ShareKhan Newsletter Blog

 Market Commentary 

Markets end with modest gains for 2nd week 

Indian markets settled with marginal gains and remained in a narrow range throughout the week. The Sensex shut shop gaining 0.44% while the Nifty rose 0.53% for the week ended July 05, 2013.

Major Headlines for the week:

• India's forex reserves fall to $287.85 bn
• HSBC PMI marginally up in Jun
• Core sector grows 2.3% in May 2013
• HSBC Services PMI fade to 2 yr low at 51.7 

Indian indices:

Welcome to the 'Weekly Market Wrap' for July 05, 2013. This was the Twenty Seventh trading week of 2013 for the Indian markets which closed with marginal gains owing to mixed cues. Indian markets posted second consecutive weekly gains on hopes of global growth recovery after good set of data from the US. The market gained in three out of five trading sessions in the week.The S&P BSE Mid-Cap index underperformed the Sensex, rising 0.46%. The S&P BSE Small-Cap index outperformed the Sensex, rising 0.86%. 

The S&P BSE Sensex rose 100.01 points or 0.52% to 19,495.82. The NSE Nifty rose 25.70 points or 0.44% to 5,867.90. 

Events:

• The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, edged up to 50.3 in June from 50.1 in May. However, the Indian factory activity remained weak in June as output contracted for the second month running and order books shrank for the first time in over four years, a survey showed.

• The HSBC Markit Services Purchasing Managers' Index fell to 51.7 in June from May's three-month high of 53.6, in a sign that Asia's third-largest economy is still struggling to climb out of a quagmire of low growth and high inflation.

Weekly market trend from July 01, 2013 - July 05, 2013

• On July 01, 2013, the first day of the month and first trading session of the week, Indian markets closed on a strong note. The BSE Sensex rose 0.94% and the broader Nifty was up by 0.97% in trade. Indian shares recorded 3 day gaining trend to end near day's high after rising for nearly 1%, amid firm Rupee and FII inflows. The S&P BSE Sensex wrapped trade at 19577.39, up by 181.58 points while the NSE Nifty rose 56.65 points to settle at 5898.85.

• On July 02, 2013, D Street closed the bell on a negative note led by weak global cues and downfall in Indian currency during late trades. Concerned about the rupee's fall to a record low, the Reserve Bank discreetly phoned trading desks with unusually explicit messages to cut their speculative positions in the currency. The Sensex shed 113.57 points to close at 19463.82 while Nifty slipped 41.30 points to end at 5857.55.

• On July 03, 2013, the markets carried previous sessions' losses amid raising growth concerns in the Indian economy. The rupee also remained weak, trading below 60 versus the dollar after RBI issued draft guidelines that would require banks to make higher provisions and increase risk weights on exposure to companies that have unhedged foreign-currency exposure. Moreover, Indian services sector faltered in June as new business dropped in at the slowest pace in nearly two years, dashing hopes of a sustained pick-up in economic growth.

• On July 04, 2013, Domestic markets gained smartly in late-noon deals on the back of buying interest in heavyweights. Global shares also boosted investor sentiments. The market breadth stood strong. The broader markets rose in line with its benchmarks. The S&P BSE Sensex wrapped trade at 19410.84, up by 233.08 points while the NSE Nifty rose 66.05 points to settle at 5836.95.

• On July 05, 2013, Key benchmark indices continued to gain for 2nd-day on the last trading session of week, amid renewed buying interest in index heavyweight Reliance Industries and exploration major ONGC. Further, resumption of buying by foreign institutional investors (FIIs) also helped improve sentiment. The Sensex closed at 19495.82, up by 84.98 points, while the Nifty rose by 30.95 points to close at 5867.90.

Global indices
All the global markets closed green zone except Dax100 which fell 1.93%. Top gainers: Nikkei up by 4.63%, FTSE100 up by 2.57% and Nasdaq up by 2.24%.

Sectoral and stock screening
Among the 13 sectoral indices. The topmost gainers were - BSE FMCG which rose 6%, BSE HC up 2.69% and Auto gained 0.95%. The topmost losers were - BSE PSU which fell 2.20%, Bankex down 1.65% and Metal slipped 1.36%.

Looking at the 'A' group stocks, the top three gainers of the week were - Jaypee Infratech and United Breweries up by 25.30% and TTK Prestige up by 19.04%. The top three losers of the week were - Gitanjali Gems fell by 30.29%, MMTC fell by 26.33% and Wockhardt fell by 9.47%.

FII/MF activity
The foreign institutional investors (FIIs) have been the net sellers of the Indian stocks to the tune of Rs171 crore and the domestic investors sold Indian shares worth a net of Rs449.7 crore on July 04, 2013.