Pre-Session –Gap up opening seen for markets Analysis for May 20, 2013

Posted By: Religare
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The key domestic benchmarks may see positive opening today tracking firm cues from global peers. On the global front, most of Asian stocks creep higher in opening led by gains in Hong Kong market, after stronger-than-expected U.S. data spurred demand for riskier assets. On Friday, US stock ended higher extending winning streak for the fourth consecutive week after encouraging economic data cast a positive spin on the economy. S&P 500 and DJIA notched new record high, rebounding from prior day"s losses on strong buying interest after data showed US consumer sentiment hit an almost six-year high at 83.7 in May from 76.4 in the prior month.

Back home, inflows of foreign funds into the domestic market and next batch of corporate earnings are is likely to dictate trend for the markets. Risk sensitive stocks may continue its bullish trend on hope of further rate cut by RBI in its June 17 policy meet. But in the absence of any major trigger from domestic market and caution ahead of potential election will keep the market range-bound in the near term. Q4FY13 earnings from blue chip stocks of Coal India, State Bank of India and Jet Airways are likely to dictate trend for the market this week.

Meanwhile, most of Asian stocks creep higher in opening led by gains in Hong Kong market, after stronger-than-expected U.S. data spurred demand for riskier assets. Japan's Nikkei roared to a fresh 5-1/2 year high on Monday morning, as further weakness in the yen and signs of an improving U.S. economy bolstered prospects for higher Japanese corporate earnings in the current business year. Among the Asian stocks, Japan's Nikkei surged 1.20 percent, while Hong Kong"s HANG SENG INDEX rose 1.75 per cent. On the flip side, Chinese stocks were trading 0.10 per cent above previous closing.

The key domestic benchmarks ended higher today as the Sensex logged modest gains amid a rally in power and capital goods stocks. However, the gains in the Sensex were trimmed by profit-booking following the recent stellar rally. Experts opine that robust FII inflows will continue to support the domestic benchmarks. Investors are now eying the RBI rate decision next month, which would be the next trigger for D-Street.

The BSE SENSEX closed at 20,286.12, up by 38.79 points or by 0.19 per cent and the NSE Nifty ended at 6,187.3, up by 17.4 points or by 0.28 per cent.

The BSE Sensex touched intraday high of 20,328.19 and intraday low of 20,155.01. The NSE Nifty touched intraday high of 6,199.95 and intraday low of 6,146.15.

Meanwhile, the BSE MIDCAP closed at 6,613.98, up by 21.77 points or by 0.33 per cent, while the BSE SMLCAP ended at 6,199.19, up by 8.25 points or by 0.13 per cent.

On the Sectoral front, Power and Capital Goods rose 3.08 per cent and 2.95 per cent, respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 2570, shares advanced were 1159 while 1262 shares declined and 149 were unchanged.

The top gainers of the BSE Sensex pack were Bharat Heavy Electricals Ltd. (Rs. 201.35,+4.00%), NTPC Ltd. (Rs. 159.80,+2.24%), ICICI Bank Ltd. (Rs. 1228.60,+1.92%), Larsen & Toubro Ltd. (Rs. 1623.05,+1.84%), Bajaj Auto Ltd. (Rs. 1833.80,+1.44%), among others.

The FIIs continued to support Indian equity market, but turned net seller in debt market. Gross equity purchased stood at Rs. 4021.70 Crore and gross debt purchased stood at Rs. 772.90 Crore, while the gross equity sold stood at Rs. 2781.20 Crore and gross debt sold stood at Rs. 775.10 Crore. Therefore, the net investment of equity and debt reported were Rs. 1240.50 Crore and Rs. -2.20.

Top traded Volumes on NSE Nifty were Jaiprakash Associates Ltd. 28984096.00, ITC Ltd. 16268209.00, NTPC Ltd. 7327667.00, Tata Motors Ltd. 6975884.00, DLF Ltd. 6458964.00.

On NSE, total number of shares traded was 66.99 Crore a

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Story first published: Monday, May 20, 2013, 10:20 [IST]
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