Thursday 5 September 2013

Daily Equity Market Report – September 5, 2013

Indian equity markets continued its winning streak today also and rallied on the back of the measures announced by newly appointed RBI governor Raghuram Rajan. Nifty opened 120 points above the yesterday’s close and tested 5600 level. Nifty ended the day at 5,592.95, surged 144.85 points while Sensex ended at 18,979.76 up by 412.21 points. Nifty registered over 2.5% gain today while Sensex gained by almost 2.25%.

Raghuram Rajan announced slew of measure relating to banks, with a view to accelerating long-pending reform issues. Rajan announced that Reserve Bank of India (RBI) will offer a concessional window for banks to swap FCNR dollar deposits mobilized for a minimum tenor of three years and over, at a fixed rate of 3.5% per annum for the tenor of the deposit.

In addition, the governor roughly indicated that new bank licenses are likely to be announced around January 2014. The RBI has also raised banks' current overseas borrowing limit of 50% of the unimpaired Tier I capital to 100%. He also stressed the need to reduce Statutory Liquidity Ratio.

Among the sectoral indices Bank Nifty gained 9.46% followed by CNX PSU Bank (8.66%) and CNX Finance (7.82%). Meanwhile CNX IT (-2.97%) and CNX Pharma (-0.32%) plunged as Rupee rallied almost Re. 1 against US Dollar on the RBI governor’s announcement.

Out of 50 stock of Nifty 33 stocks advanced while 17 declined.

Top 5 Nifty gainers: Axis Bank (15.41%), Kotak Bank (9.43%), SBI (9.36%), ICICI Bank (8.84%) and BOB (8.72%) were the Nifty top gainers.

Top 5 Nifty losers: SesaGoa(-6.77%), TCS (-3.63%), Infosys (-3.53%), LUPIN (-2.63%) and HCL (-1.96%) were top losers.

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