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Weekly-market: Ease in Inflation lifts indices nearly 3% higher
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Saturday, July 19, 2014 |
| | | Market Commentary | | | Ease in Inflation lifts indices nearly 3% higher | | Indian stock markets recoup losses of weak ago led by ease in inflation and positive move by RBI. The S&P BSE Sensex rose 2.46% and Nifty gained 2.73% for the week ended July 18, 2014 | |
 Major Headlines for the week:
Indian indices:
Welcome to the 'Weekly Market Wrap' for July 18, 2014 where key benchmark indices rose in the week ended Friday, 18 July 2014, as latest data showing retail inflation easing in June 2014, decent growth in merchandise exports in June 2014 and Reserve Bank of India's (RBI) incentives for banks to raise long term bonds for financing infrastructure projects boosted sentiment.
Easing inflation provides space for the Reserve Bank of India (RBI) to cut policy rates to revive economic growth. The market gained in four out of five trading sessions in the week just gone by.
The S&P BSE Sensex gained 617.21 points or 2.46% to 25,641.60, its highest closing level since 7 July 2014. The 50-unit CNX Nifty rose 204.30 points or 2.73% to 7663.90, its highest closing level since 7 July 2014.
The BSE Mid-Cap index gained 1.32%, underperforming the Sensex. The BSE Small-Cap index vaulted 5.08%, outperforming the Sensex.
Major events for the Week: -
India's wholesale price inflation eased to a four-month low in June after the new government curbed farm exports, but a growing risk that drought will shrivel summer crops could encourage the Reserve Bank of India (RBI) to keep interest rates on hold. -
Consumer price index (CPI)-based inflation fell to 7.31% in June, the lowest since its launch in January 2012. -
June trade deficit hit an 11-month high according to government data showed on Wednesday. India's exports in June rose 10.22% from a year earlier, helped by a pick-up in external demand and a weak currency. The trade deficit jumped to $11.76 billion last month from $11.23 billion in May, boosted by a 65% annual rise in gold imports. Weekly market trend from July 14 - July 18:
July 14- Indian shares remained under pressure on Monday, ending flat after falling in the previous four consecutive sessions as foreign investors turned sellers, hitting blue chips such as ICICI Bank and Hindustan Unilever. The Sensex closed at 25006.98, down by 17.37 points, while the Nifty fell 5.45 points to close at 7454.15
July 15- India's NSE index rose nearly 1% on Tuesday, snapping a five-day selling streak as rate-sensitive stocks such as ICICI Bank surged after inflation slowed amid a deficient monsoon and ahead of the central bank's policy review next month. The Sensex closed at 25228.65, up by 221.67 points, while the Nifty rose 72.50 points to close at 7526.65
July 16- India's NSE index rose 1.3% on Wednesday as lenders and infrastructure-related shares such as IDFC Ltd surged after the central bank exempted long-term bonds raised for the sector from reserve requirements. The Sensex closed at 25549.72, up by 321.07 points, while the Nifty rose 97.75 points to close at 7624.40
July 17- India's NSE index rose for a 3rd straight session on Thursday as lenders such as Kotak Mahindra Bank extended gains on earnings, and on upbeat sentiment as the central bank exempted long-term bonds for the infrastructure sector from reserve requirements. The BSE Sensex rose 0.04% and NSE Nifty gained 0.21% for the day. The Sensex closed at 25561.16, up by 11.44 points, while the Nifty rose 16.05 points to close at 7640.45
 July 18- Indian shares edged higher on Friday, gaining for a fourth consecutive session, after better-than-expected earnings from Tata Consultancy Services sparked a rally in IT stocks and offset global concerns over the downing of an airliner in Ukraine. The Sensex closed at 25641.56, up by 80.40 points, while the Nifty rose 23.45 points to close at 7663.90.
Global indices:
Top Gainers: Hang Seng up 0.95%, FTSE100 rose 0.89% and Shanghai Composite gained 0.59%
 Sectoral and stock screening:
Top Gainers: S&P BSE CG up 6.62%, S&P BSE Metal rose 6.54% and S&P BSE Bankex up 6.44%
Top Losers: S&P BSE FMCG was the only loser which was down by 0.07% | | Looking at the 'A' group stocks, the top three gainers of the week were - JP Infratech up 17.94%, Bharat Forge up 11.55% and MCX up 11.49%.
Top three losers of the week were - REC fell by 14.76%, Indian Hotels fell by 12.24% and PFC down 10.62%.
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs1953.29 crore and the domestic investors bought Indian shares worth a net of Rs2067 crore as on July 17, 2014. | | TOP MOVERS (GROUP A) |  | | | | | | | | | | Bharat Forge | 707.35 | 11.55 | | | | | | | Rural Electrification | 313.50 | -14.76 | | | Indian Hotels | 93.55 | -12.24 | | | Power Finance | 270.20 | -10.62 | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 15,037.78 | 4,248.6 | | | Gross sale | 13,084.49 | 2,181.6 | | | Net investment | 1,953.29 | 2,067.0 | | | | | | | | Data as on July 17, 2014
| | | | Market Outlook for the coming week!
In the coming week, next batch of Q1 earnings will set the tone on the domestic bourses amid lack of any major macroeconomic data. Trend in investment by foreign portfolio investors (FPIs), trend in global markets, trend in other global emerging markets, the movement of rupee against the dollar and crude oil price movements hold key.
Metal stocks will be in focus on Thursday, 24 July 2014 as Markit Economics will announce on that day a preliminary reading of China's HSBC PMI index for July, indicating health of China's manufacturing activity. China is the world's largest consumer of copper and aluminum.
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posted by Anonymous @ 5:42 AM  |
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