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Weekly-market: Indices fall on weak global scenario
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Monday, August 11, 2014 |
| | | Market Commentary | | | Indices fall on weak global scenario | | Indian stock markets tumble around half a percent on rising crude prices, falling rupee. The S&P BSE Sensex fell 0.60% and Nifty slipped 0.45% for the week ended August 08, 2014 | |
 Major Headlines for the week:
Indian indices:
Welcome to the 'Weekly Market Wrap' for August 08, 2014 where market declined last week as a sharp slide in rupee against the dollar and a surge in crude oil prices dampened sentiment. Higher crude oil prices affect India's fiscal and current account deficit situation adversely, since India imports around two-third of its oil requirement. Weak global cues also concerned investors. Geopolitical tensions escalated after US President Barack Obama authorized air strikes in Iraq.
The Sensex dropped in three out of the five trading sessions during the week. The market surged in the first two sessions of the week, but witnessed selling pressure in the last three consecutive sessions. Stocks surged on Tuesday, 2014, as the Reserve Bank of India (RBI) held interest rates for the third straight meeting and said it would fight inflation without derailing economic growth.
In the week ended on Friday, 8 August 2014, the S&P BSE Sensex fell 151.70 points or 0.60% to 25,329.14, its lowest closing level since 15 July 2014. The 50-unit CNX Nifty fell 34.05 points or 0.45% to 7,568.55, its lowest closing level since 15 July 2014.
The S&P BSE Mid-Cap index fell 152.15 points or 1.67% to 8,962.18 and the S&P BSE Small-Cap index fell 62.67 points or 0.63% to 9,828.30. Both these indices underperformed the Sensex.
Major events of the week: -
The Reserve Bank of India at its Monetary Policy Review today kept key policy rates unchanged, but cut the SLR by 50 bps to 22%. -
The repo rate stands unchanged at 8% and CRR at 4%. This is the second consecutive time that the rates have been left unchanged due to stubborn inflation. The Reserve bank also cut the HTM ceiling to 24%. -
India's services sector grew at a slower pace in July because of moderation in order flows. The headline HSBC Services Business Activity Index stood at 52.2 in July, lower from June's 17-month peak of 54.4. Weekly market trend from August 04 - August 08:
August 04- Indian shares ended higher on Monday, snapping two days of falls as software services exporters such as Infosys rallied on a weaker rupee while lenders gained a day before the central bank's policy review. The Sensex closed at 25723.16, up by 242.32 points, while the Nifty rose 81.05 points to close at 7683.65
August 05- Indian shares gained for a second consecutive session after the central bank lowered minimum bond holding requirements for lenders to spur investment, sending blue-chips such as mortgage lender HDFC and Tata Motors higher. The Sensex closed at 25908.01, up by 184.85 points, while the Nifty rose 62.90 points to close at 7746.55
August 06- Indian shares fell over 1% on Wednesday, snapping two days of gains, as lenders slumped on worries that a sell-off in government bonds would hit the value of their debt holdings. The Sensex closed at 25665.27, down by 242.74 points, while the Nifty fell 74.50 points to close at 7672.05
August 07- India's NSE index fell for a second consecutive session on Thursday as IT stocks such as Infosys fell after global rival Cognizant Technology Solutions Corp cut its annual revenue guidance. The Sensex closed at 25589.01, down by 76.26 points, while the Nifty fell 22.80 points to close at 7649.25.
 August 08- Sensex, Nifty fell over 1% on Friday, marking their third consecutive session of declines, as blue-chips such as L&T slumped on global risk aversion after US President Barack Obama authorised targeted air strikes in Iraq. The Sensex closed at 25329.14, down by 259.87 points, while the Nifty fell 80.70 points to close at 7568.55.
Global indices:
Top Gainers: Shanghai Composite gained 0.42%
Top Losers: Nikkei fell 4.80%, DAX100 slipped 1.86% and CAC40 dropped 1.26%
 Sectoral and stock screening:
Top Gainers: S&P BSE CD up 2.88%, S&P BSE IT rose 1.42% and S&P BSE Auto up 1.40%
Top Losers: S&P BSE Metal down 2.49%, S&P BSE Bankex fell 2.45% and S&P BSE Realty down 1.84%
| | Looking at the 'A' group stocks, the top three gainers of the week were - Crisil up 8.61%, Amara Raja Batteries up 6.09% and Tata Chemicals up 6.06%
Top three losers of the week were - Bhushan Steel fell by 44.54%, Torrent Power fell by 13.49% and Financial Technologies down 13.27%
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs761.86 crore as on August 06, 2014 and the domestic investors bought Indian shares worth a net of Rs736.60 crore as on August 05, 2014 | | TOP MOVERS (GROUP A) |  | | | | | | | | | | Amara Raja Batteries | 521.95 | 6.09 | | | Tata Chemicals | 362.45 | 6.06 | | | | | Bhushan Steel | 219.35 | -44.54 | | | Torrent Power | 123.50 | -13.49 | | | Financial Tech | 285.20 | -13.27 | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 11,309.85 | 1,727.60 | | | Gross sale | 10,547.99 | 991.00 | | | Net investment | 761.86 | 736.60 | | | | | | | | *Data as on Aug 06, 2014
**Data as on Aug 05, 2014
| | | | Market Outlook for the coming week!
In the coming week, last batch of Q1 earnings and key macroeconomic data will set the tone on the domestic bourses. Trading will be truncated next week as the market remains shut on Friday, 15 August 2014, on account of Independence Day.
The government will unveil industrial production data for June 2014 on 12 August 2014.
The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for July 2014 on 12 August 2014.
The government will announce data on inflation based on the wholesale price index (WPI) for July 2014 on 14 August 2014.
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.
In the global front, China will announce industrial production and retail sales data for July and fixed-asset investment for the first seven months of 2014 on Wednesday, 13 August 2014.
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posted by Anonymous @ 6:59 AM  |
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