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Weekly-market: Indices surge 5% for the week; Realty, Metal hog limelight
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Saturday, June 7, 2014 |
| | | Market Commentary | | | Indices surge 5% for the week; Realty, Metal hog limelight | | Markets rallied the 1st week of June hitting the record high on Friday, as signals from the Prime Minister's Office that the government is keen to improve governance aided the rally on the bourses. The markets scaled a fresh closing peak on Friday, with the Sensex & Nifty gaining 5% for the week ended June 06, 2014 | |
 Major Headlines for the week:
Indian indices: Welcome to the 'Weekly Market Wrap' for June 06, 2014 where key benchmark indices edged higher with the Sensex and Nifty scaling new lifetime high on hopes of policy reforms in the upcoming Budget and expectations of governmental initiatives to revive the tottering economy. The market sentiment was also boosted by foreign investors who continued to mop up Indian stocks on expectations that the government will take steps for revival of the economy. The hopes of a normal monsoon, going by the predictions of the India Meteorological Department (IMD), added to the gush of liquidity-led buying on Dalal Street.
In the process, the Sensex surpassed its previous all-time high of 25,375 registered on May 16 and its previous record close of 25,019 hit on June 5.
The BSE Small-Cap index jumped 758.31 points or 8.41% to settle at 9,774.04. The BSE Mid-Cap index jumped 631.32 points or 7.45% to settle at 9,098.54. Both these indices outperformed the Sensex.
The Sensex jumped 1,179.12 points or 4.86% to settle at 25,396.46 while 50-unit CNX Nifty jumped 353.45 points or 4.88% to settle at 7,583.40 in the week ended 6 June 2014.
Events that taken place: -
Manufacturing activity inched up in May compared to the previous month, according to the widely-tracked HSBC Purchasing Managers' Index (PMI). The index for manufacturing rose marginally to 51.4 points in May from 51.3 points in April. -
The Reserve Bank of India (RBI) in the bi-monthly monetary policy review today kept the repo rate unchanged at 8% as per the street's expectations. The Cash Reserve Ratio (CRR) was also unchanged at 4% of net demand and time liabilities (NDTL). -
The HSBC Services Purchasing Managers' Index, compiled by Markit, rose to 50.2 in May from 48.5 in April, the first rise above the 50 mark that divides growth from contraction since June last year. Weekly market trend from June 02 - June 06: -
June 02: Indian shares posted their biggest daily gains in three weeks on Monday as Larsen & Toubro surged after its quarterly earnings beat estimates while state-run banks rallied on hopes the government would consider selling some of its holdings and inject capital. The BSE Sensex gained 1.93% and NSE Nifty rose 1.83% for the day. -
June 03: Indian shares rose to a record close on Tuesday as metal firms such as Tata Steel surged on improving China's factory and services data, with sentiment also supported after the central bank kept rates on hold and toned down its inflation rhetoric. The BSE Sensex gained 0.70% and NSE Nifty rose 0.72% for the day. -
June 04: Indian shares fell on Wednesday, retreating from record closing highs hit in the previous session as exporters including IT companies such as Tata Consultancy Services fell on continued churn to domestic-oriented stocks on hopes of a revival in the economy. The BSE Sensex lost 0.21% and NSE Nifty fell 0.18% for the day. -
June 05: The BSE Sensex and Nifty surged to a fresh closing high on Thursday on gains in resources stocks such as Sesa Sterlite due to continued optimism about a revival in the domestic economy. The BSE Sensex gained 0.86% and NSE Nifty rose 0.97%. -
June 06: Indian markets surged by 1.5% to mark record highs as blue-chips including oil and  gas companies such as Oil and Natural Gas Corp rose on continued optimism about policy reforms by the new Narendra Modi government. The BSE Sensex gained 1.51% and NSE Nifty rose 1.46% for the day. Global indices:
Gainers: Nikkei up by 3.04%, Nasdaq up 1.86%, CAC 40 up 1.36%, Dow Jones up 1.24% and Dax 100 up 0.44%.
Losers: Hang Seng down 0.57% and Shanghai Composite down 0.45%.  Sectoral and stock screening:
Majority of the sectors closed in green, barring S&P BSE IT down 0.64%. Topmost Gainer: S&P BSE Realty up 12.34%, S&P BSE Metal up 11.50%, S&P BSE PSU up 11.09%, S&P BSE Oil & Gas up 10.44% and S&P BSE CG up 9.56%.
| | Looking at the 'A' group stocks, the top three gainers of the week were - Suzlon Energy up 40.48%, Max India up 29.28%, Reliance Capital up 24.88%.
Top three losers of the week were - J&K Bank fell by 12.98%, HCL Technologies fell by 5.38% and Wockhardt 3.57%.
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs2353.00 crore as on May 31, 2014 and the domestic investors sold Indian shares worth a net of Rs281.70 crore as on June 05, 2014.
| | TOP MOVERS (GROUP A) |  | | | | | | | | Suzlon Energy | 31.30 | 40.48 | | | | | Reliance Capital | 654.60 | 24.88 | | | | | Jammu & Kashmir Bank | 1,601.50 | -12.98 | | | HCL Technologies | 1,327.85 | -5.38 | | | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 40,831 | 3,298 | | | | | Net investment | 2,353 | -282 | | | | | | | | *Data as on May 31, 2014
**Data as on June 05, 2014
| | | | Market Outlook for the coming week!
Crude oil price movement will be in focus as a meeting of the Organization of the Petroleum Exporting Countries (OPEC) is scheduled on Wednesday, June 11, 2014.
On the macro front, the government will unveil industrial production data for April 2014 on Thursday, (June 12, 2014).
The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for May 2014 on Thursday, (June 12, 2014).
The government will announce data on inflation based on the wholesale price index (WPI) for May 2014 on June 16, 2014.
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posted by Anonymous @ 2:42 AM  |
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