31st October, 2013 : Comments by Amar Ambani, Head of Research, India Infoline
Nifty extended gains and hit 6,300 levels for the first time since November 10, 2010 with the bourses reporting their highest ever turnover which stood at approximately 5.3 lakh crore.
The celebrations have begun early as there were fire crackers all over the Indian bourses. It was a sensational trading session which ended just few points away from all time highs. The BSE Sensex and the NSE Nifty notched up further gains amid strong rollovers witnessed in the banking, metals, financials and auto stocks.
Today’s rally was a broad based one with the bourses reporting their highest ever turnover which stood at approximately 5.3 lakh crore. The advance decline ratio favoured the bulls with 1319 stocks advancing against 1161 declining stocks.
Market sentiment got a boost after Bank of India reported a rise of 2.05 times in net profit on yoy basis to Rs6.21bn for the quarter ended Sept. 30, 2013. Total income of the bank increased by 16.18% to Rs103.39bn for the quarter ended Sept. 30, 2013 as compared to Rs88.99bn in the same period last year. The bank has made provision of Rs12.32bn, which was 20.62% lower than the same period last year.
The upmove was so strong that barring the BSE Healthcare index all the other BSE sectoral indices ended in the positive terrain. BSE Consumer Durable index was the top gainer, up 2.65% followed by BSE PSU index up 2.5%, BSE Banking index up 2%, BSE Metal and oil and gas index up 1.7% and 1.4% respectively.
Finally, BSE Sensex closed at 21,164 up 130.5 points, while NSE Nifty closed at 6,299 up 47 points over the previous close.
Bank of Baroda, PNB, SBI, JP Associates, IDFC, Tata Steel, Coal India, NMDC and GAIL were among the top gainers in the Nifty index. Dr reddy’s Labs, Ambuja Cement, Sun Pharma, Lupin and Ranbaxy were among the top losers.
The INDIA VIX was down 6% at 18.39. It hit a day’s high of 19.75 and low of 18.21…Read More
Bank of India reported a rise of 2.05 times in net profit on yoy basis to Rs6.21bn for the quarter ended Sept. 30, 2013. Total income of the bank increased by 16.18% to Rs103.39bn for the quarter ended Sept. 30, 2013 as compared to Rs88.99bn in the same period last year. The bank has made provision of Rs12.32bn, which was 20.62% lower than the same period last year.
Speaking on PSU banks, Amar Ambani Head of Research at IIFL said, “Absence of any negative shocks in asset quality within PSU banking results announced so far fueled markets hopes that the worst is over for them. Trading at abysmally low valuations, PSU banks rallied sharply by 5-20%.”