RTTNews - Monday, the Indian market may trade range bound amid stock-specific buying and profit taking, as investors churn their portfolios. While large-caps are clearly in an overbought zone, second-line stocks are likely to surge due to attractive valuations.
A survey of more than 175 mutual funds by Value Research showed that mid-cap and small-cap funds have generated an average return of 35.57% and 45.71%, respectively in May, compared to 28.06% returned by large-cap mutual funds. That said, if the market corrects steeply, the fall in second-line stocks could be greater than that for large-caps.
On the back of robust growth in six core industries output in May, direct tax receipts for April-May grew 5.77% from a year earlier, the Central Board of Direct Taxes said in a statement on Friday. In the month of May, net direct collections grew nearly 17% to Rs.11,919 crore from Rs.10,198 crore in the same month last year. Besides, a Labor Bureau survey covering 8 sectors showed that hiring trends improved across both the export and non-export sectors during Jan-March period.
In a significant development, the government re-appointed Montek Singh Ahluwalia as the Deputy Chairman of the Planning Commission. In an interview to a television channel, he said that the President's address has laid out a very clear agenda and the government is very serious about implementing it. The government will target a minimum growth of 7% this year, he said.
On Friday, the U.S. non-farm employment report from the labor department showed that the world's largest economy is still in a recession, but things weren't as bad as they were earlier. Non-farm payroll employment fell by 345,000 jobs in May following a revised decrease of 504,000 jobs in April. Economists had expected a decrease of about 520,000 jobs compared to the loss of 539,000 jobs originally reported for the previous month.
Last week, the Indian market extended its gains for the 13th straight week to finish at a fresh 10-month high, making it one of the best performing markets in the world thus far in the calendar year. The BSE Sensex gained 3.27% to close above the psychological 15,000 mark and the S&P CNX Nifty added 3.1%.
Stocks to Watch
Akruti City reportedly said on Friday that it plans to raise up to $500 million through the qualified institutional placement (QIP) route.
Tata Steel reported an 18% rise in its May sales to 4.69 lakh tonnes from 3.97 lakh tonnes in the same month a year ago.
Apollo Hospitals reportedly said that it had signed an agreement with Industrial Finance Corporation (IFC), the World Bank's private sector arm, for a $50 million funding to speed up its ongoing Rs.1,400 crore expansion plans.
Power Grid Corporation of India (PGCIL) is planning two bond issues for Rs 2,500 crore this fiscal to fund its capital expenditure plans, the company's chairman and managing director S.K. Chaturvedi reportedly told on the sidelines of a Siemens plant inaugural in Aurangabad on Saturday.
SBI plans to raise Rs.10,000 crore to step up its tier-1 capital, its chairman OP Bhatt said in an interview to a television channel.
TCS fixed June 17 as the record date for a bonus issue to its shareholders.
Divis Lab announced a 1:1 bonus issue and 300% dividend to its shareholders.
Suzlon Energy announced that it has completed buying Portuguese company Martifier's stake in Germany's Repower Systems.
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