Markets mark FY'14 end with record highs

Capital goods, IT, auto and pharmaceuticals lead gains for the financial year.

Markets closed FY14 on a triumphant note with both the benchmark indices closing at record highs with the Nifty gaining past the 6,700 levels.

The benchmark indices have reported their sharpest rally in past four years during the financial year 2013-14 aided by supportive global cues and continued buying by foreign institutional investors (FII’s) on expectations of a Narendra Modi led government at the Centre post elections.

For the financial year 2013-2014, the Bombay Stock Exchange’s benchmark S&P BSE Sensex gained 18.9% at 22,386 led by capital goods, information technology (IT), auto and pharmaceuticals. The National Stock Exchange CNX Nifty ended the fiscal with a 17.9% gain at 6,704.

In the broader markets, the midcap index marginally underperformed at 16% while the smallcap index recorded a thumping outperformance with a 22% gain.

Earlier, during the fiscal 2009-10, S&P BSE Sensex and CNX Nifty had surged 80.54% and 73.76% respectively.

FIIs have made net investments of Rs 79,080 crore ($13.35 billion) in Indian equities during the financial year 2013-14, according to market regulator data.

The BSE capital goods and auto sector indices have surged 32% each, while IT and healthcare index 27% and 26% respectively

Today’s trade

For the day, the markets opened firmed but turned volatile on account of weakness in heavyweights and briefly slipped into the negative territory in noon deals. But, in the closing hour, gains in Reliance Industries, HDFC and IT heavyweights helped index close higher.

Metal index up 4% was the top sectoral gainer on expectations that any move by China to step up infrastructure spending would boost demand for industrial metals.

Consumer Durables, Auto, Realty indices were the other major sectoral gainers, up 1-3%.

Banking index was flat with a negative bias ahead of the Reserve Bank of India's (RBI) policy review tomorrow.

Capital goods, Power and FMCG indices down 0.5-0.6% were the only indices in red.

Hindalco, Tata Steel and Sesa Sterlite up 3-9% were the top gainers among Sensex-30.

Auto names trended higher with Maruti Suzuki, Mahindra & Mahindra, Bajaj Auto, Hero MotoCorp and Tata Motors up 0.5-2%.

IT heavyweights TCS and Infosys gained 1% and 0.6% while Wipro was down 1.6%.

Sun Pharma, Reliance Industries, HDFC and HUL up 1-2% were the notable gainers.

Meanwhile, ONGC, Dr Reddys Lab, Tata Power, ITC, Gail India, BHEL, L&T and ICICI Bank down 1-3% were major losers.

In individual stocks, Suzlon Energy surged 12% to Rs 11.10 on back of heavy volumes on reports that the company plans to sell shares in its German subsidiary Senvion SE, formerly known as RE Power to raise Rs 10,000-crore by listing it on the London Stock Exchange (LSE).

GM Breweries was locked at upper circuit at Rs 158.45, extending its previous day's rally on the BSE, after the company said that its board will recommend bonus issue to existing shareholders in forthcoming board meeting.

The market breadth was positive on BSE due to strength in broader markets. 1,706 tocks advanced while 1,024 stocks declined.

Global Markets

Asian stocks were up slightly in a cautious start to the week on Monday, with investors holding out hopes that China would take steps to stimulate the economy.

Japan's Nikkei share average hit a three-week closing high on Monday, with exporters leading the way on a weaker yen, but The index posted its worst quarterly performance in nearly two years. The benchmark Nikkei advanced 0.9 percent to 14,827.83, its highest level since March 12.

Hang Seng and Straits Times was up 0.4-0.5% while Shanghai Composite slipped 0.4%.

European markets were largely flat. FTSE gave off 0.2% while CAC and DAX were flat.