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Weekly-market: February fails to impress Indian markets in first week
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Monday, February 10, 2014 |
| | | Market Commentary | | | February fails to impress Indian markets in first week | | The first week of February 2014 remains lackluster yet again as benchmarks failed to mark big gains led by subdued domestic and global cues. The Sensex shut shop 0.67% lower while the Nifty fell 0.43% for the week ended February 07, 2014 | |
 Major Headlines for the week:
Indian indices: Welcome to the 'Weekly Market Wrap' for February 07, 2014 where market slumped after the key benchmark indices edged lower in the week gone. After Monday's slide triggered by the government revising downwards the GDP growth rate for the year ended 31 March 2013 (FY 2013) to 4.5% from 5% reported earlier, the barometer index, the BSE Sensex logged gains in the later four trading sessions in the week gone by.
High volatility was seen throughout the week as the BSE Sensex regained the psychological 20,000 mark after falling below that level in intraday trade during the week. The 50-unit CNX Nifty also regained the psychological 6,000 mark after falling below that level in intraday trade during the week.
The BSE Mid-Cap and the BSE Small-Cap indices outperformed the Sensex during the week. The S&P BSE Mid-Cap index rose 28.79 points or 0.46% to 6,336.84 and the S&P BSE Small-Cap index gained 65.41 points or 1.04% to 6,328.76.
The S&P BSE Sensex fell 137.29 points to 20,376.56. The 50-unit CNX Nifty fell 26.30 points to 6,063.20.
Major events for the week: -
The GDP grew 4.6% annually in the first half of the current fiscal year, down from 5.3% in the corresponding period a year ago. Growth slowed in almost all sectors, including services such as tourism, transport and telecoms. On 31 January 2014, the Statistics Ministry revised down GDP growth for the previous fiscal year to 4.5%, from an earlier estimate of 5%. -
The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, bounced to 51.4 in January, its highest since March, from 50.7 in the previous month. -
The seven-month downturn in services sector activity eased in January but input prices continued their relentless climb, heaping further pressure on the Reserve Bank of India, a survey showed on Wednesday. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 48.3 in January from 46.7 in December. Weekly market trend from February 03, 2014 - February 07, 2014: Feb 03- The BSE Sensex, NSE Nifty plunged over 1.4%, amid sell off in global markets, weighed down by profit booking in majority of the sectors. Indian markets cracked deeply for the entire day at their lowest level since November 2013 as weak economic data from China, the world's second largest economy, raised worries that the global growth is still struggling. The Sensex closed at 20209.26, down by 304.59 points and the Nifty fell by 87.70 points to settle at 6001.80.
Feb 04- Indian shares bounced back from a nearly four-month low hit earlier on Tuesday, erasing losses of more than 1 percent, as some blue chips such as ITC recovered on value-buying after the indexes had fallen in six out of seven previous sessions. The BSE Sensex rose 0.01% and NSE Nifty was down by 0.01%. Benchmark recovered from lower levels after benchmarks breached their 200-day moving average support levels to hit 4 month low in the intra-day session, indicating the sell-off has stopped in the short term. The Sensex closed at 20211.93, up by 2.67 points, while the Nifty fell 0.90 point to close at 6000.90.
Feb 05- India's NSE index ended higher as blue chips such as Tata Motors recovered on value-buying after the index had fallen in seven out of eight previous sessions to mark their lowest in nearly four months. The BSE Sensex rose 0.24% and NSE Nifty was up by 0.36%. Benchmark rebounded from their four-month lows to end with marginal gains on Wednesday on value buying at lower levels led by auto shares. The Sensex closed at 20261.03, up by 49.10 points, while the Nifty rose 21.50 points to close at 6022.40.
Feb 06- India's NSE index ended higher on Thursday, taking support for a third day at its 200-day moving average, as blue-chips such as ITC recovered on bargain-hunting after the index had fallen steeply over the previous two weeks. The BSE Sensex rose 0.25% and NSE Nifty was up by 0.23%. Benchmarks ended marginally higher on Thursday, amid a volatile trading session, led by gains in FMCG majors Hindustan Unilever and ITC. The Sensex closed at 20310.74, up by 49.71 points, while the Nifty rose 13.90 points to close at 6036.30.
Feb 07- India's BSE index rose for a fourth consecutive session on Friday, to close at its highest in a week, as blue-chips such as Tata Steel rose on optimism after foreign investors snapped a five-day selling streak in Indian shares on Thursday. The BSE Sensex rose 0.32% and NSE Nifty was  up by 0.45%. Benchmark indices erased their early morning gains as index heavyweights like ITC and TCS pared the gains of Sun Pharma and Tata Steel. The Sensex closed at 20376.56, up by 65.82 points, while the Nifty rose 26.90 points to close at 6063.20.
Global indices:
Among the global markets for the week ended February 07, 2014. Top three losers were Nikkei which fell 3.03%, Hang Seng declined 1.81% and Dax100 slipped 0.05%. Top three Gainers were CAC40 which gained 1.50%, FTSE100 rose 0.94% and Dow Jones up 0.61%.
 Sectoral and stock screening:
Among 13 sectoral indices, 6 closed the week in red zone. Top three gainers of the week were S&P BSE HC, which was up 2.25%, S&P BSE Auto up 1.92%, and S&P BSE Metal up 1.54%. The top three losers were S&P BSE IT down 3.25%, S&P BSE TECk dipped by 2.62% and S&P BSE Oil & Gas fell by 1.47%. | | Looking at the 'A' group stocks, the top three gainers of the week were Muthoot Finance which was up 15.91%, Motherson Sumi Systems up 15.83% and TV18 Broadcast up 15.76%. The top three losers of the week were BHEL down 9.31%, Jet Airways fell 6.48% and HDFC dipped 6.28%.
FII/MF activity:
The foreign institutional investors (FIIs) have been net sellers of the Indian stocks worth a net of Rs1086.30 crore, while the domestic investors were net buyers of Indian stocks to the tune of Rs168.00 crore during the week till February 06, 2013.
| | TOP MOVERS (GROUP A) |  | | | | | | | | Muthoot Finance | 141.70 | 15.91 | | | Motherson Sumi | 208.90 | 15.83 | | | | | | | | | | | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 10,407.5 | 1,946.7 | | | Gross sale | 11,493.8 | 1,778.7 | | | Net investment | -1,086.3 | 168.0 | | | | | | | | Data as on February 06, 2014
| | | | Market Outlook for the coming week!
This week, the last batch of Q3 December 2013 corporate earnings, macroeconomic data, trend in investment by foreign institutional investors, trend in global markets, trend in other global emerging markets and the movement of rupee against the dollar will dictate the near term movement on the domestic bourses. The Q3 earnings seasons gets over this week.
The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for the month of January 2014 on Wednesday, February 12, 2014.
The government will unveil data on inflation based on the wholesale price index (WPI) for the month of January 2014 on Friday, February 14, 2014.
Data on industrial production for December 2013 will be out on Wednesday, February 12, 2014.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on February 17, 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
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posted by Anonymous @ 8:47 AM  |
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