|
|
|
Weekly-market: Indices rejoice pre election rally; Sensex, Nifty mark record high
|
|
Friday, May 9, 2014 |
| | | Market Commentary | | | Indices rejoice pre election rally; Sensex, Nifty mark record high | | Markets rallied for the week after shares hit a record high on Friday, on hopes the opposition would win a majority in elections set to conclude next week, The Sensex gained 2.63% while Nifty rose 2.44% for the week ended May 09, 2014 | |
 Major Headlines for the week:
Indian indices: Welcome to the 'Weekly Market Wrap' for May 09, 2014 where key benchmark indices rallied in the week ended Friday, 9 May 2014 on speculation the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre after Lok Sabha elections which conclude early next week.
The barometer index, the S&P BSE Sensex settled at a record closing high after scaling a record high above the psychological 23,000 mark on Friday, 9 May 2014. The 50-unit CNX Nifty also hit a record high on intraday as well as closing basis on Friday, 9 May 2014. The market logged gains in four out of five trading sessions in the week just gone by.
In the week ended Friday, 9 May 2014, the 30-share S&P BSE Sensex gained 590.34 points or 2.63% to 22,994.23, a record closing high for the barometer index. The barometer index, the S&P BSE Sensex, scaled a record high of 23,048.49 in intraday trade on Friday, 9 May 2014.
The 50-unit CNX Nifty rose 164 points or 2.44% to 6,858.80. The index hit a high of 6,871.35 in intraday trade, its lifetime high in intraday trade on Friday, 9 May 2014.
The S&P BSE Mid-Cap index rose 98.63 points or 1.34% to 7,456.09. The S&P BSE Small-Cap index gained 60.87 points or 0.8% to 7,593.68. Both these indices underperformed the Sensex.
Major event of the Week: -
India's services industry contracted for a tenth straight month in April, pushing firms to put hiring plans on hold for the first time since November, a business survey showed on Tuesday. The HSBC Services Purchasing Managers' Index, compiled by Markit, rose to 48.5 in April from 47.5 in March, but held stubbornly below the 50-mark that divides growth from contraction. -
Domestic passenger car sales declined by 10.15% to 135,433 units in April as compared to 150,737 units in the year-ago month, data showed. Weekly market trend from May 05 -May 09: -
May 05- Indian shares edged higher on Monday, recovering from a five-session losing streak as market heavyweights such as Reliance Industries recovered, although sentiment remained broadly weak ahead of the conclusion of elections later this month. The BSE Sensex gained 0.18% and NSE Nifty rose 0.07%. The Sensex closed at 22445.12, up by 41.23 points, while the Nifty rose 4.55 points to close at 6699.35 -
May 06- Indian shares rose for a second consecutive session on Tuesday to mark their highest close in a week as blue-chips such as Reliance Industries gained after foreign investors snapped a five-day selling streak in index futures. The BSE Sensex gained 0.28% and NSE Nifty rose 0.24%. The Sensex closed at 22508.42, up by 63.30 points, while the Nifty rose 15.95 points to close at 6715.30 -
May 07- India's NSE index fell nearly 1% on Wednesday to its lowest close in nearly one-and-a-half months after the rupee's rise to a one-month high and UBS' downgrade of Infosys coupled with an overnight drop in U.S. tech stocks induced selling across the IT sector. The BSE Sensex slipped 0.82% and NSE Nifty fell 0.93%. The Sensex closed at 22323.90, down by 184.52 points, while the Nifty fell 62.75 points to close at 6652.55 -
May 08- Indian shares edged up on Thursday, recovering slightly from the 1-1/2 month closing low hit in the prior session, as investors picked up some of the battered stocks but also continued to book profits ahead of crucial election results next week. The BSE Sensex gained 0.09% and NSE Nifty rose 0.11%. The Sensex closed at 22344.04, up by 20.14 points, while the Nifty rose 7.30 points to close at 6659.85 -
 May 09- Indian shares hit a record high on Friday, posting their biggest daily gains since September on hopes the opposition Bharatiya Janata Party would win a majority in elections set to conclude next week, sending blue-chips such as ICICI Bank sharply higher. The BSE Sensex gained 2.91% and NSE Nifty rose 2.99%. The Sensex closed at 22994.23, up by 650.19 points, while the Nifty rose 198.95 points to close at 6858.80 Global indices:
Gainers- CAC 40 up 1.10%, Dax 100 rose 0.54% and FTSE 100 up 0.25%.
Losers- Hang Seng down 1.79%, Nikkei fell 1.78% and Nasdaq down 1.76%  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 Bankex surged 7.02%, followed by S&P BSE CD which rose 5.81% and BSE Oil&Gas gained 5.73%
Top Losers - S&P BSE IT down 3.02%, S&P BSE TECk fell 2.85% and S&P BSE HC slipped 1.68%.
| | Looking at the 'A' group stocks, the top three gainers of the week were - Shriram City Union Finance up by 18.02%, Essar Oil rose 15.91% and Torrent Power up by 15.16%. Top three losers of the week were - Financial Technologies which fell by 20.90%, Pipavav Defence slipped by 16.62% and Jet Airways dipped by 11.55%.
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs552.60 crore as on May 07, 2014 and the domestic investors bought Indian shares worth a net of Rs312.80 crore as on May 07, 2014. | | TOP MOVERS (GROUP A) |  | | | | | | | | Shriram City Union Finance | 1,328.40 | 18.02 | | | | | Torrent Power | 118.90 | 15.16 | | | | | Financial Technologies | 262.90 | -20.90 | | | Pipavav Defence | 41.90 | -16.62 | | | Jet Airways | 238.55 | -11.55 | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 8,219 | 2,165 | | | | | | | | | | | | *Data as on May 07, 2014
| | | | Market Outlook for the coming week!
In the coming week, stock prices may see high volatility as exit polls will be out early in the week after the 9th and final phase of Lok Sabha elections concludes on Monday, 12 May 2014, and as election results will be out on Friday, 16 May 2014.
A number of prominent companies are scheduled to announce their Q4 March 2014 and/or year ended 31 March 2014 (FY 2014) results next week.
Results of exit polls predicting the outcome of the election will likely start coming in from Monday evening. The counting of votes takes places simultaneously on Friday, 16 May 2014, and the results are expected on the same day.
Investors are hoping that a stable government which will complete its full term of five years in office comes to power after the elections. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
There are expectations 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 which conclude next week. Various opinion polls have forecast that the NDA with Narendra Modi as its prime ministerial candidate is leading the race to Parliament. Most opinion polls have forecast that the NDA will be unable to form the government on its own and that it will have to rely on support from smaller regional parties to form the government. For the first time in mid-April, an opinion poll for a television news channel showed the NDA winning a narrow majority of 275 seats.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013. Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done.
Once the new government is formed after the election results, investors' focus will shift to expectations from the first budget of the new government. The first budget of the new government is likely to be tabled in Parliament by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
On the macro front, the government unveils data on industrial production for March 2014 on Monday, 12 May 2014. On the same day, the government will unveil data on inflation based on the combined consumer price index for urban and rural India for April 2014. The government will unveil data on inflation based on the wholesale price index (WPI) for April 2014 on Thursday, 15 May 2014.
| | | | 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; Fax: 67481899; E-mail: publishing@sharekhan.com; Website: www.sharekhan.com; CIN: U99999MH1995PLC087498. 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); For any complaints email at igc@sharekhan.com; Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Do's & Don'ts by MCX & NCDEX and the T & C on www.sharekhan.com before investing. | | | | "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." | | | |
|
posted by Anonymous @ 9:43 AM  |
|
|
|
|
|
