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Weekly-market: Indices give up gains for the week
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Friday, June 13, 2014 |
| | | Market Commentary | | | Indices give up gains for the week | | India's stock markets ended lower on weak global scenario and profit booking. The S&P BSE Sensex fell 0.66% and Nifty slipped 0.54% for the week ended June 13, 2014 | |
 Major Headlines for the week:
Indian indices: Welcome to the 'Weekly Market Wrap' for June 13, 2014 where key benchmark indices edged lower as rise in crude oil prices amid escalating violence in Iraq triggered a sell-off on Friday, 13 June 2014. India imports majority of its crude oil requirements. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, retreated after hitting a record high in intraday trade on Wednesday, 11 June 2014. The Sensex logged gains in three out of five trading sessions in the week just gone by.
The S&P BSE Mid-Cap index fell 161.61 points or 1.78% to 8,935.93. The S&P BSE Small-Cap index declined 99.46 points or 1.01% to 9,674.58. Both these indices underperformed the Sensex.
In the week ended Friday, 13 June 2014, the 30-share S&P BSE Sensex declined 168.29 points or 0.66% to 25,228.17. The barometer index, the S&P BSE Sensex, scaled a record high of 25,725.12 in intraday trade on Wednesday, 11 June 2014.
The 50-unit CNX Nifty fell 41.30 points or 0.54% to 7,542.10. The index scaled a record high of 7,700.05 in intraday trade on Wednesday, 11 June 2014.
Major events of the week: -
Domestic passenger car sales grew by 3.08% to 1,48,577 units last month as compared with 1,44,132 units in May 2013. -
According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in May this year grew by 11.71% to 9,84,469 units as against 8,81,288 units in the year-ago period. -
Exports grew by a six-month high of 12.40% at $27.9 billion in May this year against $24.91 billion in the same a year ago. The outbound shipment was driven by 28.7 er cent increase in petroleum products and 22.09% in engineering goods, showed official figures released today. -
Imports, on the other hand, contracted 11.41% at $39.23 billion in May against $44.28 a year ago. This was partly reflective of 72% decline in gold imports. As such, trade deficit declined by 42.01% at $11.23 billion in May against $19.37 billion in the same month of 2013-14. -
April 2014 IIP inches to 13-month high of 3.4% but consumer segment remains weak. The growth in April 2014 IIP stood at 3.4% vs -0.5% in March 2014. This was driven by improved performance from manufacturing segment (2.6% vs -1.2% in April 2014). The capital goods grew at 15% YoY largely due to one off growth in cable, rubber insulators segment (showing growth of 267). Improvement in IIP data and recent pick up in exports suggests early signs of pick up in the economy. -
CPI inflation (May 2014) dips to 8.28%; expect further moderation of 100-150 bps by November - Impact: to ease pressure on bond yields and positive for Banks (especially PSUs). May 2014 CPI inflation declined to 8.28% vs 8.59% in April 2014, inching closer to RBI's target of 8% by January 2015. Core inflation, also declined to 7.74% Vs 7.8% (MoM) Weekly market trend from June 09 - June 13:
June 9- Indian shares surged to record highs on Monday as blue chips such as Coal India and Larsen & Toubro continued to rally on hopes of wide-ranging reforms by the new Narendra Modi government. The BSE Sensex gained 0.72% and NSE Nifty rose 0.94% for the day. The Sensex closed at 25580.21, up by 183.75 points, while the Nifty rose 71.20 points to close at 7654.60
June 10- Indian shares ended flat on Tuesday after hitting record highs for the third consecutive session on the back of gains in defensive stocks such as healthcare and technology firms, while profit-taking weighed on the broader market. The BSE Sensex gained 0.01% and NSE Nifty rose 0.02% for the day. The Sensex closed at 25583.69, up by 3.48 points, while the Nifty rose 1.80 points to close at 7656.40
June 11- Indian shares snapped a four-day winning streak after hitting all-time highs for the fourth session on Wednesday on profit-taking after recent outperformance in infrastructure and capital goods stocks. The BSE Sensex lost 0.43% and NSE Nifty fell 0.39% for the day. The Sensex closed at 25473.89, down by 109.80 points, while the Nifty fell 29.55 points to close at 7626.85
June 12- Indian shares edged higher on Thursday as blue-chips such as HDFC Bank rose on hopes that economic data due later in the day may show easing retail inflation and a pick-up in industrial activity. The BSE Sensex rose 0.40% and NSE Nifty gained 0.30% for the day. The Sensex closed at 25576.21, up by 102.32 points, while the Nifty rose 23.05 points to close at 7649.90
June 13- India's NSE index slumped nearly 1.5% on Friday, posting its biggest single-day fall in nearly 4-1/2 months as blue-chips such as ICICI Bank fell on risk aversion after crude oil scaled  nine-month highs on escalating violence in Iraq. The BSE Sensex slumped 1.36% and NSE Nifty fell 1.41% for the day. The Sensex closed at 25228.17, down by 348.04 points, while the Nifty fell 107.80 points to close at 7542.10
Global indices:
Gainers: Shanghai Composite up 2.01%, Hang Seng up 1.60% and Nikkei up 0.14%.
Losers: Dow Jones down 1.12%, CAC 40 down 0.58% and Nasdaq down 0.55%.
 Sectoral and stock screening:
Topmost Gainer: S&P BSE IT up 5.89%, S&P BSE HC up 4.13% and S&P BSE TECk up 3.59%.
Topmost Loser: S&P BSE Realty down 6.26%, S&P BSE PSU down 5.96%, S&P Oil & Gas down 5.22%. | | Looking at the 'A' group stocks, the top three gainers of the week were - Amara Raja up 17.84%, Strides Arcolab up 16.00%, Prestige Est up 15.44%.
Top three losers of the week were - Jaypee Infra fell by 13.77%, Jaiprakash Power fell by 11.13% and M&M Financial Services 11.06%.
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs1303.68 crore as on May 31, 2014 and the domestic investors sold Indian shares worth a net of Rs552.2 crore as on June 11, 2014. | | TOP MOVERS (GROUP A) |  | | | | | | | | | | Strides Arcolab | 610.50 | 16.00 | | | Prestige Estates | 245.55 | 15.44 | | | | | Jaypee Infra | 31.00 | -13.77 | | | JP Power Ventures | 21.55 | 11.13 | | | M&M Financial Services | 274.35 | 11.06 | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 16,093.23 | 2,676.6 | | | Gross sale | 14,789.55 | 3,228.8 | | | Net investment | 1,303.68 | -552.2 | | | | | | | | Data as on June 11, 2014
| | | | Market Outlook for the coming week!
In the coming week, corporate advance tax data for the first installment of 15 June, the progress of the monsoon rains, data on inflation based on the wholesale price index for April 2014 and the outcome of a meeting of the US Federal Reserve would determine the trend on the bourses in the near term.
Increase in global crude oil prices caused by escalating violence in Iraq may weigh on sentiment as India imports majority of its crude oil requirements. Trend in investment by foreign institutional investors, trend in global markets, trend in other global emerging markets and the movement of rupee will continue to drive sentiment on the domestic bourses.
Corporate advance tax payment for the first installment which is due by Sunday, 15 June 2014, could provide clues on Q1 June 2014 corporate earnings. Companies are required to pay not less than 15% of estimated tax liability for the full year on or before 15 June every year which is the first advance tax installment.
On the macro front, the rate of inflation based on the wholesale price index (WPI) is seen accelerating to 5.4% in May 2014, from 5.2% in April 2014, as per the media estimates.
The government will announce data on inflation based on the wholesale price index (WPI) for May 2014 at 12:00 noon on Monday, 16 June 2014. WPI inflation eased to 5.2% in April 2014, from 5.7% in March 2014, helped by a decline in fuel prices.
On the global front, the Federal Open Market Committee (FOMC) undertakes monetary policy review at a two-day meeting on Tuesday 17 June 2014 and Wednesday 18 June 2014.
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posted by Anonymous @ 2:18 PM  |
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