Thursday, May 26, 2016

NIFTY INTRADAY VIEW ( 27 / 05 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48228BULL83207650
R38160UP BREAKOUT81867784
R28135UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R18119SELL79297825
PIVOT8029 LAST DAYVERY STRONG BULL
S18020BUYOPEN7974
S28004DOWN CAUTIONHIGH8083.0
S37979DOWN BREAK OUTLOW7948.0
S47911BEARCLOSE8069.65
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.7%
R26082LONGNIFTY WEEKLY VOLATALITY4.76%
R15976SHORT EXITNIFTY WEEKLY HIGH8083.0
S15765LONG EXITNIFTY WEEKLY LOW7716.0
S25659SHORTNIFTY DAY MEAN7899.5

THE END SESSION ( 26 / 05 )

Benchmark indices settle above key levels


Prime Minister Narendra Modi's comments in an interview to a foreign newspaper indicating that further economic reforms are on the cards triggered the latest rally on the domestic bourses. The barometer index, the S&P BSE Sensex, surged 485.51 points or 1.88% to settle at 26,366.68. The gains for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty surged 134.75 points or 1.7% to settle at 8,069.65. The Nifty moved past the the psychologically important 8,000 level and the Sensex surpassed the psychologically important 26,000 mark. The Nifty hit a 30-week closing high. The Sensex attained its highest closing level in more than 29 weeks.

Modi said he had opened up more of the economy to foreign investment and made changes to curb corruption, fill gaps in rural infrastructure and make it easier to do business. He also said that he has an enormous task ahead. The Prime Minister said that he expects the goods and services tax (GST) bill to pass this year. The BJP led National Democratic Alliance (NDA) government completed two years in office today, 26 May 2016. The prime minister said that he would look to state governments to further liberalize the country's rigid labour laws.

Strong Q4 March 2016 results from engineering and construction major L&T and the company's guidance of a 15% growth in order inflow during the current financial year also aided the latest rally on the bourses. L&T shares surged 13.85% after the company announced the results and the order inflow guidance after trading hours yesterday, 25 May 2016.

The Sensex and the Nifty extended gains during the second half of the trading session after hovering in positive zone throughout the trading session after opening with upward gap.

Capital goods stocks edged higher after the Union Cabinet approved the National Capital Goods policy to support and boost development of this crucial sector. Bank stocks edged higher after global credit rating agency Moody's Investors Service said in a report that the new bankruptcy code will address several key inefficiencies in the current legal framework for asset resolution in India and is credit positive for Indian banks. Yes Bank edged higher after the Cabinet Committee on Economic Affairs cleared the bank's proposal for increase in foreign investment limit in the bank's equity capital to 74% from 41.87% without any sub-limits.

In overseas stock markets, Asian and European stocks edged higher as gains in crude oil prices boosted investors' risk appetite. Energy and materials shares sector stocks led gains in US stocks yesterday, 25 May 2016, following a jump in crude oil prices triggered by a weekly report showing a decline in US crude inventories.

The Sensex surged 485.51 points or 1.88% to settle at 26,366.68, its highest closing level since 4 November 2015. The Sensex jumped 517.77 points, or 2% at the day's high of 26,398.94. The index rose 60.34 points, or 0.23% at the day's low of 25,941.51.
The Nifty surged 134.75 points or 1.7% to settle at 8,069.65, its highest closing level since 29 October 2015. The Nifty jumped 148.10 points, or 1.87% at the day's high of 8,083. The index rose 13.60 points, or 0.17% at the day's low of 7,948.50.

The market breadth indicating the overall health of the market was positive. On BSE, 1,408 shares rose and 1,142 shares fell. A total of 197 shares were unchanged. The BSE Mid-Cap index rose 1%. The BSE Small-Cap index rose 0.86%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2920 crore, higher than turnover of Rs 2323.39 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Capital Goods index (up 8.78%), the S&P BSE Industrials index (up 3.97%), the S&P BSE Bankex (up 2.22%) and the S&P BSE Finance index (up 1.89%) outperformed the Sensex. The S&P BSE Realty index (up 1.82%), the S&P BSE Power index (up 1.51%), the S&P BSE FMCG index (up 1.23%), the S&P BSE IT index (up 1.23%), the S&P BSE Teck index (up 1.14%), the S&P BSE Auto index (up 1.09%), the S&P BSE Oil & Gas index (up 0.96%), the S&P BSE Metal index (up 0.89%), the S&P BSE Basic Materials index (up 0.85%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.84%), the S&P BSE Utilities index (up 0.77%), the S&P BSE Energy index (up 0.49%), the S&P BSE Telecom index (up 0.4%) and the S&P BSE Consumer Durables index (up 0.07%) underperformed the Sensex. The S&P BSE Healthcare index ended almost unchanged at 15,098.72, underperforming the Sensex.

Capital goods stocks edged higher after the Union Cabinet approved the National Capital Goods policy to support and boost development of this crucial sector. ABB India (up 1.83%), Bharat Heavy Electricals (Bhel) (up 4.77%), BEML (up 1.02%), Bharat Electronics (up 1.02%), Punj Lloyd (up 2.15%), Siemens (up 4.13%) and Thermax (up 3.19%) gained. Crompton Greaves fell 1.23%.

The National Capital Goods policy aims at increasing production of capital goods from Rs 2.30 lakh crore in 2014-15 to Rs 7.50 lakh crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million. The policy envisages increasing exports from the current 27% to 40% percent of production. It will increase the share of domestic production in India's demand from 60% to 80%, thus making India a net exporter of capital goods.

L&T spurted after the company's management said in a conference call held after the announcement of the company's Q4 March 2016 results yesterday, 25 May 2016, that it expects L&T's order inflow to rise 15% in the year ending 31 March 2017 (FY 2017). 

The stock jumped 13.85% to Rs 1,470.10. The stock hit a high of Rs 1,484 and a low of Rs 1,389.75 in intraday trade. L&T expects 12-15% growth in revenue in the year ending 31 March 2017 (FY 2017). L&T reported 18.55% rise in consolidated net profit to Rs 2453.64 crore on 17.88% rise in total income to Rs 33375.26 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 25 May 2016.

L&T said that the order inflow during Q4 March 2016 was Rs 43334 crore of which one third constituted international orders. The order intake of L&T's infrastructure division rose just 3% at Rs 29103 crore in Q4 March 2016 over Q4 March 2015. The order intake of its hydrocarbon divsion rose sharply to Rs 4963 crore in Q4 March 2016 from Rs 699 crore in Q4 March 2015.

L&T's order book stood at Rs 249949 crore as on 31 March 2016, higher by 7% on year-on-year basis. International order book constituted 28% of the total order book.
L&T said in a statement that the company continues its emphasis on operational efficiencies, faster execution of projects on hand and reduced working capital levels. Given its track record, diversified portfolio and healthy order book, the company is focusing on profitable execution of the existing order book and is confident of its growth in the near to medium term by leveraging its presence in both the domestic and international segments.

State-run ONGC rose 2.05% to Rs 214.50 after net profit rose 12.22% to Rs 4416.11 crore on 15.42% decline in total income to Rs 19776.70 crore in Q4 March 2016 over Q4 March 2015. The result was announced at the fag end of the trading session today, 26 May 2016.

ONGC's net profit fell 9.75% to Rs 16003.65 crore on 4.14% decline in total income to Rs 84584.99 crore in the year ended 31 March 2016 over the year ended 31 March 2015.

In terms of the decision of the Government of India, the company shared under-recoveries of oil marketing companies (OMCs) amounting to Rs 1096 crore for the year ended March 2016 (FY 2016) by allowing discount in the prices of crude oil based on the rates of discount communicated by Petroleum Planning and Analysis Cell (PPAC). The discount was sharply lower than Rs 36300 crore in the year ended 31 March 2015 (FY 2015). The impact on net profit was Rs 607 crore in FY 2016 as compared to Rs 20437 crore in FY 2015.

ONGC's consolidated net profit fell 22.96% to Rs 14123.80 crore on 16.63% decline in total income to Rs 139364.35 crore in the year ended 31 March 2016 over the year ended 31 March 2015.

Bank stocks edged higher after global credit rating agency Moody's Investors Service said in a report that the new bankruptcy code will address several key inefficiencies in the current legal framework for asset resolution in India and is credit positive for Indian banks. Among public sector banks, State Bank of India (up 5.22%), Canara Bank (up 2.51%), Bank of Baroda (up 1.28%), Vijaya Bank (up 1.67%), Union Bank of India (up 1.51%), Bank of India (up 2.41%), Punjab National Bank (up 0.74%), Andhra Bank (up 2.67%), IDBI Bank (up 0.46%) edged higher.

Among private sector banks, Federal Bank (up 4.15%), ICICI Bank (up 1.83%), Axis Bank (up 3.78%), Kotak Mahindra Bank (up 3.05%), IndusInd Bank (up 0.66%) and HDFC Bank (up 0.84%) edged higher.

Moody's said that the proposed bankruptcy law will reduce the duration of insolvency resolution process (IRP) of a delinquent borrower to maximum of 270 days which in turn will strengthen the banks' bargaining power over delinquent borrowers. The bankruptcy law will give creditors overriding authority to approve terms of any restructuring package of a delinquent borrower. Moody's also said that new law may only a have a limited benefit in addressing the current asset quality issues facing Indian banks. According to Moody's, Indian banks will still have limited avenues available to dispose off distressed assets and that the banks will in general remain reluctant to make appropriate haircuts to reflect their current weak operating conditions.

Yes Bank rose 2.93% after the Cabinet Committee on Economic Affairs cleared the bank's proposal for increase in foreign investment limit in the bank's equity capital to 74% from 41.87% without any sub-limits. In late April 2016, the Reserve Bank of India (RBI) had raised the ceiling on investment in the bank's equity capital by foreign institutional investors to 60% from 49% after the bank's board of directors and shareholders approved the proposal. The RBI had at time capped total foreign holding in the bank from all sources at 60%

Tata Steel rose 0.83% at Rs 327.05 after the company trimmed losses in Q4 March 2016. The company reported consolidated net loss of Rs 3213.76 crore in Q4 March 2016, lower than net loss of Rs 5674.29 crore in Q4 March 2015. Tata Steel's total income fell 12.33% to Rs 29636.69 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 25 May 2016.

There was a drop in realisations from steel sales across the group as steel prices slid to 10-year lows. However, despite these challenges, the consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased in Q4 March 2016 on the back of higher deliveries and better operating margins in India, cost benefits from European restructuring and improved performance of the South East Asia operations. The company continued to divest its non-core assets and raised Rs 4478 crore through monetisation of same.

Given the challenging situation faced in Europe, the company has taken several steps to restructure the European operations. Tata Steel UK signed an agreement with Greybull Capital to sell its Long Products Europe business. The deal will be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain Government approvals and the satisfactory completion of financing arrangements. The Tata Steel Europe board under the advise of the Tata Steel board is actively reviewing all options for the Tata Steel UK Business including a potential sale of the business.

Tata Steel announced the start of commercial production at the 3 million tonnes per annum (mtpa) Kalinganagar steel plant. The stabilisation process is currently underway. The facility will produce flat steel for high end applications enabling the company to expand its product portfolio in the ship building, defence equipment, energy & power, infrastructure, and aviation sectors. It will also consolidate Tata Steel's leadership position in the domestic automotive segment.

KNR Constructions rose 2.52% after the company secured order worth Rs 414.90 crore from Ministry of Road Transport and Highways for rehabilitation and up-gradation of Dindigul-Bangalore road to four lane with paved shoulder in Tamil Nadu on engineering, procurement and construction basis to be completed within a period of 24 months from the appointed date.

The Sensex and the Nifty edged higher for the third day in a row. The Sensex has gained 1136.32 points or 4.5% in three trading sessions from its close of 25,230.36 on 23 May 2016. The Sensex has gained 760.06 points or 2.96% in this month so far (till 26 May 2016). The Sensex has risen 249.14 points or 0.95% in calendar year 2016 so far (till 26 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,872.07 points or 17.21%. The Sensex is off 2,211.65 points or 7.73% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,658.06 points or 12.18% from a record high of 30,024.74 hit on 4 March 2015.

Wednesday, May 25, 2016

NIFTY INTRADAY VIEW ( 26 / 05 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R48140BULL80297656
R38051UP BREAKOUT79547730
R28018UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R17997SELL78417749
PIVOT7875 LAST DAYVERY STRONG BULL
S17873BUYOPEN7812
S27852DOWN CAUTIONHIGH7941.0
S37819DOWN BREAK OUTLOW7809.0
S47730BEARCLOSE7934.9
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.69%
R26082LONGNIFTY WEEKLY VOLATALITY2.92%
R15976SHORT EXITNIFTY WEEKLY HIGH7941.0
S15765LONG EXITNIFTY WEEKLY LOW7716.0
S25659SHORTNIFTY DAY MEAN7828.5

THE END SESSION ( 25 / 05 / 2016 )

Sensex, Nifty attain 4-week closing high on strong global cues


Banking, auto, IT sector stocks and index heavyweights HDFC and ITC led the rally on the domestic bourses triggered by gains in global stocks. The barometer index, the S&P BSE Sensex, jumped 575.70 points or 2.28% to settle at 25,881.17. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty jumped 186.05 points or 2.4% to settle at 7,934.90. The two key benchmark indices extended gains in late trade after hovering in positive zone throughout the trading session after opening with upward gap. The Sensex and the Nifty, both, hit four-week closing high. All the 19 sectoral indices on BSE registered gains. World stocks rose after strong US housing data for April 2016.

The rally on the domestic bourses was further aided by a foreign brokerage upgrading the Indian equity market to 'overweight' from 'equalweight'. According to media reports, the brokerage has cited attractive valuations of Indian stocks compared with other emerging markets, the country's strong macroeconomic fundamentals, a recovery in earnings growth, prospects for the passage of the goods and services tax (GST) bill in the Rajya Sabha, expectation of good monsoon this year and likely further easing of interest rates by the Reserve Bank of India (RBI) as reasons for upgrading India's rating.

Stocks of oil exploration and production firms edged higher on rise in crude oil prices. Metal shares edged higher as copper prices rose in global commodities markets. Tech Mahindra surged on reports that a domestic brokerage has raised its price target while retaining its accumulate rating on the stock after the announcement of the company's Q4 March 2016 results. Cipla dropped after announcement of dismal Q4 March 2016 results.

Shares of two-wheeler maker Bajaj Auto surged after the company's strong Q4 March 2016 results. Bharat Heavy Electricals (Bhel) edged higher after the company's announcement that it has successfully commissioned the first 800 megawatts (MW) supercritical thermal unit in Karnataka, which is also the highest rating unit in the state.

In overseas stock markets, European stocks edged higher as eurozone finance ministers and the International Monetary Fund (IMF) reached a deal to unlock more bailout funds for debt-burdened Greece. Greece's Athens General-Composite index was currently up 0.71%. The new payouts will save Greece from defaulting on big debt redemptions to the IMF and European Central Bank in July. Eurozone finance ministers also agreed on a road map on debt relief for Greece. Meanwhile, the outcome of a poll yesterday, 24 May 2016, showed a 13-point lead in support among Britons to stay in the European Union (EU) over their rivals who support UK's exit from the EU. Britons will vote on 23 June 2016 on whether the country should remain a member of the EU.

Asian equities edged higher after encouraging reports on the US housing market saw sharp gains in US stocks overnight. Sales of new homes in the US surged 16.6% in April 2016, the fastest pace of increase in more than eight years, data released yesterday, 24 May 2016, showed.

The Sensex jumped 575.70 points or 2.28% to settle at 25,881.17, its highest closing level since 27 April 2016. The Sensex surged 592.40 points, or 2.34% at the day's high of 25,897.87. The index rose 125.12 points, or 0.49% at the day's low of 25,430.59.

The Nifty jumped 186.05 points or 2.4% to settle at 7,934.90, its highest closing level since 27 April 2016. The Nifty rose 192.35 points, or 2.48% at the day's high of 7,941.20. The index rose 60.45 points, or 0.78% at the day's low of 7,809.30.

The market breadth indicating the overall health of the market was strong. On BSE, 1,579 shares rose and 960 shares fell. A total of 180 shares were unchanged. The BSE Mid-Cap index rose 0.97%. The BSE Small-Cap index rose 0.94%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2310 crore, lower than turnover of Rs 2608 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Bankex (up 3.17%), the S&P BSE Capital Goods index (up 2.96%), the S&P BSE Finance index (up 2.59%) outperformed the Sensex. The S&P BSE IT index (up 2.25%), the S&P BSE Teck index (up 2.21%), the S&P BSE Power index (up 2.04%), the S&P BSE Telecom index (up 2.01%), the S&P BSE Oil & Gas index (up 2.01%), the S&P BSE FMCG index (up 1.88%), the S&P BSE Utilities index (up 1.87%), the S&P BSE Basic Materials index (up 1.85%), the S&P BSE Auto index (up 1.82%), the S&P BSE Industrials index (up 1.73%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.72%), the S&P BSE Realty index (up 1.62%), the S&P BSE Energy index (up 1.35%), the S&P BSE Metal index (up 1.1%), the S&P BSE Healthcare index (up 0.56%) and the S&P BSE Consumer Durables index (up 0.47%) underperformed the Sensex.

Stocks of oil exploration and production firms edged higher on rise in crude oil prices. Cairn India (up 1.02%) and ONGC (up 1.5%) edged higher. Oil India fell 0.23%. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.

Index heavyweight Reliance Industries (RIL) rose 0.84% to Rs 947.90. The stock hit a high of Rs 951.90 and a low of Rs 941.60 in intraday trade.

The Ministry of Petroleum and Natural Gas today, 25 May 2016, announced the commencement of the process for auction of small oil and gas blocks. The government will auction 46 contract areas consisting of 67 different small fields for exploration and production. These small blocks have 625 million barrels of oil and oil equivalent gas (O+OEG) in-place volumes spread over 1,500 square kilometers in Onland, Shallow water and Deepwater areas. These oil and gas blocks are being auctioned under the new Hydrocarbon Exploration and Licensing Policy (HELP) and a new fiscal model based on revenue sharing contract. Single license for exploring all forms of hydrocarbons, graded system of royalty rates, pricing and marketing freedom for crude oil and natural gas are some of the highlights of HELP.

Shares of public sector oil marketing companies also moved higher. Indian Oil Corporation (up 1.24%), HPCL (up 3.97%) and BPCL (up 2.94%) edged higher.
Crude oil futures edged higher on speculation that a weekly report from the US government will show fall in US crude stockpiles after a US oil industry body announced a reduction in US crude supplies for the week ended 20 May 2016. Brent for July settlement was up currently up 63 cents at $49.24 a barrel. The contract had risen 26 cents or 0.53% to settle at $48.61 a barrel during the previous trading session.

Index heavyweight and cigarette major ITC rose 2.12% to Rs 356. The stock hit a high of Rs 357.60 and a low of Rs 349.90 in intraday trade.

Bank stocks edged higher on renewed buying. Among PSU banks, Canara Bank (up 6.04%), Union Bank of India (up 2.21%), Punjab National Bank (up 2.92%), State Bank of India (up 3.21%), Andhra Bank (up 3.42%), Bank of Baroda (up 2.39%), Allahabad Bank (up 1.1%), Syndicate Bank (up 1.17%), IDBI Bank (up 2.03%), Corporation Bank (up 2.61%), Dena Bank (up 1.24%) and UCO Bank (up 3.94%) edged higher.

Bank of India shrugged off the announcement of a massive net loss from the state-run bank for Q4 March 2016. The stock gained 2.99%. The bank reported a net loss of Rs 3587.09 crore in Q4 March 2016, higher than net loss of Rs 56.14 crore in Q4 March 2015. The bank's total income fell 7.3% to Rs 11384.91 crore in Q4 March 2016 over Q4 March 2015. The bank's gross non-performing assets (NPAs) stood at Rs 49879.13 crore as on 31 March 2016 as against Rs 36519.14 crore as on 31 December 2015 and Rs 22193.24 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 13.07% as on 31 March 2016 as against 9.18% as on 31 December 2015 and 5.39% as on 31 March 2015. The ratio of net NPAs to net advances stood at 7.79% as on 31 March 2016 as against 5.25% as on 31 December 2015 and 3.36% as on 31 March 2015. The bank's provisions and contingencies rose 142.5% to Rs 5470.36 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 24 May 2016.

Among private sector banks, ICICI Bank (up 4.37%), Axis Bank (up 2.7%), Federal Bank (up 2.93%), Kotak Mahindra Bank (up 2.13%) gained.

Index heavyweight and banking major HDFC Bank rose 2.92% to Rs 1,174. The stock hit a high of Rs 1,175.50 and a low of Rs 1,141 in intraday trade.

Yes Bank rose 2.06%. The Cabinet Committee on Economic Affairs (CCEA) has cleared the bank's proposal for increase in foreign investment limit in the bank's equity capital to 74% from 41.87% without any sub-limits. The announcement hit the market after trading hours. In late April 2016, the Reserve Bank of India (RBI) had raised the ceiling on investment in the bank's equity capital by foreign institutional investors to 60% from 49% after the bank's board of directors and shareholders approved the proposal. The RBI had at time capped total foreign holding in the bank from all sources at 60%.

IndusInd Bank rose 4.91% after the private sector bank and Lohia Auto Industries signed a Memorandum of Understanding (MoU) whereby Induslnd Bank will be the preferred financier for financing Lohia Auto's diesel three wheelers. Through this partnership Induslnd bank will offer retail finance at an attractive rate of interest for all Lohia 3-wheeler models. The loan facility will be available in almost in every part of the country. The announcement was made during trading hours today, 25 May 2016.
Index heavyweight and housing finance major HDFC rose 2.96% to Rs 1,208. The stock hit a high of Rs 1,212 and a low of Rs 1,183.60 in intraday trade.

Engineering and construction major L&T advanced 3.6% to Rs 1,286.15. The stock hit high of Rs 1,296.90 and low of Rs 1,250.50 in intraday trade. L&T after market hours today, 25 May 2016 reported 18.55% rise in consolidated net profit to Rs 2453.64 crore on 17.88% rise in total income to Rs 33375.26 crore in Q4 March 2016 over Q4 March 2015.

The order inflow during Q4 March 2016 was Rs 43334 crore of which one third constituted international orders, L&T said. The order intake of L&T's infrastructure division rose just 3% at Rs 29103 crore in Q4 March 2016 over Q4 March 2015. The order intake of its hydrocarbon divsion rose sharply to Rs 4963 crore in Q4 March 2016 from Rs 699 crore in Q4 March 2015.

L&T's order book stood at Rs 249949 crore as at 31 March 2016, higher by 7% on year-on-year basis. International order book constituted 28% of the total order book.
Bharat Heavy Electricals (Bhel) gained 4.42% after the company's announcement that it has successfully commissioned the first 800 megawatts (MW) supercritical thermal unit in Karnataka, which is also the highest rating unit in the state. The unit has been commissioned at the Yeramarus Thermal Power Station (TPS) located in Raichur district of Karnataka. The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly, Bhel said during trading hours today, 25 May 2016.

Metal shares edged higher as copper prices rose in global commodities markets. Hindalco Industries (up 2.9%), Jindal Steel & Power (up 2.58%), Steel Authority of India (up 2.17%), Vedanta (up 2.27%), NMDC (up 0.67%), Hindustan Copper (up 5.96%), Hindustan Zinc (up 0.06%), Tata Steel (up 1.87%) and National Aluminium Company (up 2.95%) edged higher. JSW Steel fell 1.6%.

High Grade Copper for July 2016 delivery was currently up 0.75% at $2.082 per pound on the COMEX.

Auto stocks rose across the board. Maruti Suzuki (India) (up 3.61%), Tata Motors (up 1.94%), Escorts (up 2.07%), Hero MotoCorp (up 0.92%), Eicher Motors (up 1.78%), Mahindra & Mahindra (up 1.14%) and TVS Motor Company (up 0.22%) edged higher.
Shares of two-wheeler maker Bajaj Auto jumped 4.26% to Rs 2,486 after the company's net profit rose 29% to Rs 803 crore on 13% growth in turnover to Rs 5536 crore in Q4 March 2016 over Q4 March 2015. Operating EBITDA (earnings before interest, taxes, depreciation and amortization) before mark-to-market gains/losses on foreign currency transactions jumped 34% to Rs 1259 crore in Q4 March 2016 over Q4 March 2015. The operating EBITDA margin surged to 23.1% in Q4 March 2016 from 19.4% in Q4 March 2015. The result was announced during market hours today, 25 May 2016.

Ashok Leyland lost 4.52% after net profit dropped 66.5% to Rs 77.02 crore on 31.79% rise in total income to Rs 5987.23 crore in Q4 March 2016 over Q4 March 2015. The announcement was made during market hours today, 25 May 2016. Ashok Leyland said that the board of directors of the company at its meeting held today, 25 May 2016, approved raising of funds by issue of 13.5 crore equity shares to eligible investors including qualified institutional buyers, foreign institutions, foreign investors, nonresidents, corporate bodies, mutual funds, banks, insurance companies, pension funds or other eligible investors. The board also approved raising of funds by issue of secured/unsecured redeemable non-convertible debentures in one or more series/tranches on private placement basis for an amount upto Rs 700 crore at an interest rate that will be determined by the prevailing money market conditions at the time of borrowing subject to the approval of the shareholders.

IT stocks were in demand. TCS (up 2.21%), Hexaware Technologies (up 0.14%), Wipro (up 1.65%), Oracle Financial Services Software (up 2.42%), HCL Technologies (up 1.28%), Persistent Systems (up 0.42%) and MindTree (up 0.47%) edged higher.
Index heavyweight and IT major Infosys rose 1.64% to Rs 1,207.70. The stock hit a high of Rs 1,212.85 and a low of Rs 1,196 in intraday trade.

Tech Mahindra jumped 10.33% on reports that a domestic brokerage has raised its price target while retaining its accumulate rating on the stock after the announcement of the company's Q4 March 2016 results. The domestic brokerage reportedly said that Tech Mahindra remains its top pick among Tier I offshore IT services firms, with the company's Q4 results providing early evidence of improvement in operational/financial performance. Tech Mahindra's consolidated net profit rose 18.15% to Rs 897 crore on 2.72% rise in revenue from services to Rs 6883.70 crore in Q4 March 2016 over Q3 December 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 2.2% to Rs 1161.30 crore in Q4 March 2016 over Q3 December 2015. The EBITDA margin dropped to 16.87% in Q4 March 2016 from 16.95% in Q3 December 2015. The result was announced after market hours yesterday, 24 May 2016.

Meanwhile, the company has dropped its plan to set up a payments bank. The company had received in-principle approval from the Reserve Bank of India in August 2015 for setting up a payments bank.

Cipla lost 4.63% at Rs 472 after consolidated net profit fell 68.9% to Rs 81 crore on 5.6% growth in income from operations to Rs 3267 crore in Q4 March 2016 over Q4 March 2015. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) declined 56.9% to Rs 219 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 24 May 2016.
The Sensex and the Nifty edged higher for the second day in a row. The Sensex has gained 650.81 points or 2.57% in the two trading sessions from its close of 25230.36 on 23 May 2016. The Sensex has gained 274.55 points or 1.07% in this month so far (till 25 May 2016). The Sensex has fallen 236.37 points or 0.9% in calendar year 2016 so far (till 25 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,386.56 points or 15.05%. The Sensex is off 2,697.16 points or 9.43% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,143.57 points or 13.8% from a record high of 30,024.74 hit on 4 March 2015.

Tuesday, May 24, 2016

THE END SESSION ( 24 / 05 / 2016 )

Benchmark indices eke out small gains


An upward revision in monsoon forecast for the June-September 2016 south west monsoon season from private weather forecaster Skymet and gains in European stocks aided the upmove on the domestic bourses, with the barometer index, the S&P BSE Sensex, and the Nifty 50 index snapping a four-day losing streak. The Sensex gained 75.11 points or 0.3% to settle at 25,305.47. The Nifty rose 17.80 points or 0.23% to settle at 7,748.85. Skymet revised higher forecast for the 2016 southwest monsoon to 109% of the long period average (LPA) from 105% of the LPA predicted earlier. The announcement from Skymet hit the market towards the close of the trading session.

Shares of public sector oil marketing companies (PSU OMCs) declined on concerns surrounding a weak rupee. Novartis India surged a staggering 17% after the company said that its board of directors will consider a proposal for buyback of the company's equity shares along with the Q4 March 2016 result on 26 May 2016. Tata Power Company edged higher after the company announced strong Q4 results. Airline stocks declined as a weak rupee heightened concerns about its impact on operating costs. VRL Logistics tanked 20% after the company said its promoters may dilute a portion of their stake in the company to fund their proposed airline venture.

Private weather forecaster Skymet said that conditions are favorable for the timely onset of the southwest monsoon in Kerala. This is in contrast with state-run weather office the India Meteorological Department (IMD) predicting a delay of 6 days for the onset of the monsoon rains in Kerala this year from the normal onset date which is 1 June. The IMD also, last month, forecast good rains during the 2016 southwest monsoon season.

Skymet has cut its forecast of the quantum of rains in June 2016 to 87% of LPA from its earlier prediction of 90% of LPA. It has raised its forecast of the quantum of rains in July 2016 to 108% of LPA from earlier 105%. For August 2016, Skymet has raised its forecast to 113% of LPA from earlier 108%. For September 2016, Skymet has raised its forecast to 123% of LPA from earlier 115%.

Skymet expects the second half of the southwest monsoon season to be better than the first half. It also expects that the spell of good rainfall activities will spill over to October this year. Skymet expects good amount of rainfall in Central India and the West coast, excess rainfall in some pockets of Maharashtra and Madhya Pradesh, less rainfall in some pockets of Bihar and East Uttar Pradesh. Skymet's model suggests moderate risk of weak rainfall in Tamil Nadu, Northeast India and South Interior Karnataka.

According to Skymet, the El Niño is tapering down and it will collapse after the onset of the monsoon. There are more chances of getting into La-Niña in the latter part of this year. Skymet expects the total area under kharif foodgrains to increase by 15 to 20% in 2016 over last year. Area under oilseeds including soybean, groundnut, pulses (tur, moong and urad) and rice may increase. Area under cotton may reduce marginally. However, cotton production is expected to be better than last year. Total agricultural land under sugarcane may remain the same as previous year.

The Sensex gained 75.11 points or 0.3% to settle at 25,305.47, its highest closing level since 19 May 2016. The barometer index rose 110.11 points, or 0.43% at the day's high of 25,340.47. The Sensex fell 48.89 points, or 0.19% at the day's low of 25,181.47.
The Nifty 50 index rose 17.80 points or 0.23% to settle at 7,748.85, its highest closing level since 20 May 2016. The index rose 30.50 points, or 0.39% at the day's high of 7,761.55. The index shed 15.25 points, or 0.19% at the day's low of 7,715.80.

The market breadth indicating the overall health of the market was weak. On BSE, 1,606 hares fell and 902 shares rose. A total of 184 shares were unchanged. The BSE Mid-Cap index dropped 0.16%. The BSE Small-Cap index fell 0.65%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2599 crore, higher than turnover of Rs 2084.84 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (down 1.01%), the S&P BSE Healthcare index (down 0.88%), the S&P BSE Telecom index (down 0.66%), the S&P BSE Teck index (down 0.4%), the S&P BSE IT index (down 0.32%), the S&P BSE Capital Goods index (down 0.3%), the S&P BSE Energy index (down 0.18%), the S&P BSE Realty index (down 0.16%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.12%), the S&P BSE Consumer Durables index (down 0.08%), the S&P BSE Power index (down 0.07%), the S&P BSE Utilities index (down 0.01%), the S&P BSE Industrials index (up 0.1%), the S&P BSE FMCG index (up 0.18%), the S&P BSE Metal index (up 0.18%), the S&P BSE Basic Materials index (up 0.22%), the S&P BSE Bankex (up 0.28%) outperformed the Sensex. The S&P BSE Auto index (up 0.32%) and the S&P BSE Finance index (up 0.44%) underperformed the Sensex.

Shares of oil exploration and production (E&P) companies saw mixed trend. Cairn India (down 1.05%) and ONGC (down 0.86%) fell. Oil India rose 1.06%.

Index heavyweight Reliance Industries (RIL) rose 1.01% to Rs 939.40. The stock hit high of Rs 943.35 and low of Rs 929 in intraday trade.

Shares of public sector oil marketing companies (PSU OMCs) declined on concerns surrounding a weak rupee. HPCL (down 2.84%), BPCL (down 2.9%) and Indian Oil Corporation (down 2.15%) declined. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.

In the global commodities markets, Brent crude oil futures edged lower as concerns surrounding recent disruptions to crude production eased, renewing expectations that global supplies will continue to outpace demand. Brent for July settlement was currently down 30 cents at $48.05 a barrel. The contract had fallen 37 cents or 0.75% to settle at $48.35 a barrel during the previous trading session.

In the foreign exchange market, the rupee was currently hovering at 67.685, compared with its close of 67.4925 during the previous trading session.

Auto stocks were mixed. Tata Motors (up 1.63%), Ashok Leyland (up 2.35%), Mahindra & Mahindra (M&M) (up 0.21%) and Hero MotoCorp (up 0.28%) rose. Maruti Suzuki India (down 0.17%), Bajaj Auto (down 1.43%), Eicher Motors (down 0.48%) and TVS Motor Company (down 0.71%) declined.

The National Green Tribunal yesterday, 23 May 2016, passed an order banning registration of new diesel vehicles with capacity of 2000 cc and above except public transport and local authority vehicles in Kerala. It also directed that all diesel vehicles, which are more than 10 years old shall not be permitted to ply on the road in some major cities in Kerala to curb pollution.

Bank stocks saw mixed trend. Among private bank stocks, ICICI Bank (up 1.74%), Axis Bank (up 1.06%), HDFC Bank (up 0.26%) rose. IndusInd Bank (down 0.45%), Yes Bank (down 0.02%) and Kotak Mahindra Bank (down 0.75%) fell.

Among PSU bank stocks, Punjab National Bank (down 0.49%), Bank of Baroda (down 1.25%), IDBI Bank (down 0.23%), Bank of India (down 0.37%) dropped. Union Bank of India (up 1.52%), Canara Bank (up 0.64%) and State Bank of India (SBI) (up 0.92%) rose.

Index heavyweight and housing finance major HDFC advanced 1.33% to Rs 1,176. The stock hit high of Rs 1,177.80 and low of Rs 1,160.60 in intraday trade.

Tech Mahindra rose 0.91%. Tech Mahindra's consolidated net profit rose 18.15% to Rs 897 crore on 2.72% rise in revenue from services to Rs 6883.70 crore in Q4 March 2016 over Q3 December 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 2.2% to Rs 1161.30 crore in Q4 March 2016 over Q3 December 2015. The EBITDA margin dropped to 16.87% in Q4 March 2016 from 16.95% in Q3 December 2015. The result was announced after market hours today, 24 May 2016.

Meanwhile, the company has dropped its plan to set up a payments bank. The company had received in-principle approval from the Reserve Bank of India in August 2015 for setting up a payments bank.

Pharma stocks declined. Wockhardt (down 3.96%), Aurobindo Pharma (down 3.72%), Cadila Healthcare (down 2.05%), Divi's Laboratories (down 0.55%) and Sun Pharmaceutical Industries (down 1.57%) declined. Dr Reddy's Laboratories (up 0.08%), Glenmark Pharmaceuticals (up 0.32%) and Lupin (up 0.25%) rose.
Cipla fell 0.6% ahead of its Q4 results today, 24 May 2016.

Novartis India surged 17% after the company said that its board of directors will also consider a proposal for buyback of the company's equity shares along with the Q4 March 2016 result on 26 May 2016. The announcement was made after market hours yesterday, 23 May 2016.

Cement stocks gained on renewed buying. ACC (up 1.59%), Ambuja Cements (up 1.1%), and UltraTech Cement (up 1.4%), gained. Shree Cement fell 1.17%.

Grasim Industries rose 2.13%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Tata Power Company rose after the company announced strong Q4 results. The stock gained 1.77%. The company's consolidated net profit rose 126% to Rs 360 crore on 17% growth in revenue to Rs 9626 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 23 May 2016. Tata Power said that the company aims to increase the share of non-fossil fuel based power generation output to 30-40% by 2025, up from its earlier target of 20%.

Airline stocks declined as a weak rupee heightened concerns about its impact on operating costs. SpiceJet (down 5.36%), Jet Airways (down 3.89%) and InterGlobe Aviation (down 1.4%) declined. A weak rupee impacts aviation sector adversely as almost a third of operational expenses of aviation firms are denominated in dollars. Among the payments made in dollars, include rentals of leased aircraft, maintenance, spare parts and salary paid out to foreign crew.

VRL Logistics tanked 20% at Rs 315.10 on BSE after the company said its promoters may dilute a portion of their stake in the company to fund their proposed airline venture. The company said that promoters Vijay Sankeshwar and Anand Sankeshwar informed the board of directors of the company that they are currently proposing to enter the civil aviation industry by incorporating a separate company to undertake the business of a regional airline. The announcement was made after market hours yesterday, 23 May 2016. The promoters said that they have taken this in-principle decision after a lot of study and inputs from industry experts. They intend to promote this new airline and induct a professional management to manage the day to day operations and grow this business, the statement said. The promoters have assured the company's board that they will continue to hold a majority stake in the company. Vijay Sankeshwar and Anand Sankeshwar held 34.84% and 34.27% stake respectively in VRL Logistics as on 31 March 2016.

Tara Jewels tumbled 10.78% after the company reported consolidated net loss of Rs 5.88 crore in Q4 March 2016 compared with net profit of Rs 9.87 crore in Q4 March 2015. The result was announced after market hours yesterday, 23 May 2016. Tara Jewels' net sales rose 8.7% to Rs 573.84 crore in Q4 March 2016 over Q4 March 2015.
Shriram EPC lost 5.61% after the company reported net loss of Rs 198.28 crore in Q4 March 2016, higher than net loss of Rs 90.73 crore in Q4 March 2015. The result was announced after market hours yesterday, 23 May 2016. Shriram EPC's net sales declined 9.8% to Rs 139.72 crore in Q4 March 2016 over Q4 March 2015.

HSIL tumbled 9.19% after net profit declined 4.3% to Rs 38.10 crore on 7.1% growth in net sales to Rs 579.44 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 23 May 2016.

The Sensex and the Nifty snapped a four-day losing streak. The Sensex had fallen 543.25 points or 2.1% in the preceding four trading sessions to settle at 25,230.36 yesterday, 23 May 2016, from its close of 25,773.61 on 17 May 2016. The Sensex has fallen 301.15 points or 1.17% in this month so far (till 24 May 2016). The Sensex has fallen 812.07 points or 3.1% in calendar year 2016 so far (till 24 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 2,810.86 points or 12.49%. The Sensex is off 3,272.86 points or 11.45% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4719.27 points or 15.71% from a record high of 30,024.74 hit on 4 March 2015.

In overseas stock markets, European stocks reversed initial losses after the Federal Statistical Office in Germany said German economic growth accelerated at the start of the year helped by robust domestic demand. Confirming its earlier assessment of Europe's largest economy, Destatis said that Germany's gross domestic product grew at a quarterly rate of 0.7% in the first three months of the year, which translated into an annualized rate of 2.7%. Growth in the quarter was more than double the rate of 0.3% recorded in the fourth quarter of 2015.

Asian stocks dropped as speculation mounted that the US Federal Reserve will raise interest rates as early as next month. Investors in emerging markets are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies.

US stocks finished lower yesterday, 23 May 2016, as the prospect that interest rates might rise as soon as next month weighed on utilities shares. Philadelphia Fed President Patrick Harker said yesterday, 23 May 2016, that he could see two to three rate hikes in calendar year 2016 and that if the US economy shows sufficient strength, a June increase would be appropriate. St. Louis Fed President James Bullard said holding rates too low for too long could cause financial instability. San Francisco Fed President John Williams said on Sunday, 22 May 2016, that the presidential election in the US this year wouldn't prevent the central bank from raising interest rates and that a hike in interest rate in June remains likely.

The minutes from the US Federal Reserve's April policy meeting released last week showed that Fed policy setters discussed the possibility of a June rate increase if the economy continued to strengthen. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016. The US central bank had lifted rates in December 2015 for the first time in nearly a decade

Monday, May 23, 2016

NIFTY INTRADAY VIEW ( 24 / 05 / 2016 )

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R47837BULL78837626
R37793UP BREAKOUT78197691
R27776UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R17766SELL78367742
PIVOT7758 LAST DAYSTRONG BEAR LOW VOLATALITY
S17696BUYOPEN7814
S27686DOWN CAUTIONHIGH7821.0
S37670DOWN BREAK OUTLOW7722.0
S47625BEARCLOSE7731.05
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.28%
R26082LONGNIFTY WEEKLY VOLATALITY2.82%
R15976SHORT EXITNIFTY WEEKLY HIGH7940.0
S15765LONG EXITNIFTY WEEKLY LOW7722.0
S25659SHORTNIFTY DAY MEAN7831

THE END SESSION ( 23 / 05 )

Market drops for fourth day in a row


Stocks of public sector banks and index heavyweights HDFC and Infosys led losses for the two key benchmark indices. The barometer index, the S&P BSE Sensex, fell 71.54 points or 0.28% to settle at 25,230.36. The Nifty 50 index fell 18.65 points or 0.24% to settle at 7,731.05. High volatility was witnessed during the second half of the trading session. After extending gains in mid-afternoon trade after a sudden surge, the two key benchmark indices slipped into the red later. Volatility in European stocks triggered volatility on the domestic bourses. European stocks edged lower in volatile trade after the latest data showed slowdown in economic activity in the eurozone in this month.

With losses for the fourth straight trading session, the Nifty hit its lowest closing level in almost three weeks. The Sensex hit its lowest closing level in more than two weeks.

Shares of pharma major Lupin extended previous session's steep losses triggered by concerns surrounding its Goa facility as it has yet to resolve concerns raised by US Food and Drug Administrator's (USFDA) observations on the manufacturing unit. 

Index heavyweight and cigarette major ITC extended previous trading session's gains triggered by the company announcing a 1:2 bonus share issue at the fag end of the trading session at the time of the announcement of its Q4 March 2016 results. Multi Commodity Exchange of India (MCX) surged after the Reserve Bank of India (RBI) after trading hours on Friday, 20 May 2016, announced the removal of the restrictions placed on purchase of the company's shares by foreign institutional investors (FIIs) with immediate effect.

Bharat Heavy Electricals (Bhel) edged lower and Power Grid Corporation of India edged higher after the Bombay Stock Exchange (BSE) announced changes in the constituents of its indices as part a semi-annual reconstitution of the indices. 
National Aluminium Company (Nalco) egged higher after the company said that a meeting of the board of directors of the company will be held on 25 May 2016 to consider the proposal for buyback of equity shares of the company.

The Sensex fell 71.54 points or 0.28% to settle at 25,230.36, its lowest closing level since 6 May 2016. The Sensex fell 94.12 points, or 0.37% at the day's low of 25,207.78. The barometer index jumped 217.36 points, or 0.86% at the day's high of 25,519.26.
The Nifty fell 18.65 points or 0.24% to settle at 7,731.05, its lowest closing level since 4 May 2016. The Nifty fell 27.50 points, or 0.35% at the day's low of 7,722.20. The index rose 70.90 points, or 0.91% at the day's high of 7,820.60.

Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 0.91%), the S&P BSE Healthcare index (down 0.84%), the S&P BSE IT index (down 0.83%), the S&P BSE Realty index (down 0.71%), the S&P BSE Oil & Gas index (down 0.68%), the S&P BSE Auto index (down 0.64%), the S&P BSE Teck index (down 0.61%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.58%), the S&P BSE Energy index (down 0.53%), the S&P BSE Finance index (down 0.51%), the S&P BSE Industrials index (down 0.48%), the S&P BSE Bankex (down 0.47%), the S&P BSE Metal index (down 0.38%), the S&P BSE Basic Materials index (down 0.33%) underperformed the Sensex. The S&P BSE Consumer Durables index (down up 0.25%), the S&P BSE Power index (up 0.3%), the S&P BSE Utilities index (up 0.39%), the S&P BSE Telecom index (up 0.82%) and the S&P BSE FMCG index (up 2.12%) outperformed the Sensex.

The market breadth indicating the overall health of the market was negative. On BSE, 1,513 shares fell and 1,075 shares rose. A total of 171 shares were unchanged. The BSE Mid-Cap index fell 0.29%. The BSE Small-Cap index fell 0.38%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 2075 crore, lower than turnover of Rs 2495.19 crore registered during the previous trading session.

Index heavyweight and IT major Infosys fell 1.06% to Rs 1,189. The stock hit a high of Rs 1,204.40 and a low of Rs 1,185.55 in intraday trade.

Index heavyweight and cigarette major ITC rose 5.53% to Rs 348.20, with the stock extending previous trading session's gains triggered by the company announcing a 1:2 bonus share issue at the fag end of the trading session at the time of the announcement of its Q4 March 2016 results. The stock was volatile. The scrip hit high of Rs 354.75 and low of Rs 339.75 in intraday trade. ITC's net profit rose 5.67% to Rs 2495.20 crore on 9.49% rise in total income to Rs 10580.33 crore in Q4 March 2016 over Q4 March 2015. A foreign brokerage has reportedly raised its price target while retaining its outperform rating on the ITC stock as it views the turnaround in ITC's cigarette volume growth as a significant positive.

Bank stocks fell. Among public sector bank stocks, Bank of Baroda (down 2.62%), Syndicate Bank (down 2.92%), Dena Bank (down 0.7%), Andhra Bank (down 2%), State Bank of India (down 1.43%), Canara Bank (down 1.8%), Union Bank of India (down 0.61%), Punjab National Bank (down 1.84%), Allahabad Bank (down 0.1%) and Bank of India (down 0.8%), edged lower. Vijaya Bank (up 0.66%) and IDBI Bank (up 0.31%) edged higher.

Among private sector bank stocks, Yes Bank (down 0.55%), Federal Bank (down 1.78%), Axis Bank (down 0.89%) and HDFC Bank (down 0.55%) edged lower. ICICI Bank (up 0.34%) and Kotak Mahindra Bank (up 0.22%) rose.

IndusInd Bank fell 1.98%. IndusInd Bank during market hours today, 23 May 2016, announced that it has recently signed a corporate agency agreement with Reliance General Insurance with objective to distribute multiple options of general insurance products to its customers. Reliance General Insurance will distribute its insurance products across all the branches of IndusInd Bank, the two companies said in a joint statement. This is the first tie-up on bancassurance post the recent multi bank partner guidelines by Insurance Regulatory and Development Authority (IRDAI).
Index heavyweight and housing finance major HDFC fell 1.86% to Rs 1,158.10. The stock hit a high of Rs 1,184 and a low of Rs 1,158.10 in intraday trade.

Bharat Heavy Electricals (Bhel) edged lower and Power Grid Corporation of India edged higher after the Bombay Stock Exchange (BSE) announced changes in the constituents of its indices as part a semi-annual reconstitution of the indices. Bhel fell 0.42%. Power Grid Corporation of India rose 2.63%. Power Grid Corporation of India will replace Bhel in Sensex with effect from 20 June 2016.

Shares of pharma major Lupin extended previous session's steep losses triggered by concerns surrounding its Goa facility as it has yet to resolve concerns raised by US Food and Drug Administrator's (USFDA) observations on the manufacturing unit. The stock lost 3.27%. The scrip had plunged 9.1% to settle at Rs 1,505.15 during the previous trading session on Friday, 20 May 2016. Lupin received USFDA Form 483 for Goa facility with 9 observations during March 2016. The inspections of Lupin's Goa facility were on aspects such as inadequacy and adherence to standard operating procedures (SOP). Lupin reportedly depends on Goa facility for about 40% of its US sales.

Realty stocks declined. DLF (down 1.1%), Indiabulls Real Estate (down 1.92%), Godrej Properties (down 3.39%), Omaxe (down 0.5%), Unitech (down 0.25%), Sobha (down 0.32%), Hubtown (down 2.56%) declined. D B Realty (up 9.09%), Oberoi Realty (up 0.39%) and Housing Development and Infrastructure (up 0.43%) rose.

Multi Commodity Exchange of India (MCX) surged after the Reserve Bank of India (RBI) after trading hours on Friday, 20 May 2016, announced the removal of the restrictions placed on purchase of the company's shares by foreign institutional investors (FIIs) with immediate effect. The stock gained 6.62%. The RBI said that the aggregate shareholding of FIIs in MCX has gone below the prescribed threshold caution limit stipulated as per the current FDI policy.

National Aluminium Company (Nalco) rose 3.58% to Rs 41.90 after the company said that a meeting of the board of directors of the company will be held on 25 May 2016 to consider the proposal for buyback of equity shares of the company. The announcement was made after market hours on Friday, 20 May 2016.

Britannia Industries slumped after announcing fourth quarter results. The stock dropped 8.58%. Britannia's consolidated net profit rose 13.7% to Rs 190.23 crore on 7.8% growth in net sales to Rs 2189.83 crore in Q4 March 2016 over Q4 March 2015. Britannia Industries' revenue growth during the quarter was impacted due to phasing out of excise duty incentives available to the company. The result was announced after market hours on Friday, 20 May 2016.

Patel Engineering surged 9.62% after the company said its joint venture firm AGE-PATEL has secured orders for two projects totalling Rs 2376.85 crore. The company's share in the joint venture is 49%. Both the contracts are required to be completed within 36 months from the date of issue of letter of acceptance (LOA). The announcement was made after market hours on Friday, 20 May 2016.

TTK Prestige rose 5.78% after net profit jumped 121.51% to Rs 21.62 crore on 8.16% growth in total income to Rs 310.70 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 23 May 2016.

Cox & Kings slumped 13.81% after the company reported consolidated net loss of Rs 305.53 crore in Q4 March 2016 compared with net profit of Rs 64.56 crore in Q4 March 2015. Cox & Kings' total income fell 3.86% to Rs 482.71 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 20 May 2016. Peter Kerkar, Director, Cox & Kings said that the company focussed on re-aligning its various businesses in the year ended 31 March 2016 (FY 2016). He further said that the company has sharpened its focus on its core businesses, which have robust revenue and profitability.

Dish TV India edged lower in volatile trade after the company announced its Q4 March 2016 results. The stock fell 5.82% to Rs 88.25. Dish TV India's (Dish TV) consolidated net profit rose 1281.71% to Rs 482.77 crore on 10.08% growth in total income to Rs 821.15 crore in Q4 March 2016 over Q4 March 2015. The company's subscription revenue rose 12.6% to Rs 741 crore in Q4 March 2016 over Q4 March 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 18.1% at Rs 260.80 crore in Q4 March 2016 over Q4 March 2015. The results for Q4 March 2016 and the financial year ended 31 March 2016 (FY 2016) are not comparable with their corresponding previous periods due to the impact of increase in service tax to 14.5% from 12.36% with effect from August 2015.

The Sensex and the Nifty edged lower for the fourth day in a row. The Sensex has fallen 542.25 points or 2.1% in four trading sessions from its close of 25,773.61 on 17 May 2016. The Sensex has fallen 371.26 points or 1.44% in this month so far (till 23 May 2016). The Sensex has fallen 883.18 points or 3.38% in calendar year 2016 so far (till 23 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 2,738.75 points or 12.17%. The Sensex is off 3,345.97 points or 11.7% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,788.38 points or 15.94% from a record high of 30,024.74 hit on 4 March 2015.

In overseas stock markets, European stocks edged lower in volatile trade after the latest data showed slowdown in economic activity in the eurozone in this month. Data provider Markit said a headline measure of activity based on surveys of 5,000 companies around the eurozone, known as the composite purchasing managers index, fell to 52.9 in May from 53 in April. A reading above 50 indicates an increase in activity, while a reading below that level indicates a decline. Earlier during the global day, Asian stocks ended on a mixed note.

US stocks edged higher during the previous trading session on Friday, 20 May 2016, after strong housing data for April 2016. Existing-home sales rose 1.7% in April 2016 to a seasonally adjusted annual rate of 5.45 million, the National Association of Realtors said. Meanwhile, Boston Fed President Eric Rosengren said in an interview to a newspaper published yesterday, 22 May 2016, that the US economy is close to displaying most of the conditions needed for an interest-rate rise next month. Two weeks ago, he said rate increases should resume.

The minutes from the US Federal Reserve's April policy meeting released last week showed that Fed policy setters discussed the possibility of a June rate increase if the economy continued to strengthen. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.

Meanwhile, Reserve Bank of India Governor Dr. Raghuram Rajan said in a speech on Saturday, 21 May 2016, that with a view to limit external vulnerabilities arising from the easy and unconventional monetary policy in industrial countries, India is taking measures to control capital inflows, intervening in the foreign exchange market as a macro prudential measure to reduce volatility and maintaining sufficient foreign exchange reserves to be able to withstand a sudden stop in capital inflows. Rajan said that good economic policy is the first line of defence – including the focus on controlling fiscal deficit, reforms like the Bankruptcy Code and Aadhaar and the steady fight against inflation.

Given great uncertainty about global growth outlook, a country like India should try to take sensible measures without getting too ambitious, Rajan said. This will serve as a sound basis for strong and sustainable Indian growth as the world economy picks up, he said.