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Weekly-market: New Era likely with New PM: Markets up 5% for the Week
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Sunday, May 18, 2014 |
| | | Market Commentary | | | New Era likely with New PM: Markets up 5% for the Week | | India's stock market closed the week on a record-breaking note as the Bharatiya Janata Party led by Narendra Modi swept the Lok Sabha election, handing the Congress party its worst ever result. The markets scaled a fresh peak on Friday, with the Sensex & Nifty gaining 5% for the week ended May 16, 2014. | |
 Major Headlines for the week:
Indian indices: Welcome to the 'Weekly Market Wrap' for May 16, 2014 where key benchmark indices rallied in the week ended Friday, 16 May 2014, on expectations the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre and that Narendra Modi will become the next Prime Minister of India. Leads and results of Lok Sabha elections on Friday, 16 May 2014, cemented those expectations as they showed that the NDA was all set to form the next government at the Centre.
The barometer index, the S&P BSE Sensex, settled at a record closing high after scaling a record high above the psychological 25,000 mark in intraday trade on Friday, 16 May 2014. The 50-unit CNX Nifty also finished at a lifetime closing high after scaling a record high above 7,500 level in intraday trade on Friday, 16 May 2014. The Sensex logged gains in four out of five trading sessions in the week just gone by.
Trends of Lok Sabha elections on Friday, 16 May 2014 showed that Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) is all set to form the next government at the Centre. The NDA was leading in 230 seats and was declared winner in 104 seats out of the total of 543 Lok Sabha seats. The Congress-led United Progressive Alliance (UPA) was leading in 46 seats and was declared winner in 16 seats. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the Congress-party-led coalition government which was in power during the past ten years.
History was re-written in India as the country found its strongest leader since Indira Gandhi and gave its most decisisive mandate since the one given to Rajiv Gandhi post his mother's assasination. The markets simultaneously carved a history of their own, with the Sensex and Nifty crossing the 25,000 and 7,400 levels respectively as the elections gave the BJP its highest mandate ever and sunk the Congress to its lowest in post-independent India.
In 2014, overseas investors have so far invested Rs6.5 billion in Indian equities, contributing to a 14% gain in the main stock indices.
The rupee rose 2.1% this week, its third consecutive weekly gain and also its biggest weekly rise since Sept. 13.
In the week ended Friday, 16 May 2014, the 30-share S&P BSE Sensex gained 1,127.51 points or 4.9% to 24,121.74, a record closing high for the barometer index. The barometer index, the S&P BSE Sensex, scaled a record high of 25,375.63 in intraday trade on Friday, 16 May 2014.
The 50-unit CNX Nifty rose 344.20 points or 5.01% to 7,203, a record closing high for the index. The index scaled a record high of 7,563.50 in intraday trade on Friday, 16 May 2014.
Weekly market trend from May 12 -May 16: -
May 12- Indian shares surged to their second consecutive record high on Monday as blue-chips such as Larsen & Toubro jumped on rising hopes that exit polls would show the Bharatiya Janata Party and its allies winning a majority in the elections. The BSE Sensex gained 2.42% and NSE Nifty rose 2.27%. The Sensex closed at 23551.00, up by 556.77 points, while the Nifty rose 155.45 points to close at 7014.25 -
May 13- India's benchmark BSE index rose as much as 2.2% to a record high on Tuesday, surpassing the key psychological level of 24,000 points as companies focused on the domestic sector surged after exit polls showed the Bharatiya Janata Party and its allies winning a majority in the elections. The BSE Sensex ended 1.36% higher and NSE Nifty rose 1.35%. The Sensex closed at 23871.23, up by 320.23 points, while the Nifty rose 94.50 points to close at 7108.75 -
May 14- Indian shares retreated from record highs hit a day earlier, snapping a four-session winning streak as investors booked profits in blue-chips such as HDFC Bank ahead of the release of election results on Friday. The BSE Sensex slipped 0.24% and NSE Nifty remained unchanged. The Sensex closed at 23815.12, down by 56.11 points, while the Nifty remained unchanged to close at 7108.75 -
May 15- Indian shares edged up on Thursday to near the record highs hit earlier this week as blue-chips such as HDFC Bank gained on hopes the Bharatiya Janata Party and its allies would win a clear majority, when election results are unveiled on Friday. The BSE Sensex gained 0.38% and NSE Nifty rose 0.20%. The Sensex closed at 23905.60, up by 90.48 points, while the Nifty rose 14.40 points to close at 7123.15 -
May 16- India's BSE index rose as much as 6.1% intraday to a record high on Friday as the Bharatiya Janata Party and its allies swept the country's elections, although shares gave up a big chunk of the gains towards the close as investors booked profits. The benchmark BSE index surged to as high as 25,375.63, before ending the day at 24,121.74. The BSE Sensex gained 0.90% and NSE Nifty rose 1.12% for the day. The cumulative market capitalisation of all the 5,373-odd companies listed on the Bombay Stock Exchange (BSE), had soared to a new peak of Rs82,02,907 crore in intra-day trades. The total market turnover was Rs4.83 lakh  crore, the third highest ever. The Sensex closed at 24121.74, up by 216.14 points, while the Nifty rose 79.85 points to close at 7203.00 Global indices:
Gainers: Hang Seng up 3.89%, Shanghai Composite up 0.76%, FTSE 100 up 0.60% and Dax 100 up 0.50%
Losers: Nikkei down 0.73%, Dow Jones down 0.55%, CAC 40 down 0.47%.
 Sectoral and stock screening: Majority of the sectors closed in green, barring S&P BSE HC down by 3.30%. Top Gainers are: S&P BSE Realty up 13.03%, S&P BSE PSU up 12.00%, S&P BSE Power up 11.86%, S&P BSE Oil & Gas up 8.98% and S&P BSE Metal up 8.41%.
| | Looking at the 'A' group stocks, the top three gainers of the week were - Union Bank of India up 35.16%, Power Finance Corporation up 32.30%, Canara Bank up 31.24%.
Top three losers of the week were - Dr. Reddy's Labs fell by 12.04%, Financial Technologies fell by 11.33% and Biocon dipped by 11.22%.
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs6036.70 crore as on May 15, 2014 and the domestic investors bought Indian shares worth a net of Rs566.50 crore as on May 09, 2014. | | TOP MOVERS (GROUP A) |  | | | | | | | | Union Bank of India | 182.80 | 35.16 | | | Power Finance Corporation | 257.65 | 32.30 | | | | | | | Dr. Reddy's Lab | 2,408.95 | -12.04 | | | Financial Technologies | 245.35 | -11.33 | | | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 21,172 | 3,786 | | | | | | | | | | | | *Data as on May 15, 2014
**Data as on May 09, 2014
| | | | Market Outlook for the coming week!
In the coming week, focus will shift to policy announcements from the new government with Lok Sahba election results out, investors' focus will shift to the likely allocation of key ministerial portfolios in the National Democratic Alliance (NDA) government and the first budget of the new government expected by July 2014.
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 for the near term trend on the bourses.
India's biggest commercial bank in terms of branch network, State Bank of India, and cigarette major ITC are scheduled to unveil Q4 March 2014 results on Friday, 23 May 2014.
With Lok Sahba election results out, investors will now be keenly watching policy announcements from the new government to drive a turnaround in the investment cycle. While campaigning for the Lok Sabha elections, Narendra Modi, who will become India's next Prime Minister, had pledged to reinvigorate the country's manufacturing sector, create more jobs and overhaul the country's inadequate infrastructure.
The Bharatiya Janata Party (BJP) in its Lok Sabha polls manifesto had promised more business-friendly policies. The BJP had said that measures for the revival of the economy are its priority if the party comes to power after elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
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posted by Anonymous @ 8:47 PM  |
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