15th July, 2013 : Comments by Amar Ambani, Head of Research, India Infoline
The Indian equity market started off the week with smart gains. The Nifty managed to sustain above the 6,000 mark for the second consecutive trading session while the Sensex closed above the 20,000 mark for the first time since May 30.
The markets opened gap down, tracking weak macro-economic data released post market hours on Friday. Inflation, based on the Wholesale Price Index, rose to 4.86% in June against 4.7% in May. It was driven mainly by rising food prices.
Sentiment improved on expectations of a rate cut as Reserve Bank Governor D Subbarao’s meets with Finance Minister P Chidambaram and Prime Minister Manmohan Singh later today.
However, there was a knee-jerk reaction after RBI imposed monetary penalty on 22 banks for violating know-your-customer and anti-money laundering norms.
Among sectors, FMCG, healthcare , banks, IT, consumer durables, realty, auto, metal, capital goods, and oil and gas gained while power was the sole loser.
The Sensex closed at 20,034, up 76 points, while the Nifty shut shop at 6,030, up 21 points over Friday’s close. The BSE Small-Cap and Mid-Cap index outperformed the benchmarks, notching gains of 0.8% and 0.9% respectively.
The advance-decline ratio favoured the bulls. On the Bombay Stock Exchange, 1,346 stocks advanced against 966 declines, while 133 stocks remained unchanged.
Volatility, as measured by India VIX, was up 0.5% at 18.79. It hit a day’s high of 19.54 and low of 17.63.
Ashok Leyland fell 1.97% ahead of its earnings on Tuesday to Rs. 17.45 per share. Volumes on the counter surged to 67 lakh as against its five-day average of 43 lakh. Amar Ambani, Head of Research at IIFL, sees Ashok Leyland Q1 FY14 sales falling 23% year-on-year at Rs. 23.15bn. “Operating profit margins are expected to rise 4.5%, a 3.5% fall YoY.” He expects the commercial vehicle maker to post a net loss of Rs. 720mn.
The Indian equity market started off the week with smart gains. The Nifty managed to sustain above the 6,000 mark for the second consecutive trading session while the Sensex closed above the 20,000 mark for the first time since May 30.
The markets opened gap down, tracking weak macro-economic data released post market hours on Friday. Inflation, based on the Wholesale Price Index, rose to 4.86% in June against 4.7% in May. It was driven mainly by rising food prices.
Sentiment improved on expectations of a rate cut as Reserve Bank Governor D Subbarao’s meets with Finance Minister P Chidambaram and Prime Minister Manmohan Singh later today.
However, there was a knee-jerk reaction after RBI imposed monetary penalty on 22 banks for violating know-your-customer and anti-money laundering norms.
Among sectors, FMCG, healthcare , banks, IT, consumer durables, realty, auto, metal, capital goods, and oil and gas gained while power was the sole loser.
The Sensex closed at 20,034, up 76 points, while the Nifty shut shop at 6,030, up 21 points over Friday’s close. The BSE Small-Cap and Mid-Cap index outperformed the benchmarks, notching gains of 0.8% and 0.9% respectively.
The advance-decline ratio favoured the bulls. On the Bombay Stock Exchange, 1,346 stocks advanced against 966 declines, while 133 stocks remained unchanged.
Volatility, as measured by India VIX, was up 0.5% at 18.79. It hit a day’s high of 19.54 and low of 17.63.
Ashok Leyland fell 1.97% ahead of its earnings on Tuesday to Rs. 17.45 per share. Volumes on the counter surged to 67 lakh as against its five-day average of 43 lakh. Amar Ambani, Head of Research at IIFL, sees Ashok Leyland Q1 FY14 sales falling 23% year-on-year at Rs. 23.15bn. “Operating profit margins are expected to rise 4.5%, a 3.5% fall YoY.” He expects the commercial vehicle maker to post a net loss of Rs. 720mn.