Thursday 22 August 2013

Daily Equity Market Report – August 22, 2013

After incurring massive losses in previous trading sessions, Indian equity markets ended the day with handsome gains after picking up the momentum on the back of short coverings in banks, metals, oil & gas and technology stocks. The Rupee also recovered sharply from day's low as buying activity in equities picked up. Nifty leaped its intraday range with investors lapping up stocks in late afternoon trade and rose above key psychological level of 5400 mark by closing at 5408.45 (2.00%) up by 105.90 points, while Sensex also reclaimed its 18000 level zooming by 407.03 points and wrapped up the session at 18312.94 (2.27%).

It was a good day for the market. The Indian Rupee recovers from the all time low of 65.56/USD on some dollar selling by exporters and FIIs. Improvement in global sentiment also helps as metals and oil & gas stocks rallied on account of strong Chinese PMI data and a possible diesel price hike.

Shares of banking stocks staged a sharp recovery from day's lows after reports came in that in a move aimed at arresting the rise of Non-Performing Assets (NPAs) on bank balance sheets, the Finance Ministry, along with the RBI, is planning a regulatory overhaul of guidelines governing NPA recognition. This move is seen as a near term positive for banks and infrastructure stocks especially PSU banks and private banks such as Axis Bank and ICICI Bank have high exposure to infrastructure sector.

Among sectoral indices, CNX Metal surged by 7.54% gaining the most and followed by CNX Commodities (4.01%), CNX PSE (3.38%), CNX Energy (3.21%), CNX Pharma (2.76%), CNX IT (2.42%) and CNX Infra (2.35%). CNX Media was the most loosing index as plunged by -1.19% and other indices closing in red terrain were CNX Realty (-0.53%) and CNX Finance (-0.38%).

Market breadth remained positive today as 715 stocks on NSE rose against 456 declined while 72 remained unchanged.

Out of 50 stocks of Nifty index, 44 advanced against 6 declined.

Top Five Nifty gainers: Ranbaxy topped the Nifty Gainers chart and registered 16.02% gain and joined by Sesagoa (13.09%), Hindalco (11.04%), Reliance Infra (10.15%) and Tata Steel (10.01%).
 
Top Five Nifty Losers: DLF shed the most on Nifty losers list falling by 4.06% and followed by HDFC (-1.45%), HDFC Bank (-0.73%), Axis Bank (-0.66%) and ACC (-0.63%).

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