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weekly market: Volatile Week; Small Losses: Midcaps Underperform
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Friday, January 22, 2016 |
| | | Market Commentary | | | Volatile Week; Small Losses: Midcaps Underperform | | The Indian markets registered another weekly loss led by global setback and fall in Oil prices. The Sensex and Nifty fell 0.08%-0.21% each for the week ended January 22, 2016. | |
 Major Headlines for the week:
Economic: Earnings: Indian indices:
Welcome to the 'Weekly Market Wrap' for Friday, January 22, 2016 where Indian key benchmark indices settled with small losses. A strong recovery on the bourses on final trading session of the week triggered by rebound in crude oil prices and global stocks helped recoup almost entire losses suffered during earlier sessions of the week.
The barometer index, the S&P BSE Sensex managed to regain psychological 24,000 mark after earlier falling below that mark after bourses suffered heavy losses in line with drop in global stocks triggered by concerns over plummeting oil prices and worries over global economic growth. Key indices fell in three out of five sessions of the week.
The BSE Mid-Cap index dropped 1.45%. The BSE Small-Cap index shed 1.71%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The Sensex fell 19.38 points or 0.08% to settle at 24,435.66. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty shed 15.35 points or 0.21% to settle at 7,422.45.
Weekly market trend from January 18 - January 22, 2016
Jan 18: Indian stocks posted their lowest close in 20 months on Monday, dragged down by index heavyweight Reliance Industries after crude oil fell to its lowest since 2003, while data showed the country's exports shrunk for a 13th straight month. The S&P BSE Sensex and CNX Nifty ended 1.09%-1.17% lower each.
Jan 19: Indian shares rose on Tuesday, snapping a three-session losing streak as beaten-down banking and financial stocks and Reliance Industries recovered, while sentiment was also supported by hopes for stimulus measures in China. The S&P BSE Sensex and CNX Nifty ended 1.21%-1.14% higher each.
Jan 20: Indian stocks ended at a fresh 20-month low on Wednesday dropping to their weakest since before the election of Prime Minister Narendra Modi on increasing concerns the country will be hit hard by the growing turmoil in global markets. The S&P BSE Sensex and CNX Nifty ended 1.71%-1.69% lower each.
Jan 21: Indian shares swung between gains and losses on Thursday as some sectors such as banks recovered from recent losses although sentiment remained weak as oil prices continued to fall, hitting Asian markets. The S&P BSE Sensex and CNX Nifty ended 0.41%-0.44% lower each.
Jan 22: Indian shares ended 2 percent higher on Friday, positing their biggest single-day percentage gain since October as hints of more stimulus measures from the European Central Bank  lifted global markets, but still marked a third weekly fall. Snapping three-day losing streak, the 30-share BSE SENSEX closed at 24435.66, up by 473.45 points or by 1.98 per cent and the NSE Nifty ended at 7422.45, up by 145.65 points or by 2 per cent. Global indices:
Most of the global markets ended in red with Hang Seng down 2.26%, Nikkei down 1.10% and Dow Jones fell 0.66% whereas Shanghai Composite rose 0.54%, DAX100 gained by 0.30%.  Sectoral and stock screening:
All the sectors ended on a mixed note where S&P BSE Bankex rose 2.25%, S&P BSE CG rose 1.15% and S&P BSE CD rose 1.15%. The top losers were: S&P BSE Oil&Gas down 3.45%, S&P BSE Realty fell 2.74%, S&P BSE FMCG down 2.72% and S&P BSE PSU fell 2.05%.
| | Looking at the 'A' group stocks, the top three gainers of the week were: Axis Bank up 13.50%, Religare rose 10.47% and Gail up 9.31%.
Top three losers of the week were: Jet Airways down 12.80%, M&M Finance fell 11.58% and KEC was down 11.02%. FII/MF activity:
The foreign institutional investors (FIIs) have been the net sellers of the Indian stocks to the tune of Rs3909.87 crore and the domestic investors bought Indian shares worth a net of Rs1498.50 crore as on January 20, 2016.
| | TOP MOVERS (GROUP A) |  | | | | | | | | | | | | | | | | | | M&M Finance | 200.00 | -11.58 | | | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 9,709.03 | 4,162.6 | | | Gross sale | 13,618.9 | 2,664.1 | | | Net investment | -3,909.87 | 1498.50 | | | | | | | | | As on January 20, 2016 | | | | Market Outlook for the coming week!
In the coming week, the two global events scheduled are monetary policy meetings of the Federal Open Market Committee (FOMC) and the Bank of Japan. Closer home, some prominent companies are scheduled to announce their third quarter results next week.
Volatility may increase as traders roll over positions in the futures & options (F&O) segment from the near month January 2016 series to February 2016 series. The near month January 2016 derivatives contracts are set to expire on January 28, 2016.
The companies are scheduled to announce their third quarter results next week.
The initial public offer (IPO) of Precision Camshafts opens for bidding through the book building route on January 27, 2016. The price band for the IPO has been fixed at Rs180-186 per share. The bidding for the IPO concludes on January 29, 2016.
Precision Camshafts is one of the world's leading manufacturers of camshafts, a critical engine component in the passenger vehicle segment.
The IPO is a combination of fresh issue of shares and offer for sale by promoters, a promoter group company and one of the directors. The proceeds of the fresh issue will be used for expansion.
The company proposes to utilize Rs200 crore from the net proceeds of the IPO for establishment of a new machine shop for ductile iron camshafts at its existing export oriented unit (EOU) situated at Solapur in Maharashtra.
On the global front, the FOMC is widely expected to keep US interest rates unchanged after the conclusion of a two-day monetary policy meeting on 26-27 January 2016. A two day policy meeting of the Bank of Japan is scheduled on 28-29 January 2016. | | | | To know more about our products and services, click here. |  | REGISTRATION DETAILS Regd Add: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai - 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos. BSE - INB/INF011073351 ; BSE- CD ; NSE - INB/INF231073330 ; CD-INE231073330 ; MCX Stock Exchange - INB/INF261073333 ; CD-INE261073330 ; DP - NSDL-IN-DP-NSDL-233-2003 ; CDSL-IN-DP-CDSL-271-2004 ; PMS-INP000000662 ; Mutual Fund-ARN 20669 ; Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080 ; (MCX/TCM/CORP/0425) ; NCDEX-00132 ; (NCDEX/TCM/CORP/0142) ; NCDEX SPOT-NCDEXSPOT/116/CO/11/20626 ; For any complaints email at igc@sharekhan.com ; Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Do's & Don'ts by MCX & NCDEX and the T & C on www.sharekhan.com before investing. | | | | "This document has been prepared by Sharekhan Ltd. (SHAREKHAN) and is intended for use only by the person or entity to which it is addressed to. This document may contain confidential and/or privileged material and is not for any type of circulation and any review, retransmission, or any other use is strictly prohibited. This document is subject to changes without prior notice. This document does not constitute an offer to sell or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Though disseminated to all customers who are due to receive the same, not all customers may receive this report at the same time. SHAREKHAN will not treat recipients as customers by virtue of their receiving this report.
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posted by Anonymous @ 8:41 AM  |
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