Sensex & Nifty touched all time high today

Nifty hit a record high of 7918.55, before ending the day at 7897.50, up 23.25 points compared to previous day’s closing value. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices climbing over a percent each.

The S&P BSE Sensex finally closed 29.71 points or 0.11 per cent higher at 26420.67 to a fresh closing high. Following the momentum as much as 4 stocks rose to their fresh 52-week high on the BSE Sensex, which includes names like Cipla, M&M, Maruti Suzuki and Tata Motors.

“The Independence Day speech of the Prime Minister clearly tells us that the main focus is on creating infrastructure, making manufacturing easier. According to investor's, long term outlook is very positive. On the global front, Asian markets closed higher with the Nikkei rising 0.8 percent and European markets were trading at 0.4-1 percent following strong Wall Street closing last night (on easing tensions in Russia).
Back home, auto, capital goods, power and banks (select) stocks supported benchmark indices while FMCG and HDFC twins lost ground.

Auto stocks were leaders of the day.

BSE Auto Index gaining more than 2 percent. Tata Motors and Mahindra and Mahindra topped the buying list as well as ended at record closing high of Rs 518.75 and Rs 1374.55, up 3 percent and 3.7 percent, respectively. 

Two-wheeler makers Bajaj Auto and Hero Motocorp gained 2.5 percent and 1.3 percent, respectively. Capital goods majors BHEL (up 2.8 percent), and Larsen and Toubro (up 1.3 percent) too were on buyers’ radar. Shares of Sesa Sterlite advanced 1.5 percent after Goa government's announcement of resuming operations in the mining industry by the year-end. 
 
Top car maker Mauti Suzuki too saw all-time closing high, up 1.6 percent after Deutsche Bank maintains the stock as its top pick in the Indian auto sector with a target price of Rs 3000 a share.

Decline in gasoline prices in India by 4 percent from the beginning of FY15 is a positive development for entry-level car (Alto/WagonR) demand, said the brokerage. 

Among banking and financials;

State Bank of India, ICICI Bank and Axis Bank rose nearly a percent while HDFC Bank lost a percent. Housing finance company HDFC plunged 2.5 percent. TCS dropped 2 percent followed by ITC, Reliance Industries, Sun Pharma, Hindustan Unilever, Hindalco Industries, Infosys and Tata Steel with 0.2-0.8 percent. In the midcap space, Manappuram Finance surged 19 percent. Muthoot Finance, Shoppers Stop, Sadbhav Engineering and Jyothy Labs rallied 8-10 percent while Bhushan Steel, Prestige Estate, Engineers India, Pine Animation and ALSTOM India fell 2.5-5 percent. Oil retailers IOC, HPCL, BPCL surged 1.5-4 percent as the diesel under recovery dropped to record lows. 

As losses on retail diesel sales are now down to Rs 0.8 per litre, Goldman Sachs estimates it to fall to Rs 0.3 per litre after the price hike on September assuming oil prices and diesel cracks remain around current levels. Advancing shares outnumbered declining ones by a ratio of 1660 to 1285 shares on the Bombay Stock Exchange.

Generic agrochemicals company Meghmani Organics

Generic agrochemicals company Meghmani Organics reported strong Q1FY15 numbers.It reported revenue and EBITDA growth along with turnaround on net profit front. Net profit grew to Rs 7.8 crore v/s net loss of Rs 3.6 crore in the corresponding quarter last fiscal. Its closing price is Rs 17.72 in previous session.

Top line grew 22 per cent to Rs 312.7 crore, Year-on-Year (YoY) and EBITDA went up 20 per cent to Rs 49.9 crore, YoY on account of higher revenue growth, partially offset by rise in material cost.

According to the management, the company is seeing a business turnaround due to capex investment of Rs 130 crore. It is focussing on branded business in agro chemicals space and is looking to expand it in overseas & domestic markets. It has set a target of Rs 600 crore for the agro chemicals segment.

The company is expecting capacity utilisation to go up to 80 per cent from 60-65 per cent currently. It is expecting a topline of Rs 1,550 crore & EBITDA of Rs 250 crore for FY15. It sees PAT to be around Rs 55 crore in the same period.

"Meghmani stock has been trading at lower 1-year forward EV/EBITDA multiple of ~3.9x. With revival in business cycle, we have assigned 5.9x EV/EBITDA multiple (21 per cent discount to global peers) to arrive at FY16E based price target of Rs 34/share," the brokerage said.

The Sensex today scaled 26,000 levels

The Sensex today scaled 26,000 levels, continuing with its record-breaking binge, ahead of the Union Budget by Arun Jaitley.

IT, realty, power and metal stocks supported the momentum of the 50-share Nifty index which managed to scale fresh record high of 7,792.

The Sensex today scaled 26,000 levels

The S&P BSE Sensex ended at 26,100.08, up 138.02 points or 0.53 per cent. It touched an all-time high of 26,123.55 and a low of 25,992.73 in trade today.

The 50-share index nifty closed at 7,787.15, up 35.55 points or 0.46 per cent. It touched an all-time high of 7,792 and a low of 7,755.10 in trade today.

Finance Minister Arun Jaitley will present the Union Budget in the Parliament on July 10. There are high expectations from the Budget as the new government doesn't have any coalition compulsions and Prime Minister Narendra Modi has given hopes of a growth-oriented economic policy.

Even as the Budget event is a few days away, the Indian markets are at life-time high in the pre-Budget rally. Investors are bullish on equities and a rally is seen across the board. Let it be cyclicals, defensives or midcaps; valuations of most of them are running high.

  • The government will have to pursue the divestment route to generate revenues. The SEBI has made it easy for the finance minister as it made mandatory for all listed PSUs to achieve a minimum public shareholding of 25 per cent within three years. This move will help the government to raise around Rs 60,000 crore through the PSU stake sale against the target of Rs 52,000 crore.
  • At rupee at 60 per dollar mark, higher crude oil price puts pressure on the government's finances. Nearly 70 per cent of India's import is oil and continuation of high prices would have strained the government's budgetary plans. Every US$10/barrel rise would have shaved 0.5 per cent off India's GDP.
  • The easing of crude oil prices is a positive development for the new government. The Brent crude oil price had shot up to $115 per barrel recently due to the on-going sectarian war in Iraq. This forced the government to hike the prices of diesel, petrol and on-subsidised LPG cylinders.

Tata Motors chairman,Cyrus Mistry.


India's largest automobile company Tata Motors chairman,Cyrus Mistry, has said that the company is at an inflexion point with a strong pipeline of new products with new technologies that Tata Motors has developed to meet the changing market, customer aspiration and regulatory needs, as he expects a turnaround in the later part of FY-15.


Tata Motors chairman cyrus mistry
Tata motors - Cyrus Mistry

Cyrus Mistry said that Company's marquee brands Jaguar Land Rover will continue to break new records and the company is committed on making investments on both these brands to deliver new products in 5 years and expand manufacturing footprint in Brazil and China
Having seen one of the toughest years in FY-14 for the standalone entity, wherein Tata Motors posted a whopping 36% drop in passenger vehicle sales and 29% drop in commercial vehicle sales in FY-14 registered lowest market share in the recent years. While the company holds on to its leadership position in the CV space, the company has already ceded the number 3 position in the passenger vehicle sales to Mahindra & Mahindra.
Cyrus Mistry agreed, "Tata Motors domestic business,  market share in both commercial vehicles and passenger vehicles business has lost. While the competition in both the segments remained quite aggressive with almost all the players resorting to huge discounting, Tata Motors' approach was cautious and responsible."
As integral part of this approach, the company focused on keeping inventory levels low in order to reduce the burden on its channel partners.
For most part of FY-14, the economy was hamstrung by rising inflation and high interest rates, leading to relatively low consumer interest in buying new vehicles, and, in many cases, postponement of purchase, which impacted the sales, Cyrus Mistry  noted.

Retail investors in BSE Sensex

The BSE Sensex has already rallied 9-10 per cent so far in the month of May and most experts are confident that this is the starting of a long-term bull market and investors should buy right stocks and hold on to them for maximum returns.

Retail investors, who have largely stayed away from the Indian markets and have missed 20 per cent plus rally seen in the BSE Sensex since September when the BJP officially announced Narendra Modi as their Prime Ministerial candidate, may come back to the markets on the hopes of superior returns than other asset classes.

FIIs have poured in close to Rs 14,000 crore so far this month on the hopes that the new BJP government, which took charge earlier this week, will introduce pro-growth reforms to revive economy and boost investments.

INFOSYS' CEO CONTENDER BG SRINIVAS RESIGNS

INFOSYS' CEO CONTENDER BG SRINIVAS RESIGNS


BG Srinivas, President & Member of the Board, resigned from Infosys w.e.f June 10. This is the 10th high-profile exit from the company in the last one year. Srinivas, who was once seen as the top contender for the job of Infosys CEO along with Pravin Rao, had been informed in no uncertain terms that he was no longer in the reckoning. Infosys has been seeing a string of exits since Narayana Murthy returned for a second innings in the company. The post of CEO at Infosys will fall vacant when current boss SD Shibulal retires.  

Sensex Soars 257 Points As Inflation Eases To 5-Month Low At 6.16%

Wednesday, Jan 15, 2014
LEAD STORIES
HEADLINE INFLATION EASES TO 5-MONTH LOW AT 6.16% 
Aided by lower vegetable prices, food articles inflation fell by 6.4% (MoM), non-food articles & minerals grp declined by 0.4% & 3.1% respectively. read more
INFLATION NOS CHEERS MKTS, SENSEX SURGES 257 PTS 
Fall in inflation by 136 bps in December raised hopes that RBI may not touch policy rates on Jan 28. Nifty rallied 79.05 pts to 6320.90. read more
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EVENTS
16 January
Q3 Results: TCS, Bajaj Auto, HCL Tech
Bombay HC To Hear NSEL Settlement Case
17 January
Q3 Results: HDFC Bank, ITC, RIL, Wipro
Congress To Convene AICC Meet In Delhi
SEBI Vs Sahara Case
23 January
2G Spectrum Auction To Start
27-29 January
CII Partnership Summit 2014, Taj West End, Bangalore
"The national election due by May will mainly be a contest between AAP and the main opposition Bharatiya Janata Party. The ruling Congress is not even in the picture."

Arvind Kejriwal
CM, Delhi
"They (AAP) are Jurassic. They smell of anarchy. They just demean everything that has been time-tested. They ridicule anything. They question and demean anything... AAP is a real threat to our system. They are anarchist. They want to destroy the system. They are anarchist either by choice or by ignorance."

Salman Khurshid
External Affairs Minister
"The easing of inflation at a time when industrial growth continues to be in the red should induce RBI to review its monetary policy stance and cut its policy rates to rejuvenate growth, which has been hit by high interest costs, flagging investments and subdued demand."

Chandrajit Banerjee
Director General, CII