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Weekly Market: Five Days of pain: Markets down 3%
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Saturday, October 31, 2015 |
| | | Market Commentary | | | Five Days of pain: Markets down 3% | | Indian markets wrapped up the week ended October 30, 2015 in the red zone led by Fed caution and subdued global cues. The Sensex and the Nifty fell 2.96%-2.77% each. | |
 Major Headlines for the week:
Indian indices:
Welcome to the 'Weekly Market Wrap' for Friday, October 30, 2015, where Indian benchmark indices fell last week, with the barometer index, the S&P BSE Sensex, falling below the psychological 27,000 mark.
The Sensex and the Nifty declined in all five trading sessions during the week. Trading was volatile as traders rolled over positions in the futures & options (F&O) segment from the near month October 2015 series to November 2015 series. The October 2015 derivatives contracts expired on Thursday, 29 October 2015.
The slide for Indian stocks was triggered by increased possibility of an interest-rate hike from the US Federal Reserve at its next policy meeting in December 2015. After a hawkish statement from the Fed, the Fed-funds futures market is now pricing in 47% probability of an increase in US benchmark interest rate in December 2015, compared with a 34% chance before the announcement.
The Fed kept its benchmark interest rate unchanged near zero after the conclusion of a two-day monetary policy meeting on Wednesday, 28 October 2015. The next monetary policy review from the Fed is scheduled on 15-16 December 2015.
The S&P BSE Mid-Cap index fell 163.63 points or 1.47% to 10,974.60. The S&P BSE Small-Cap index fell 203.89 points or 1.77% to 11,315.39. The decline in both these indices was lower than the Sensex's decline in percentage terms.
Back home, the S&P BSE Sensex fell 813.98 points or 2.96% to 26,656.83 last week. The decline for the Sensex was higher in percentage terms than that for the 50-unit CNX Nifty index. The 50-unit CNX Nifty fell 229.65 points or 2.77% to 8,065.80
Weekly market trend from October 26 - October 30, 2015
October 26- Trading for the week began on a negative note. A divergent trend for various index constituents resulted in modest losses for key benchmark indices on Monday. The barometer index, the S&P BSE Sensex, fell 108.85 points or 0.40% to settle at 27,361.96. The Nifty fell 34.90 points or 0.42% to settle at 8,260.55. The Sensex and the Nifty extended losses at the fag end of the trading session after news report said tremors were felt in North India after a powerful earthquake hit northeastern Afghanistan.
October 27- Modest losses pushed the barometer index, the S&P BSE Sensex, to 1-1/2-week closing low and the 50-unit CNX Nifty index to its lowest closing level in almost two weeks on Tuesday. The Sensex fell 108.52 points or 0.40% to settle at 27,253.44. The Nifty fell 27.65 points or 0.33% to settle at 8,232.90.
October 28- Caution ahead of the outcome of a monetary policy meeting of the US Federal Reserve pulled equity key benchmark indices in India lower on Wednesday. The barometer index, the S&P BSE Sensex, fell 213.68 points or 0.78% to settle at 27,039.76. The Nifty fell 61.70 points or 0.75% to settle at 8,171.20.
October 29- Stocks of state-run companies, banking shares and index heavyweights ITC, L&T and Infosys led losses for key benchmark indices, with the barometer index, the S&P BSE Sensex, falling below the psychological 27,000 mark on Thursday. The Sensex fell 201.62 points or 0.75% to settle at 26,838.14. The 50-unit CNX Nifty fell 59.45 points or 0.73% to settle at 8,111.75. The latest slide for Indian stocks was triggered by increased possibility of an interest-rate hike from the US Federal Reserve at its next policy meeting in December 2015.
October 30- Disappointing second quarter results from cigarette major ITC and weak second quarter performance of the core engineering and construction business of L&T triggered fresh slide on the domestic bourses on Friday. The barometer index S&P BSE Sensex, lost 181.31 points or 0.68% to settle at 26,656.83. The decline for the Sensex was higher in percentage terms than that  for the 50-unit CNX Nifty index. The CNX Nifty lost 45.95 points or 0.57% to settle at 8,065.80. The Sensex and the Nifty edged lower for the 5th straight trading session.
Global indices:
Global indices ended mixed where Nikkei rose 1.37%, DAX100 rose 0.52% and Nasdaq was up 0.44%. Top losers were Hang Seng down 2.21%, FTSE100 down 1.29% and Shanghai Composite down 0.88%
 Sectoral and stock screening:
Among 13 Sectoral Indices S&P BSE CD was the only gainer up by 0.12%. Top Losers: S&P BSE CG down 4.40%, S&P BSE PSU down 3.92% and S&P BSE Realty down 3.68%
| | Looking at the 'A' group stocks, the top three gainers of the week were: BF Utilities up 14.54%, Cox & Kings up 12.71% and Indian Hotels Company up 8.66%
Top three losers of the week were: Just Dial down 23.44%, Apollo Tyres down 12.08% and SREI Infra down 11.95%
FII/MF activity:
The foreign institutional investors (FIIs) have been the net sellers of the Indian stocks to the tune of Rs24.37 crore and the domestic investors bought Indian shares worth a net of Rs43.60 crore as on October 29, 2015.
| | TOP MOVERS (GROUP A) |  | | | | | | | | BF Utilities | 576.30 | 14.54% | | | Cox & Kings | 270.05 | 12.71% | | | Indian Hotels Company | 99.10 | 8.66% | | | | | | | Apollo Tyres | 171.05 | -12.08% | | | SREI Infrastructure Finance | 44.95 | -11.95% | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 16,645.81 | 5,059.70 | | | Gross sale | 16,670.18 | 5,016.10 | | | Net investment | -24.37 | 43.60 | | | | | | | | | Data as on October 29, 2015 | | | | Market Outlook for the coming week!
In the coming week, macroeconomic data, next batch of Q2 results of India Inc., trend in global markets, flows from foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses.
Investors will closely track the next batch of Q2 results during coming week. Along with the Q2 September 2015 corporate earnings, the focus will also be on guidance from the company managements on outlook for the remaining part of the year and for the next year.
Shares of automobile companies will be in focus as companies start announcing monthly sales volume data for October 2015 from Sunday, 1 November 2015.
Shares of public sector oil marketing companies (PSU OMCs) will be in focus as a regular fuel price review is due at the month end.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) data for the month of October 2015 is due on Monday, 2 November 2015.
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posted by Anonymous @ 4:57 AM  |
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