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Weekly-market: Pre-Poll rally brings FII inflow; Markets up 3% for the week
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Saturday, March 29, 2014 |
| Market Commentary | | Pre-Poll rally brings FII inflow; Markets up 3% for the week | Indices maintained their North journey for the entire week; recording fresh all times highs on back of FII inflows. The Sensex shut shop 2.68% higher while the Nifty rose 3.09% for the week ended March 28, 2014 |
Major Headlines for the week: Indian indices: Welcome to the 'Weekly Market Wrap' for March 28, 2014 where Indian stocks surged to record high as foreign institutional investors (FIIs) stepped up buying. Investors are betting that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections in April-May this year. The BJP with its prime ministerial candidate Mr. Narendra Modi is considered more pro-business and a more pro-reform party than the Congress party. As chief minister for the fast-growing state of Gujarat, Mr. Modi has built a reputation for getting things done. Investors hope that if he becomes prime minister he will be better at building infrastructure, battling corruption and reducing the number of regulations that get in the way of investment. The S&P BSE Mid-Cap index gained 3.21%, outperforming the Sensex. The S&P BSE Small-Cap index rose 2.44%, underperforming the Sensex. The barometer index, the S&P BSE Sensex, hit record high above 22,300. The Sensex gained in four out of five sessions while Nifty surpassed 6700 mark by rising in all five trading sessions in the week ended 28 March 2014. The S&P BSE Sensex surged 584.65 points to 22,339.97. The 50-unit CNX Nifty jumped 201.00 points to 6,695.90, a life time high. Weekly market trend from March 24, 2014 - March 28, 2014: March 24- Indian shares jumped over 1% on Monday to record highs, surpassing their previous all-time highs hit just last week as lenders including ICICI Bank extended a recent rally boosted by strong foreign investor flows. The BSE Sensex rose 1.38% and NSE Nifty was up by 1.36%. The Sensex closed at 22055.48, up by 300.16 points, while the Nifty rose 88.60 points to close at 6583.50. March 25- Indian shares ended flat on Tuesday after hitting record highs as blue chips such as ICICI Bank extended recent gains, bolstered by buying from foreign institutional investors. The BSE Sensex fell 0.06% and NSE Nifty rose 0.09%. Nifty inched higher on Tuesday, closing at fresh life time highs amid continued strength seen in the rupee against the Dollar. The Sensex closed at 22042.72, down by 12.76 points, while the Nifty rose 6.25 points to close at 6589.75 March 26- Indian shares rose to record highs for a third straight session on Wednesday, as blue chips such as Larsen & Toubro extended recent gains, bolstered by buying from foreign investors on hopes of a recovery in the domestic economy. The BSE Sensex and NSE Nifty rose 0.18% each. Benchmark stock indices scaled new closing highs yet again with the 'hope rally' continuing on Wednesday following strong rupee and firm global cues amidst robust foreign fund inflows. The Sensex closed at 22095.30, up by 40.09 points, while the Nifty rose 11.65 points to close at 6601.40 March 27- Indian shares rose to a record high for a fourth straight session on Thursday, as state-run lenders including State Bank of India extended their recent gains on broker upgrades and on hopes of some easing at the central bank's policy review on Tuesday. The BSE Sensex gained 0.54% and NSE Nifty rose 0.61% each. Benchmarks stock indices again closed at fresh record highs as traders actively rolled over their positions in the futures & options (F&O) segment from the near-month March 2014 series to April 2014 series. The Sensex closed at 22214.37, up by 119.07 points, while the Nifty rose 40.35 points to close at 6641.75 March 28- Indian shares hit a record high for a fifth straight session on Friday as state-run lenders such as State Bank of India continued their recent rally after the central bank extended the deadline for implementing Basel III capital-raising rules. The BSE Sensex gained 0.57% and NSE Nifty rose 0.71%. The Sensex closed at 22339.97, up by 125.60 points, while the Nifty rose 54.15 points to close at 6695.90 Global indices: Gainers- Nikkei up 3.32%, Hang Seng up 2.93% and Nasdaq up 2.83%. Losers- Dax 100 down 2.61%, CAC 40 down 1.75% and FTSE 100 down 0.89%. Sectoral and stock screening: Among the 13 sectoral indices three sectors closed in the red zone while others ended in green. Top Gainers - S&P BSE PSU surged 8.17%, followed by S&P BSE Power which rose 6.71%, S&P BSE Bankex up 5.67%. Top Losers - S&P BSE HC down 2.45%, S&P BSE IT fell 1.10% and S&P BSE Teck slipped 0.16%. | Looking at the 'A' group stocks, the top three gainers of the week were - Ashok Leyland up by 20.00%, Container Corporation rose 16.37% and Torrent Power up by 14.55%. Top three losers of the week were - Zee Entertainment which fell by 6.46%, Dr. Reddy's Labs slipped by 5.35% and MRF dipped by 4.33%. FII/MF activity The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs6199.70 crore as on March 27, 2014 whereas the domestic investors sold Indian shares worth a net of Rs475.00 crore as on March 27, 2014. | TOP MOVERS (GROUP A) |  | | | | | Ashok Leyland | 22.20 | 20.00 | | Container Corp | 972.35 | 16.37 | | Torrent Power | 92.10 | 14.55 | | | | Dr Reddy's Lab | 2,628.05 | -5.35 | | | | | | | FII/MF ACTIVITIES |  | | | | Gross purchase | 19,971.0 | 3,586.2 | | Gross sale | 13,771.3 | 4,061.2 | | Net investment | 6,199.7 | -475.0 | | | | | | | | Data as on March 27, 2014 | | | Market Outlook for the coming week! In the coming week, the Reserve Bank of India's First Bi-monthly Monetary Policy Statement, 2014-15 on Tuesday, April 01, 2014, will dictate near term trend on the bourses. Trend in investment by foreign institutional investors (FIIs), trend in global markets, trend in other global emerging markets, the movement of rupee against the dollar and crude oil price movement hold key on bourses. Auto stocks will be in focus as companies from this sector will start reporting sales volume data for March 2014 starting Tuesday, April 01, 2014. PSU OMCs will be in focus as state run oil marketing companies will review the fuel prices on April 01, 2014 based on the average imported oil price in the previous fortnight. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for March 2014 on Tuesday, April 01, 2014. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for March 2014 on Thursday, April 03, 2014. On the global data front, Markit Economics will unveil HSBC China Manufacturing PMI, which gauges the business activity of China's factories, for March 2014 on Tuesday, April 01, 2014. A policy meeting of the Governing Council of the European Central Bank (ECB) will be held on Thursday, April 03, 2014, in Frankfurt to decide euro zone interest rates. | | To know more about our products and services, click here. | | Registered Office: Sharekhan Limited, 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. 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