Indian stock market is trading near its lifetime high and investor community is waiting for results. While many market and technical analysts have downplayed the role of politics and have said that Indian economy is strong, there is growing concern over the next government in India.
The ongoing elections have created an uncertainty in the mind of investors. Markets are staying range-bound and waiting for election outcomes on 16 May.
The business community favors a stable government. There is growing consensus that the major opposition party BJP could make the next government. However, the AAP factor could spoil the BJP campaign. Many regional parties have also decided to keep BJP out of power. The future of the country will depend on the number of seats NDA combine will get in the elections.
Among Indian stocks, major gainers on Friday were Tata Power, Ambuja Cements, Lupin, BPCL and HCL Tech. Among major losers were Jindal Steel, Tata Steel, Larsen, Sesa Sterlite and Maruti Suzuki.
The earnings season has some positive surprises for investors. While automobile sector is suffering due to lower sales, Bajaj Auto has managed to increase its market share to 20 percent compared to 17 percent in December.
Indian Stock Markets were trading marginally higher during afternoon trade with Hero MotoCorp, Maruti Suzuki and DLF among major gainers. At 14.28 pm IST, BSE Sensex was up by 46 points at 19300 while NSE Nifty was trading higher by 10 points at 5828.
European markets have opened marginally higher. FTSE was up by 0.2 per cent at 6440. DAX and CAC were also marginally higher.
Among major gainers in today’s trade were Hero MotoCorp with gain of 4.2% at Rs 1716. Maruti Suzuki was higher by 1.8% at 1450. DLF and Larsen were up by nearly 2 per cent.
Among major losers were Jindal Steel, HUL, Tata Motors and Ambuja Cements. Reliance, ONGC and Coal India were trading marginally lower.
Indian currency was slightly higher compared to US dollar and Euro. Gold was trading at Rs 29555 for 10 grams in Mumbai market while Silver was at Rs 55050 for 1000 grams.
Indian Stock Market gained in the last two hours of trading session. The market was helped by the buying witnessed in HDFC and ITC. BSE Sensex closed 51 points higher while NSE Nifty closed 13 points higher.
Pharmaceutical major Dr Reddys Labs touched 52-week high of Rs 1921 and the stock closed at Rs 1908. Idea Cellular also touched 52-week high of Rs 112. Other stocks touching 52-week high included ING Vysya Bank, K Sera Sera, Cipla, Bank of Maharashtra, Marico, Nahar Spinning, Pantaloon Retail, Oracle Financial, RS Software and SBI.
Indian Currency gained compared to US dollar and Euro. Gold price remained flat while Silver was up by 0.4%.
Fitch Ratings has again raised the alarm against the Indian economy and growth outlook. The rating agency has cited high fiscal deficit as a reason for upcoming downgrades for Indian economy.
Finance Minister was quick to respond to Fitch’s report of future downgrades for India. He added that India is not concerned about downgrade as he is confident of containing the fiscal deficit.
Indian Stock Market closed higher on Tuesday after US managed to escape the fiscal cliff for the moment. BSE Sensex closed 154 points higher at 19580 and NSE Nifty closed 46 points higher at 5950. Next major resistance for NSE Nifty is 6000.
Among European markets, CAC was up yesterday while FTSE and DAX closed lower. US Markets are expected to remain positive in the start of New Year 2013. Markets closed with decent gains with Dow Jones gaining 1.28% and Nasdaq closing 2 per cent higher.
Punjab & Sind Bank gained 10% in today’s session after the bank announced that the board has approved the plan to raise Rs 1000 crore. The stock touched intraday high of Rs 81.75 on NSE and closed Rs 8.10 higher.
Among other major gainers were Reliance Infra, Jindal Steel, Hindalco and PNB. Among banking counters ICICI Bank, Bank of Baroda, HDFC Bank and Axis Bank closed positive.
Power Grid, NTPC, Infosys Technologies and Asian Paints were among major losers in today’s trade.
Indian currency gained smartly compared to USD. USD was down by 31 paisa at 54.68. Euro-INR was trading at 72.28.
Ambit Capital has expressed bullish view about Indian stock market with 23000 as target for BSE Sensex in coming 12 months. Saurabh Mukherjea, Head Equities, Ambit Capital said during an interview to CNBC TV18 that he expects markets to move higher. The current results are an indication of bottoming out of the earnings for Indian majors. He expects Indian markets to outperform other emerging markets.
Indian stock market was trading higher on Monday. BSE Sensex was up by 92 points at 18774 and NSE Nifty was trading higher by 22 points at 12.02 PM IST.
Among majors gainers were TCS, ICICI Bank, Mahindra & Mahindra and NTPC. Bank of Baroda, Ambuja Cements, ITC and Jindal Steel were among major losers in today’s trading session.
TCS management has expressed satisfaction over the current market condition. The outlook for the upcoming quarters is positive and the stock has been performing well on the bourses.
If the government pushes forward with reforms agenda, the investment climate in India can improve. The country faced rating downgrade from major rating agencies including S&P. If the UPA government is successful in reducing the current account deficit, the markets may look up in medium term.