On the day Union Minister Suresh Prabhu presented the Rail Budget 2015 in Parliament, BSE Sensex fell nearly 1 percent...
Benchmark indices closed lower on Thursday on the day of Union Minister Suresh Prabhu presented the Rail Budget 2015 and expiry.
The BSE benchmark Sensex closed 0.9% or 261.34 points lower at 28,746.65 points, while NSE’s Nifty closed 0.95% or 83.40 points lower at 8,683.85 points.
Among sectoral indices, BSE Auto (-1.4%), BSE Capital Goods (-1.3%) and BSE Healthcare (-1.17%) were among the major losers. Among Sensex scrips, Bhel (-3.47%), Sun Pharma (-2.85%) and Infosys (-2.53%)
It was a volatile day for railway stocks. After falling as much as 10% lower in the first half of the session, railway scrips ended 2-4% lower. While most market observers were positive on the budget, Andrew Holland, CEO-Investment Advisory at Ambit Capital said that while the Budget speech presented a big picture, there was lack of any specific orders for the railway industry.
Deven Choksey Managing Director at KR Choksey called it a vision-oriented budget. “The Railway Minister Suresh Prabhu has given a roadmap for the next 5 years with Rs a 8.5 lakh crore capex programme. There are also details on how they plan to execute it. The budget is passenger-friendly with budget allotment for amenities to go up by 67%. Providing coaches for travel and tour operators shows intention to invite private partnership. The budget also envisages setting up a holding company to raise infrastructure debt funds,” he said.
Rohit Gadia, Founder & CEO, CapitalVia Global Research
“The budget announced was at par with the expectation. Market reacted bearish post announcement of the budget as market has already discounted and the rail stocks had already given the rally. Its impact on the D-street will be positive as PPP, Pension funds & Banks investing for Railway development, New coaches, e-Catering etc will pave path for more job creations and more up to the mark services for the passengers. Projects worth Rs. 96,182 crore to expand capacity of 9,420 km rail lines- This will impact positively for stocks like BEML, Kalindee, Alstom and Siemens are some of the stocks which are key beneficiaries from any such move by the government. All to all the budget announced is a positive one and common men centric.
Sahaj Agrawal, Deputy Vice President- Derivatives Research, Kotak Securities
Nifty witnessed significant volatility in the month of February. Selling pressure was seen in the first half of the month which pushed the index down towards 8500. A bounce back was seen up to 8900 after which again selling pressure resumed. Nifty ended the series at 8684; down 3 percent.
FMCG and IT outperformed while Banking and Metals remained under pressure. Divergence within sectors was seen. Private banking outperformed as compared to PSU Banking space. Stock specific movements were seen in the Capital goods space.
Nifty range is seen at 8500-8850; either side break out will decide further directional movement. Open interest concentration is seen at 8500 put and 9000 call options. IndiaVix is seen at 20.58; highest level since July 2014. We advise trading long above 8500 with volatility expected to remain high. Closing below the mentioned level will invite significant selling pressure. We remain positive on IT sector and advice buying on dips. We advise accumulating specific stocks in the BFSI, Capital goods and Real Estate space.
Nifty rollover @ 80 percent vs. 3m avg 69 percent
Market rollover @ 84 percent vs. 3m avg 84 percent
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Today, market was impacted from expiry and the Railway budget. Railway budget was expected to provide guidance on the upcoming Union budget. Railway budget has proposed for some near term costs to bring long term benefits. It is more likely that market will witness a new trend, but only post the Union budget.
Market Wrap Up by Mr. Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Higher level profit booking were witnessed in the markets today as the investors were cautiously rolled over their positions ahead of the economic survey and union budget.
Railway minister pointed out that the ministry will invest Rs 8.5 lakh crore in next 5 years in his budget speech.
The cement stocks witnessed a knee-jerk reaction after the rail budget announcement of hike in freight rates for cement by an average of 2.7%.
Nifty today closed at 8683 down around 83 points. The market breadth stood negative as there were seen 1087 stocks advancing against 1735 stocks declining. The Nifty volatility index, India VIX stood at 20.5800 down around 0.93%.
Barring, the Realty and Oil & gas sector which ended flat, up around 0.33% and 0.04% all other sectors ended in red. The major losers in the sectorial front were IT and Auto which ended down around 1.43% each.
In the stocks’ front, selling was seen in Bank Baroda and IDFC, closed down around 2.91% and 2.55% respectively and on the other end the gainers were NTPC and LUPIN which closed up around 4.18% and 3.05% respectively.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 516.06 crore on Wednesday, 25 February 2015. On the other hand the DIIs were also net buyers on 25 February 2014, bought shares worth Rs 19.7 crore as per the provisional data from the stock exchanges.
The European markets were little changed and the US index futures were trading in green.
In the domestic front, tomorrow the Economic Survey will be in focus.