ShareKhan Newsletter Blog

 
 

 

 

Get Updates By Email


 

Preview | Pwd. by FeedBlitz

 

 

 

 

 

 

Weekly-market: Bulls outshine bears; Mkts up over 3% on lower CAD, recovery in rupee

Saturday, June 29, 2013

 Sharekhan's weekly newsletter Visit us at www.sharekhan.com
 
June 29, 2013

 Market Commentary 

Bulls outshine bears; Mkts up over 3% on lower CAD, recovery in rupee

Markets ended 3% higher, after lower-than-expected CAD eases worries about deficit funding and the strengthening rupee against the US dollar boosted market sentiment


Major Headlines for the week:

Indian indices:

Welcome to the 'Weekly Market Wrap' for June 28, 2013. This was the 26th trading session week of 2013.

The Indian indices remained volatile throughout the week, markets surged over 3%, snapping a three-week losing streak, after a steep hike in natural gas price led to a buying spree in energy shares and shortcovering in financials. The lower-than-expected current account deficit eased worries about deficit funding and the strengthening rupee against the US dollar also boosted market sentiment. The rupee has recovered from record low of 60.73 against the dollar after data showed that India's current account deficit (CAD) moderated sharply to 3.6% of GDP in Q4 of March 2013 from a historically high level of 6.7% of GDP in Q3 December 2012. The market gained in three out of five trading sessions in the week ended Friday, June 28, 2013.

In the volatile market traders rolled over positions in the futures & options (F&O) segment from June 2013 series to July 2013 series. The June 2013 F&O contracts expired on Thursday, (June 27, 2013).

The BSE Mid-Cap index fell 1.21% and the BSE Small-Cap index declined 1.29%. Both these indices underperformed the Sensex.

The S&P BSE Sensex surged 621.57 points to 19,395.81, its highest closing level since June 10, 2013 while NSE Nifty jumped 174.55 points to 5842.20, its highest closing level since June 17, 2013.

Events:
March quarter current account deficit was $18.1 billion, or 3.6% of GDP, lower than expected and below the $21.7 billion deficit a year earlier, the Reserve Bank of India said on Thursday.

Petrol price hiked on Friday (June 28, 2013) by a steep Rs1.82 a litre, the third increase in rates this month, as falling rupee made imports costlier.

Weekly market trend from June 24 - June 28, 2013:

  • Indian markets ended lower on June 24, 2013, India Indices reeled throughout the day under pressure due to fall in rupee and weakness in global market. The sentiments remains weak also due to foreign investors remained sellers for nine consecutive sessions, sparking fears of continued outflows. The Sensex shed 233.35 points to close at 18540.89 while Nifty slipped 77.40 points to end at 5590.25.

  • After Opening in red zone, on June 25, 2013, Volatile markets ended higher on Tuesday, as markets recovered on the back of positive global cues with China stocks staging a strong recovery after hitting lowest since 2009 along with positive European markets. The S&P BSE Sensex wrapped trade at 18629.15, up by 88.26 points while the NSE Nifty rose 18.85 points to settle at 5609.10.

  • On June 26, 2013, Indian equities remained highly volatile throughout the day and closed trading session in the red zone post Rupee weakness as rupee hit record low below 60 against the dollar in afternoon deals. The S&P BSE Sensex wrapped trade at 18552.12, down by 77.03 points while the NSE Nifty fell 20.40 points to settle at 5588.70.

  • On June 27, 2013, Indian markets rose 1.7% on Thursday to their highest level in a week, led by oil and gas shares ahead of the meeting of the Cabinet Committee on Economic Affairs on the issue of hike in gas prices. The broader sentiment was also supported by data showing the 2012-13 current account deficits which came in lower than expected. The rising trend was also due to with the help of gains in global markets, appreciation in rupee, gains in heavyweights. The Sensex closed at 18875.95, up by 323.83 points, while the Nifty rose by 93.65 points to close at 5682.35.

  • On June 28, 2013, Indian shares gained for second straight session, as energy shares surge after the government's approved heavy increase in gas prices and also due to recovery in rupee. The Sensex closed at 19395.85, up by 519.86 points, while the Nifty rose by 159.85 points to close at 5842.20.

Global indices:
Majority of the global markets closed the week on a positive note except, Shanghai Composite down by 4.53%. Top Gainers: Nikkei which was rose by 3.38%, Hang Seng rose by 2.66%, followed by CAC40 which surged 2.21%, Dax100 advanced by 2.18% and FTSE100 up by 1.62%

Sectoral and stock screening:
Majority of the sectoral indices closed the week in the green zone, barring BSE CD down by 5.98% and BSE FMCG fell by 0.44%. Top Gainers- BSE Oil&Gas up by 6.59%, BSE IT rose 4.06%, BSE TECk gained by 2.88%.

Looking at the 'A' group stocks, the top three gainers of the week were - Adani Enterprises up by 12.35%, United Breweries up by 11.34% and ONGC up by 9.92%. The top three losers of the week were - Gitanjali Gems fell by 53.51%, Future Retail fell by 38.47% and Emami fell by 33.27%.

FII/MF activity:
The foreign institutional investors (FIIs) have been net seller of the Indian stocks worth a net of Rs4250.8 crore, while the domestic investors were net buyers of Indian stocks to the tune of Rs379.4 crore till June 27, 2013.

TOP MOVERS (GROUP A) 
Company Price (Rs) % chg
Gainers
Adani Enterprises

205.20

12.35

United Breweries

722.60

11.34

ONGC

330.10

9.92

Losers
Gitanjali Gems

236.50

-53.51

Future Retail

90.30

-38.47

Emami

479.05

-33.27

 
 FII/MF ACTIVITIES

Rs (cr)

FII

MF

Gross purchase 13,017 2,402
Gross sale

17,268

2,022

Net investment

-4,251

379

Data as on June 27, 2013

Market Outlook for the coming week! 
In the forthcoming week, automobile and cement shares will remain on the investors' radar, as the companies from these two sectors will start unveiling monthly sales volume data for June 2013 from July 01, 2013.

On the macro front, China's HSBC Manufacturing PMI for June 2013 due on July 01, 2013 and HSBC Markit Services Purchasing Managers' Index for June 2013 scheduled on July 03, 2013 will also be closely watched. 

China's flash HSBC Purchasing Managers' Index fell to a nine month low of 48.3 in June from May's final reading of 49.2. Chinese government's official PMI for June 2013 is also due on July 01, 2013. Global markets had witnessed selling pressure recently on concerns about China's economic and financial stability.

The next major trigger for the Indian markets is Q1 results which is going to start reporting results from the month of July 2013. 

    

To know more about our products and services, click here.


Sharekhan Ltd. Regd Add: 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai - 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos. BSE-Cash-INB011073351 ; F&O-INF011073351 ; NSE - INB/INF231073330; CD - INE231073330 ; MCX Stock Exchange: INB/INF-261073333 ; CD - INE261073330 ; United Stock Exchange: CD - INE271073350 ; DP-NSDL-IN-DP-NSDL-233-2003 ; CDSL-IN-DP-CDSL-271-2004 ; PMS-INP000000662 ; Mutual Fund-ARN 20669 ; Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080 ; (MCX/TCM/CORP/0425) ; NCDEX -00132 ; (NCDEX/TCM/CORP/0142) ; NSEL-12790 

"This document has been prepared by Sharekhan Ltd. This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. Kindly note that this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. SHAREKHAN will not treat recipients as customers by virtue of their receiving this report.
The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees ("SHAREKHAN and affiliates") are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do not undertake to advise you as to any change of our views. Affiliates of Sharekhan may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. 
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject SHAREKHAN and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
SHAREKHAN & affiliates may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. SHAREKHAN may from time to time solicit from, or perform investment banking, or other services for, any company mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. Any comments or statements made herein are those of the analyst and do not necessarily reflect those of SHAREKHAN."

To unsubscribe write to myaccount@sharekhan.com

 

www.sharekhan.com to manage your newsletter subscriptions

 

posted by Anonymous @ 4:31 AM  

0 Comments:
Post a Comment
<< Home
Latest Post

Weekly-market: Weak rupee, global chaos drag mark......

Weekly-market: Global woes, Weak rupee weaken mark......

Weekly-market: Negative news flow pulls Indian mkt......

Weekly-market: Mkts take a pause after 6 winning ......

Weekly-market: Bulls victorious for 3rd straight W......

Weekly-market: Bulls cheer earnings season; Market......

Result Alert For Scrip : RELIANCE...

Monthly Market: March wraps FY13 in red; Sensex, N......

Weekly-market: April disappoints Indian mkts in 1s......

Weekly-market: Weekly markets end with minute gain......

   

ShareKhan Newsletter Blog  

All credit goes to original authors of these articles.