Daily Report for Indian Stock Market

Vision on markets today

A lower than expected economic growth in the third quarter led to bearish outlook on the Street yesterday. The BSE Sensex plunged over 250 points from the day's high to fall into negative province in afternoon session. The Sensex closed up 21.56 points at 17752.68, while the broader Nifty index up 9.7 points at 5385.20. The third quarter gross domestic product (GDP) grew at 6.1%, falling short of consent guess that had pegged GDP growth at 6.3%. This is the slowest pace of economic growth since 2008. BSE Midcap Index was up 1.10% and BSE Smallcap Index moved 0.62% higher. Amongst the sectoral indices, BSE Oil&Gas Index gained 2.53%, BSE Power Index moved 0.28% higher and BSE Realty Index advanced 1.10%. Whereas BSE Capital Goods Index was down 1.59% and BSE Bankex slipped 0.59%. The Major Sensex gainers were ONGC, Sterlite Industries, Tata steel, Reliance Industries, and Wipro up 3.46%, 2.98%, 2.90%, 2.84% and 2.72%. Whereas Larsen & Toubro, Jindal Steel, HDFC Bank, Maruti Suzuki and Tata Motors were down 2.91%, 1.81%, 2.34%, 1.02%, 0.68% respectively. Shares of ONGC pitch higher on reports that the government is set to initiate its FPO through share auction. The government is likely to mount around Rs.124Bn.

Market breadth was muscular at ~1.23x as investors bought large lid stocks. On interim basis, FIIs bought equity of Rs.5.80Bn while domestic institutions sold equity of Rs.4.31Bn.

Asian markets are mixed today, as Japanese stocks are increasing while Chinese are down after a weak close for the US markets.

We anticipate a cautious opening for the Indian markets which tumbled on profit taking from the investors yesterday. Weak GDP data announced yesterday may oppose investors for strong buying in the Indian markets today.

Economic and Mutual Improvement

The government's financial deficit target for the current year has been violated in January, and with the numbers for the two months still to come, the gap between expenditure and revenue may extend further. At the end of the 10 months ending January, the financial deficit was Rs 4, 34,933 crore or 105.4% of the target, the Controller General of Accounts (CGA) said.

Bustling stock

In one of the prime property covenant in the country in recent years, the real estate division of Adani Enterprises (AEL) has bought a two-acre land parcel in Mumbai from property developer HDIL for Rs 900 crore. The plot is situated at the city’s Andheri suburb. It was component of a large mixed-use project being developed by HDIL, sources said.

ONGC’s overseas investigation arm ONGC Videsh Ltd (OVL) and GAIL India have confirmed their awareness in bidding for UK-based Cove Energy. The association may have to quote a price in surplus of $1.77 billion, the amount already quoted by Thai rigid PTT.

A joint venture (JV) between BGR Energy Systems and Hitachi Power Europe has appeared as the lowest bidder for NTPC’s Rs 16,000-crore supercritical boiler order. BHEL had appeared as the second-lowest bidder, while a JV between Larsen & Toubro (L&T) and Mitsubishi Heavy Industries was placed third lowest, an official from NTPC said.

Arvind Ltd, the textile chief is looking to liquidate about 1.5 million square meters of its enormous tracts of land in Gujarat and Karnataka with the predictable revenues of Rs 5000 crore over the next two years' time.

State-owned oil companies today hiked jet fuel price by 3.2% on the back of firming up of global oil tariff.

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