STOCKS IN NEWS
IDFC: The Reserve Bank of India said on Wednesday it had granted bank licenses to IDFC Ltd and Bandhan Financial Services that would be valid for 18 months and would be subject to the two financial firms fully complying with central bank regulations.
Bharti Airtel Ltd: The global telecommunications services provider with operations in 20 countries across Asia and Africa, and IBM announced that they have signed a new agreement to manage Airtel's infrastructure and application services in India over the next five years.
Ashok Leyland Ltd: Hinduja Group flagship company Ashok Leyland said it has bagged an order worth $ 50 million (nearly Rs 300 crore) from the Zimbabwe government for the supply of 670 vehicles.
Reliance Industries Ltd: Reliance Industries said it secured $ 500 million financing from export credit agency Export Development Canada (EDC).The transaction is among the largest financing packages the EDC has extended in Asia, the company said in a statement.
Wipro Ltd: Wipro has undertaken a major organizational revamp, reshuffling the portfolios of some of its senior leadership and creating new divisions. Pratik Kumar, executive VP-HR at Wipro, has transitioned out of the HR role. Saurabh Govil, senior VP-HR, will now lead the HR function and will report to company CEO T K Kurien.
IDBI: Public sector IDBI Bank has divested its entire 18.95 per cent stake in Stock Holding Corporation of India to IFCI Ltd. "Informed BSE that the bank has divested its entire equity holding of 39,90,000 shares (18.95 per cent) in Stock Holding Corporation of India Ltd to IFCI Ltd," IDBI Bank said in a regulatory filing to the exchange.
MTNL Ltd: State-owned Mahanagar Telephone Nigam Ltd has received a total tax refund of 146 crore for assessment years 2007-08 (111 crore) and 2009-10 (?34.94 crore), the company said in an exchange filing. Shares of MTNL gained 2.5 per cent at 16.15 on the NSE.
Ashok Leyland Ltd: Hinduja Group flagship company Ashok Leyland said it has bagged an order worth $ 50 million (nearly Rs 300 crore) from the Zimbabwe government for the supply of 670 vehicles.
Reliance Industries Ltd: Reliance Industries said it secured $ 500 million financing from export credit agency Export Development Canada (EDC).The transaction is among the largest financing packages the EDC has extended in Asia, the company said in a statement.
Wipro Ltd: Wipro has undertaken a major organizational revamp, reshuffling the portfolios of some of its senior leadership and creating new divisions. Pratik Kumar, executive VP-HR at Wipro, has transitioned out of the HR role. Saurabh Govil, senior VP-HR, will now lead the HR function and will report to company CEO T K Kurien.
IDBI: Public sector IDBI Bank has divested its entire 18.95 per cent stake in Stock Holding Corporation of India to IFCI Ltd. "Informed BSE that the bank has divested its entire equity holding of 39,90,000 shares (18.95 per cent) in Stock Holding Corporation of India Ltd to IFCI Ltd," IDBI Bank said in a regulatory filing to the exchange.
MTNL Ltd: State-owned Mahanagar Telephone Nigam Ltd has received a total tax refund of 146 crore for assessment years 2007-08 (111 crore) and 2009-10 (?34.94 crore), the company said in an exchange filing. Shares of MTNL gained 2.5 per cent at 16.15 on the NSE.
Axis Bank Ltd: Axis Bank raised debt security of $ 30.6 million in the international market under Medium Term Note (MTN) programme. The debt security has been raised through its Dubai International Centre branch.
Suzlon Energy Ltd: Suzlon Energy has taken over a wind farm in the US to recover $208 million it said was outstanding from client Edison Mission Energy, which had withheld the payment accusing the Indian wind-turbine maker of supplying defective equipment.
Suzlon Energy Ltd: Suzlon Energy has taken over a wind farm in the US to recover $208 million it said was outstanding from client Edison Mission Energy, which had withheld the payment accusing the Indian wind-turbine maker of supplying defective equipment.
SpiceJet Ltd: SpiceJet claims it recorded 220,000 bookings on Tuesday, as customers lapped up tickets with a base fare of Re 1. Typically, the airline sells 40,000 seats a day. On Tuesday, it had a fare of Re 1 for one or two seats a flight, less than two per cent of its daily inventory, said media reports.
NIFTY NEWS
Indian markets are expected to trade in a range on Thursday following positive trend seen in other Asian markets. The key support for the index is around 6,713 levels.
"The Nifty is expected to trend up till 6770 in the next couple of days. In this period the key support will be at 6713 and resistance will be at 6770," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market," he added.
Mehta is of the view that the short-term bias remains positive for a target of 6770 with reversal at 6560. The medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
"The Nifty is expected to trend up till 6770 in the next couple of days. In this period the key support will be at 6713 and resistance will be at 6770," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market," he added.
Mehta is of the view that the short-term bias remains positive for a target of 6770 with reversal at 6560. The medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
Pre-market: Nifty seen opening higher; NBFCs in focus
The 50-share Nifty index is expected to open higher on Thursday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to head higher but may face some resistance above 6750 levels.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 55 point higher at 6776.50, indicating a higher opening on the domestic market.
Shares in non-banking finance companies (NBFCs) which have applied for bank licenses will be in focus after the Reserve Bank of India (RBI) granted "in-principle" bank licences to Infrastructure Development Finance Co and microfinance lender Bandhan Financial Services Ltd.
The Nifty extended its winning streak for tenth straight session on Wednesday and closed at an all-time high on the back of strong inflows from foreign institutional investors.
The Indian equity market ended at another life-time high for the seventh consecutive day on Wednesday as the Indian currency further strengthened against the US Dollar. The rupee hit a high of Rs. 59.60 per dollar, its strongest since July 30, 2013.
On technical charts, the momentum indicators are extremely overbought and if the market faces any correction, it may last for atleast 2-3 per cent on the indices. However, the ideal strategy is to continue to remain bullish, and trail the stop losses at every high made by the index, say analysts.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 55 point higher at 6776.50, indicating a higher opening on the domestic market.
Shares in non-banking finance companies (NBFCs) which have applied for bank licenses will be in focus after the Reserve Bank of India (RBI) granted "in-principle" bank licences to Infrastructure Development Finance Co and microfinance lender Bandhan Financial Services Ltd.
The Nifty extended its winning streak for tenth straight session on Wednesday and closed at an all-time high on the back of strong inflows from foreign institutional investors.
On technical charts, the momentum indicators are extremely overbought and if the market faces any correction, it may last for atleast 2-3 per cent on the indices. However, the ideal strategy is to continue to remain bullish, and trail the stop losses at every high made by the index, say analysts.
"Technically, the short term trend has now seen 10 consecutive days of positive momentum, with almost 7 out of 10 days, the markets closing at near to the high points of the day," LKP said in a report.
Investors should use trailing stop loss in Nifty placed around 6600-6620 level, says LKP.
Overnight, US stocks closed at another record high on as signs of steady private-sector hiring showed that the economy is on the right track.
"Wednesday's data from payrolls processor ADP showed U.S. private-sector employers added 191,000 workers in March, slightly below the 195,000 forecast, while gains in the previous month were revised to 178,000 from a previously reported 139,000," Reuters reported.
The Dow Jones industrial average rose 40.39 points or 0.24 percent, to end at 16,573. The S&P 500 gained 5.38 points or 0.29 percent, to finish at 1,890.90, a record closing high. The S&P 500 also hit an intraday record high of 1,893.17.The Nasdaq Composite added 8.416 points or 0.20 percent, to close at 4,276.456.
Asian shares edged higher to four-month highs as upbeat U.S. data underpinned risk appetite, leaving the yen languishing at 10-week lows.
"The outlook for the Japanese currency remains weak. It is expected to lose ground as persistently low inflation and an economy hurt by a sales tax is likely to force the Bank of Japan to ramp up its own stimulus just as the Federal Reserve winds down its own," added a Reuters report.
Japan's Nikkei 225 index was trading 0.6 per cent higher at 15,037.50 and Hong Kong's Hang Seng index was trading 0.26 per cent higher at 22,581.12.
Investors should use trailing stop loss in Nifty placed around 6600-6620 level, says LKP.
Overnight, US stocks closed at another record high on as signs of steady private-sector hiring showed that the economy is on the right track.
"Wednesday's data from payrolls processor ADP showed U.S. private-sector employers added 191,000 workers in March, slightly below the 195,000 forecast, while gains in the previous month were revised to 178,000 from a previously reported 139,000," Reuters reported.
The Dow Jones industrial average rose 40.39 points or 0.24 percent, to end at 16,573. The S&P 500 gained 5.38 points or 0.29 percent, to finish at 1,890.90, a record closing high. The S&P 500 also hit an intraday record high of 1,893.17.The Nasdaq Composite added 8.416 points or 0.20 percent, to close at 4,276.456.
Asian shares edged higher to four-month highs as upbeat U.S. data underpinned risk appetite, leaving the yen languishing at 10-week lows.
"The outlook for the Japanese currency remains weak. It is expected to lose ground as persistently low inflation and an economy hurt by a sales tax is likely to force the Bank of Japan to ramp up its own stimulus just as the Federal Reserve winds down its own," added a Reuters report.
Japan's Nikkei 225 index was trading 0.6 per cent higher at 15,037.50 and Hong Kong's Hang Seng index was trading 0.26 per cent higher at 22,581.12.
South Korea's Kospi index was trading 0.3 per cent higher at 2,004. China's Shanghai index was trading flat at 2,058.
Profit-booking likely soon in overbought market, feel analysts
Brokerages are advising clients, primarily HNI investors, to exercise caution ahead of the elections. Even as the market touches a new high, there are fears that volatility could creep in. Some of the technical analysts think that Nifty's 6800 and 7000 levels are important psychological resistance levels with the market are currently at an overbought zone.
"The immediate resistance for Nifty is seen at 6779, after which 6800 is seen as major psychological resistance levels. We expect some profit booking to emerge going ahead as markets are currently at overbought zone. On the downside 6,660 is seen as important support level," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services. The broader index, NSE Nifty rallied 31 points or 0.47%, to end at 6,752 points on Wednesday, its highest closing ever.
The benchmark index BSE Sensex surged 105 points or 0.47%, to close at 22,551 points. Indian markets hit a new high on Wednesday, extending gains for 10 straight sessions, its longest winning streak in over six years, primarily on foreign fund buying.
"We would like to advise investors that one should exercise caution going ahead, because volatility is expected to increase which may lead to market resistance at higher levels. However, Nifty can touch 7,000 levels, if foreign fund flows continue to remain robust," said Deven Choksey, managing director at KR Choksey Securities.
Meanwhile, the foreign institutional investors ( FIIs) have pumped in a whopping $ 3.3 bliion, or Rs 20,000 crore, last month and riding the rally, they bought equities worth over Rs 594 crore on Wednesday. The rupee further gained against the US dollar. The local currency hit a high ofRs 59.60, its strongest level since July 30, 2013, which also boosted investors' sentiment .Among blue chip stocks, Reliance Industries and Larsen & Toubro hit 52-week highs.
RIL closed 1.68% higher at Rs 956 while L&T ended 1.85% up at Rs 1,299. Bank stocks continued to perform well despite the Reserve Bank of India's somewhat hawkish stance on interest rates. India's largest lender SBI surged 2.06% to end at Rs 1933 while HDFC rose 1.09% to close at Rs 897. "While the broader market has moved up a bit, we have seen pressure on sectors like IT and pharma because the rupee has appreciated and some of the cyclical sectors have done well.
The sectoral rotation will continue and it would keep the market upside in check for some time," said Mahesh Patil, Fund Manager, Birla Sun Life MF. Among frontline stocks Bharti Airtel was the biggest gainer in the Sensex, up 3.34% to end at Rs 326, after leading brokerage house CLSA said that the telecom services provider is best placed to ride the data boom in India.
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