13th August, 2013 : Comments by Amar Ambani, Head of Research, India Infoline
Nifty ends near 5,700; Rate sensitives shine
It was a solid day of trade on Dalal Street! The benchmark indices extended its winning streak to the third consecutive day amid fresh build up of long positions in banking stocks. Other interest rate sensitives like auto and realty were among the major gainers in trade today. Even mid- and small-cap stocks continued to extend their smart recovery.
In today’s major earnings, M&M erased almost all its intraday gains to close at Rs. 873.75, an upside of 1.45%, post its Q1 FY14 results. Commenting on the same, Amar Ambani, Head of Research at IIFL, said revenues increased 7% year-on-year on the back of a robust performance in farm equipment segment. “Profit after tax came in slightly ahead of our estimates on account of higher other income.” Ambani feels sustained tractor segment growth will remain key for FY14 earnings and so maintain a buy rating on the stock.
The Sensex finally ended Tuesday at 19,229.84, up 282.86 points or 1.49%, while Nifty closed at 5,699.30, up 86.9 points or 1.55%, over Monday’s close.
The advance-decline ratio favoured the bulls. On the Bombay Stock Exchange, 1,427 stocks advanced against 909 declines, while 150 stocks remained unchanged.
Volatility, as measured by India VIX, plunged 9% to close at 19.34. It hit a day’s high of 21.11 and low of 19.07.
Stocks in News:
DLF, Ranbaxy, Axis Bank, Jaiprakash Associates, IDFC, Tata Motors, Reliance Infrastructure, NTPC, HDFC Bank and HDFC gained while Hindalco, Coal India, Ambuja Cements, Cairn India and ONGC lost out in trade today.
Oil & Natural Gas Corporation slipped 1% to close at Rs. 275.45 per share after declaring its Q1 FY14 numbers on Monday. It posted a net profit of Rs. 40,159.8mn for the quarter ended June 30 as compared to Rs. 60,777mn YoY.
Hindalco plunged 3.2% to close at Rs .91 post its Q1 FY14 results. The company posted a net profit of Rs. 4,740.9mn as compared to Rs. 4,247.7mn YoY.
IOC closed flat at Rs. 200 per share. The company posted a net loss of Rs. 30.93bn as compared to the net loss of Rs. 224.51bn YoY.
Real estate major DLF surged a massive 9.3%, to close at Rs. 151.6, after posting its June quarter results. The company posted a net profit of Rs. 1,811.9mn as compared to Rs. 2,927.9mn YoY.