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Monthly Market: Markets tremble 2% in Jerky June shaking D Street walls
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Tuesday, July 9, 2013 |
| | | Market Commentary | | | | Markets tremble 2% in Jerky June shaking D Street walls | | | The Indian markets have been turbulent in June on the back of global uncertainty, weak rupee and continuous FII outflow. The Sensex tumbled 364 points and the Nifty fell 144 points.
 Major news for the month Indian Indices The month of June proved to be a challenging one for the Indian markets. The month gone by did not prove to be an astonishing one for the equities as a slew of negatives weighed on the markets. Majority of the sectors were under selling pressure. Continuing worries over capital outflows coupled with fresh weakness in the rupee cast a shadow on stock markets. Depreciation of rupee value against the dollar continued to weigh on the market sentiments. Moreover, RBI's neutral stance in its mid-quarter monetary policy review where it left the key rates unchanged further added the pressure. The month of June 2013 saw the main indices in decline mode for a major part of the month. A strong pullback rally in the last week of June helped to curb the losses and gave some hope to the bulls. The S&P BSE Sensex and the NSE Nifty ended the month with losses of 1.84% & 2.40% respectively.
Monthly Trend for the month of June: -
The Indian markets wrapped up the week ended June 07, 2013 in the red zone; the Sensex ended 1.67% lower, while the Nifty fell 1.75% in the week. Key benchmark indices dropped sharply, with investor sentiment hit by a weak rupee and negative news flow across the globe. The results of a private survey indicating slowdown in India's manufacturing activity in May 2013 further aggravated selling. Global cues too played spoil sport amid uncertainty about the US Federal Reserve's move on continuing its bond-buying initiative. The rupee hit near one-year low below 57 a dollar on Friday, June 07, 2013. The BSE Sensex declined 331.07 points to settle at 19429.23 while NSE Nifty dropped 104.95 points to settle at 5881 for the week ended June 07, 2013. -
Domestic and global woes weighed on the market sentiments in the week ended June 14, 2013. Profit booking was witnessed throughout the week, which kept the sentiments bearish. Indian markets also witnessed a sharp fall due to continuous fall in rupee against the dollar, which hit record low. However, on Friday the rupee recovered from an all time low, thus halting the downward slide in equity market. The BSE Sensex declined 1.29% to settle at 19,177.93 while NSE Nifty dropped 1.23% to settle at 5808.40 in the week ended June 14, 2013. -
The Indian markets wrapped up the week ended June 21, 2013 in the red zone led by weak rupee, FII outflow after Fed meet shattered hopes of future rate cut. Selling by FIIs in bonds and equities has sent the rupee tumbling against the dollar. The rupee hit record low 59.9850 against the dollar in intraday deals on June 20, 2013 as global investors pulled out of emerging markets broadly amid concerns over the reduction of a US program that has injected billions of dollars into the global financial system. Investor sentiments were dampened as this would force the Reserve Bank of India to defer easing of key policy rates. The BSE Sensex declined 403.69 points to settle at 18,774.24 while NSE Nifty dropped 140.75 points to settle at 5,667.65 for the week ended June 21, 2013. -
Indian markets remained volatile throughout the week ended June 28, 2013, 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 recovered from record low of 60.76 against the dollar after the data which showed that the 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. Global indices movement for the month:
All the global indices closed the month on a negative note. Shanghai Composite was the top loser for the month falling by 13.97%, followed by Hang Seng which was down by 7.1%, FTSE100 slipped 5.58%, CAC40 dipped 5.31%, DAX100 declined 4.67%, Nasdaq was down by 1.52% and Dow Jones fell 1.36%
 Sectoral and stock screening for the month:
Among the 13 sectors, only three sectors closed in the green zone while remaining ten sectors ended in red.
Top Gainers: BSE IT rose 3.13% and BSE Oil&Gas gained 2.84% and BSE TECk rose 2.12%
Top Losers: BSE CD fell by 20.28%, BSE Realty was down by 10.32% while BSE Metal fell 8.81%.
| | Among the 'A' group stocks, top three gainers were - CRISIL which was up by 18.35%, RComm was up by 11.05% and Satyam Computers ended the month up by 10.69%.
Top three losers - Gitanjali Gems down by 59.24%, MMTC down by 52.72% and Emami down by 37.25%.
FII/MF activity:
The foreign institutional investors (FIIs) sold Indian stocks worth a net of Rs9318.7 crores and the domestic investors sold Indian stocks worth a net of Rs268.8 crores in the month of June. | | TOP MOVERS (GROUP A) |  | | | | | | | | | | | | Satyam Computers | 11.80 | 10.69 | | | | | Gitanjali Gems | 236.50 | -59.24 | | | | | | | | | |
| FII/MF ACTIVITIES* |  | | | | | | Gross purchase | 58,019 | 9,582 | | | | | Net investment | -9,319 | -269 | | | | | | | | * As on June 28, 2013 | | | | | | | | FROM SHAREKHAN FUNDAMENTAL RESEARCH DESK | | | | | Jolt in June; Healing in July
Post the spike in volatility in June resulting largely from the negative global cues, the markets are finding support close to the lower end of the multi-month trading range of 5600-6100 on Nifty. With the US Federal Reserve set to pull the plug on the quantitative easing program the financial markets globally are adjusting to potential end of era of easy liquidity. The transition phase is likely to result in regular bouts of risk-on and risk-off trade driven volatility within a broad range. However, the Chinese slowdown and the renewed uncertainties in the European region are key downside risk for the equity markets. Domestically, the renewed policy assertiveness would provide some boost to the investor sentiments whereas the forthcoming quarterly result season would add to stock specific volatility. Sharekhan chooses to remain cautious.
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posted by Anonymous @ 6:52 AM  |
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