Sensex gains most in two weeks, up 321 points as banks, infra companies rise

After a higher start at 25,322.17, the Sensex touched day's high of 25,602.78 and closing at 25,549.72 – up 321.07 points, or 1.27 percent. This is the best single-day rise since the 325-point spurt on July 2.
  
Among lenders, IDFC jumped 8.70 percent, ICICI Bank 4.70 percent, Axis Bank 3.57 percent, SBI 2.26 percent and HDFC Bank 1.16 percent. Stocks saw heavy buying after the RBI on Tuesday evening exempted long term bonds from mandatory regulatory norms like CRR and SLR if the money raised is used for funding of such projects.
  
The market sentiment remained firm after government data showed India's exports grew by 10.22 percent to USD 26.4 billion in June this year while imports stood at USD 38.24 billion, up by 8.33 percent.
  
The Sensex had gained 221.67 points on Tuesday after retail inflation eased to a 30-month low of 7.31 percent in June. WPI inflation has already softened and factory output is getting stronger, data has showed.
  
Brokers said easing crude oil prices, a mixed trend on the other Asian bourses and a higher opening in the European markets also influenced domestic market sentiments.
  
On similar lines, the 50-share National Stock Exchange index Nifty regained the 7,600-mark by rising 97.75 points, or 1.30 percent, at 7,624.40 after touching a high of 7,640.10.
  
The real estate sector witnessed solid demand and its sectoral index notched up the best gain (4,28 pc) among peers. Shares of DLF Ltd rose by 5.82 percent, Unitech 6.82 percent, DB Realty 5.09 percent, HDIL 3.17 percent, Indiabulls Real Estate 3.65 percent, Anant Raj 4.12 percent, Oberoi Realty 5.37 percent and Sobha Developers 1.89 percent.
  
The BSE Banking index rose 2.50 percent, Metal index 2.20 percent, Capital Goods index 1.51 percent and Auto index 1.44 percent, among others.
  
Small-cap Index (2.04 percent) and Mid-cap index (1.34 percent) also gained as retail investors joined the rally.

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Sensex, Nifty rebound to close at record highs ahead of Budget

Expectations the government is prepared to tackle any crisis related to poor rains and strong global cues after better-than-expected US data and easing oil prices also boosted sentiment, traders said.

  

Gains in shares of Sensex heavyweights RIL, HDFC Bank and Infosys alone contributed over 100 points. Overall, 19 constituents in 30-share Sensex ended higher while 11 fell.

  

The BSE 30-share barometer after resuming higher, slipped into negative terrain on profit-booking in heavy-weight stocks to touch the session's low of 25,659.33.

  

However, a flurry of buying helped in bounce back to close at yet another new high of 25,962.06, a rise of 138.31 points, or 0.54 percent. It surpassed previous closing peak of 25,841.2 on July 2.

  

On Thursday, it had fallen by 17.46 points. For the week, Sensex gained 862.14 points -- the first rise in four.   

Blaming hoarders for recent spurt in food prices, Finance Minister Arun Jaitley on Friday said there was no need for panic as country has enough food stocks and promised stern action against black marketeers. Allaying fears of the impact of a delayed monsoon on prices, he said "monsoon has just started, it is a late start and it is too early to create any panic".

  

The NSE's 50-issue Nifty on Friday climbed 36.80 points, or 0.48 percent, to close at a new record high of 7,751.60, breaching previous peak closing of 7,725.15 reached on July 2. Intra-day, it touched a new life-time high of 7,758.00.

  

Oil and gas sector stocks, led by RIL and ONGC, attracted brisk buying support after reports that the Oil Ministry is likely to move the Cabinet Committee on Political Affairs (CCPA) soon with an expert panel recommendations of raising kerosene and cooking gas (LPG) rates.

  

Brokers said the sentiment remained upbeat on continued foreign fund inflows ahead of the first Budget of the Narendra Modi-led government.

  

With the indices hitting record highs, small cap and midcap stocks were also seen back in demand.

  

Meanwhile, Foreign Institutional Investors bought shares worth a net Rs 950.82 crore on Thursday.

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Sensex at 100,000 level by 2020: Karvy Stock Broking

The 30-share Sensex is hovering around 25,000 mark at present. The stock markets have witnessed strong rallies, mainly fuelled by expectations from the Narendra Modi-led BJP government.
  
According to the report, if the infrastructure cycle revives quickly, the earnings growth revival will be faster with even 25 percent compounded annual growth rate (CAGR) looking possible.
  
"A multiple rerating is also possible as cost of equity goes down in the next few years with the decrease in risk free rate. An earnings growth between 20-25 percent and multiple rerating from 15x to 16-17x in the next few years can lead to a 25 percent compounding of Sensex returns, which will take it to 100,000 levels by calendar year 2020!," it said.
  
The key index breached the crucial 25,000-mark for the first time ever on May 16 when election results gave a clear mandate to BJP. The bellwether index yesterday closed at all-time high of 24,858.59 points.
  
FIIs have reaffirmed their commitment towards Indian equities with more than USD 20 billion invested in 2013.
  
"We see 2014 bringing a new bull cycle into existence. A strong export sector, revival in investment activity, continued recovery in US and a stable euro area are significant positives for equity markets. With domestic macro-economic data also on the mend, we are aggressive buyers of Indian equity," it said.
  
For the current fiscal, it expects a Sensex earning per share (EPS) growth of around 15 percent.
  
"Despite so many negatives plaguing the economy, corrective measures by the new government can quickly revive growth. From an equity market stand-point, macro-economic revival in India will open opportunities to make strong returns in the next few years," it said.
  
The report projects a GDP growth of 6 per cent in 2014-15 and economy is expected to see a revival of growth and earnings cycle.
  
Citing past instances, the report said, the Dow experienced its most spectacular rise in history in 1980s. From a meager 777 on August 12, 1982, the index grows more than 1,500 per cent to close at 11,722.98 by January 14, 2000.
  
There is no reason that India can’t see a prolonged economic growth cycle with low inflation, it said, adding, the prolonged economic growth can create similar equity market returns in India as seen in United States in 1980s.

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Bulls take a break; Sensex tanks 476 points after three-week gains

Market sentiment remained weak as overseas investors were net sellers in the first four sessions of the week.
   
The Sensex resumed higher at 24,693.89 and once again crossed 25,000 mark to quote at 25,175.22 on strong initial buying before the swearing-in of Narendra Modi as Prime Minister on Monday.
   
The 30-share index, however, declined afterwards to 24,163.62 on profit-booking before finishing the week at 24,217.34, showing a loss of 476.01 points, or 1.93 percent over the previous week's close.
   

In the last three weeks, the key BSE barometer had gained a whopping 2,289.46 points, or 10.22 percent.
   
The NSE 50-share Nifty tumbled by 137.15 points, or 1.86 percent, to end at 7,229.95. It had gained 672.30 points, or 10.04 percent, in the previous three weeks, which were dominated by election-related developments.
   
"Investors preferred to remain on sidelines ahead of GDP data, which came at 4.7 percent for 2013-14 announced on late Friday (after market hours), and RBI policy review next week," said Jayant Manglik, President-retail distribution, Religare Securities.
   
Going ahead, RBI's monetary policy on June 3 and the first Budget of the Modi Government shall be major triggers for the market, according to Rakesh Goyal, Senior Vice-President, Bonanza Portfolio.

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