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Monthly Market: Decent end to 2012; Sensex, Nifty rise 0.4% in December
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Monday, January 7, 2013 |
| | | Market Commentary | | | | Decent end to 2012; Sensex, Nifty rise 0.4% in December | | | The Indian markets remained marginally strong in December on global support and persistent buying by foreign funds. The Sensex was up by 0.43% and the Nifty rose 0.45%.
 Major news for the month Indian Indices
The Indian markets rose for the second consecutive month in December 2012. Strong global cues led by positive economic data and surge in foreign fund inflows led the market to remain in the green terrain. The rally on bourses was led by healthy economic data, strong HSBC Manufacturing PMI which jumped to 5 month high and IIP for October that came above the street estimates at 8.2%. Also, India's inflation for November 2012 fell to a 10-month low at 7.24%. But, there was also some disappointment in December due to unchanged mid-quarter RBI policy review.
Monthly Trend for the month of December: -
The key benchmark indices ended the 1st week of December with marginal gains as this week proved to be a volatile one for the Indian markets with the Sensex unexpectedly closing 0.44% higher while the Nifty rising 0.47% for the week ended December 07, 2012. The major news such as HSBC manufacturing Purchasing Manager, India's services Purchasing Managers' and also the FDI Retail vote was in the focus. The major news in the week was foreign direct investment (FDI) retail vote in the Rajya Sabha. UPA government won the second parliament vote on December 07, 2012, for allowing foreign supermarkets into the country paving the way for Prime Minister Manmohan Singh to press ahead with more reforms that includes freeing up cash-strapped insurance sector. The BSE Sensex rose 85.10 points to 19424.10 in the week while, the NSE Nifty rose 27.55 points to settle at 5,907.40. -
The Indian markets reversed the gaining trend by ending the week ended December 14, 2012 in the red terrain. Volatility ruled the markets this week despite positive October IIP data and November Inflation numbers, which came below the estimates. The week gone by was full of events, which included Index of Industrial Production (IIP) for October 2012, Monthly Inflation for the month of November, Consumer Price Inflation (CPI), though the FIIs continued to remain positive for the month of December 2012. The BSE Sensex declined 106.85 points to settle at 19,317.25 while the NSE Nifty dropped 27.80 points to settle at 5,879.60 in the week ended December 14, 2012. -
The second last week of the year 2012 ended on December 21, 2012. This was an 51st trading week of 2012, where profit booking was witnessed throughout the week, which kept the sentiments bearish. Investors booked profits across the board on the back of domestic and global woes. The major events that had taken placed in the week was- RBI mid quarter monetary policy review, Foreign direct investment (FDI) inflow in India which jumped 67% in October. Adding further, global markets continued to reel under pressure on uncertainty over fiscal cliff deal. The BSE Sensex declined 371.48 points to settle at 19,242 while NSE Nifty dropped 116.25 points to close at 5847.70 in the week ended December 21, 2012. -
The Indian markets wrapped the last week December 28, 2012 of the year 2012 in the green  zone. The key indices were in consolidation mode and remained in a tight range throughout the week. In this week three new companies got listed - Credit Analysis & Research (CARE), PC Jeweller and Bharti Infratel. The Foreign Institutional Investors (FIIs) remained buyers of Indian stocks during the week. The BSE Sensex rose 202.84 points to close at 19,444.84 while the NSE Nifty gained 60.65 points to settle at 5,908.35 in the week. Global indices movement for the month:
All the global indices closed the month in the green zone. Top gainers: Shanghai Composite gained 14.60%, Nikkei up by 10.05%, Hang Seng surged 2.84%, Dax100 up by 2.79%, CAC40 rose by 2.36%, Dow Jones up by 0.60% and Nasdaq rose by 0.31%.  Sectoral and stock screening for the month:
Among the 13 sectors; five sectors ended the month in the red zone while eight sectors closed in the green zone.
Top Gainers: BSE Metal rose 6.91%, BSE Auto gained 5.66% and BSE Realty rose 5.63%.
Top Losers: BSE CD fell by 3.89%, BSE IT slipped 3.47% and BSE TECk was down by 2.83%
| | Among the 'A' group stocks: Top three gainers were - Pantaloons Retail which was up by 22.19%, Bank of India was up by 22.10% and Glenmark Pharma ended the month up by 21.06%.
Top three losers: Hexaware Tech was down by 22.01%, Astrazeneca Pharma was down by 13.69% and Titan Industries down by 8.95%.
FII/MF activity
The foreign institutional investors (FIIs) bought Indian stocks worth a net of Rs24299.2 crores and the domestic investors sold Indian stocks worth a net of Rs2698.5 crores in the month of December.
| | TOP MOVERS (GROUP A) |  | | | | | | | | Pantaloon Retail | 257.15 | 22.09 | | | Bank of Inida | 342.85 | 22.10 | | | Glenmark Pharma | 527.80 | 21.06 | | | | | Hexaware Technologies | 85.05 | -22.01 | | | Astrazeneca Pharma | 1,318.00 | -13.69 | | | Titan Industries | 283.85 | -8.95 | | | | | |
| FII/MF ACTIVITIES* |  | | | | | | Gross purchase | 67,455 | 9,978 | | | | | Net investment | 24,299 | -2,699 | | | | | | | | * As on December 31, 2012 | | | | | | | | FROM SHAREKHAN FUNDAMENTAL RESEARCH DESK | | | | | Investors will roll their eyeballs on Q3 results and RBI monetary policy. Having appreciated considerably in the past couple of months, the Indian market participants would keenly look for signs of cyclical turn around in the economy and corporate earnings to keep the momentum going in the markets.
The expected policy rate cuts by RBI in its policy review meet on Jan 29 could also provide the much needed boost to the markets. Sharekhan expects some policy action to curtail oil/fuel subsidies that would keep Oil&Gas stocks in focus in the coming weeks.
The Oil&Gas stocks have lagged the upsurge in stocks from other sectors and we expect some positive policy action to help stocks like HPCL, BPCL, ONGC, GAIL and also RIL to play catch with the markets. Overall the bias remains positive.
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