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Weekly_Report
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Saturday, May 7, 2016 |
| | | Market Commentary | | | Indian markets register second weekly loss on global worries | | Markets posted their second weekly fall as investors turned cautious ahead of a U.S. payrolls report for April that could influence bets on future U.S. rate hikes. The Sensex and Nifty fell 1.48% each for the week ended May 06, 2016. | |
 Major Headlines for the week:
Indian indices:
Welcome to the 'Weekly Market Wrap' for Friday, May 06, 2016 where the markets declined last week, extending last week's retreat, as a sell-off in global stocks sapped the demand for riskier assets. Data showing slowdown in growth in manufacturing sector in April 2016 also weighed on the domestic bourses.
Back home, in the week ended Friday, 6 May 2016, the 30-share S&P BSE Sensex fell 378.12 points or 1.48% to settle at 25,228.50. The Nifty 50 index fell 116.35 points or 1.48% to settle at 7,733.45.
The BSE Mid-Cap index fell 77.64 points or 0.70% to settle at 10,965.28. The BSE Small-Cap index fell 121.28 points or 1.10% to settle at 10,899.31. The decline in both these indices was lower than the Sensex's decline in percentage terms.
Weekly market trend from May 02 - May 06, 2016:
May 02- Trading for the week started on a weak note. Stocks of public sector banks and index heavyweights HDFC Bank, ITC and Infosys led losses for key benchmark indices on the first trading session of the week on Monday. The Sensex fell 169.65 points or 0.66% to settle at 25,436.97, its lowest closing level since 12 April 2016.
May 03- IT, banking sector stocks, shares of public sector companies and index heavyweights ITC and Reliance Industries led losses for key benchmark indices on Tuesday, triggered by weakness in global stocks. The Sensex fell 207.27 points or 0.81% to settle at 25,229.70, its lowest closing level since 12 April 2016.
May 04- Data showing slowdown in growth in the India's services sector and weakness in global stocks triggered modest losses for Indian stocks on Wednesday. The Sensex fell 127.97 points or 0.51% to settle at 25,101.73, its lowest closing level since 11 April 2016.
May 05- Capital goods stocks and index heavyweights HDFC and ITC led gains for key benchmark indices on Thursday. The Sensex rose 160.48 points or 0.64% to settle at 25,262.21, its highest closing level since 2 May 2016.
May 06- Amid a divergent trend for various index constituents, the Nifty 50 index ended near the flat line on Friday. The barometer index, the S&P BSE Sensex, registered small losses. The Sensex
 lost 33.71 points or 0.13% to settle at 25,228.50, its lowest closing level since 4 May 2016. The Nifty fell 2.05 points or 0.03% to settle at 7,733.45, its lowest closing level since 4 May 2016. Global indices:
All the global indices ended in this week were negative. Top losers were Hang Seng down 4.54%, Nikkei down 3.36%, CAC 40 down 2.88%, FTSE100 down 1.86% and DAX100 down 1.68%. Japanese stocks edged lower as the yen surged to 1-1/2-year high against the dollar. The stronger yen makes Japanese exports less competitive and cuts into the value of repatriated earnings. Yen firmed up after the Bank of Japan's (BOJ) decision to keep its policies unchanged. Speculation was rife that the Japanese central bank would announce a further easing of the monetary policy to stimulate Japan's economy.
Chinese stocks witnessed selling pressure after the latest data showed deceleration in China's manufacturing activity in April 2016. The Chinese economy is the world's second biggest economy after the United States. Meanwhile, Chinese leaders have called for strengthening the supervision of stock market and protecting investor interests, according to reports.
US stocks witnessed selling after weak consumer spending data for March 2016 and after the monthly Chicago Business Barometer index for April showed slowdown in the manufacturing sector. Further, the ADP employment data showed that private payrolls across the US rose by 156,000 last month. The increase is the smallest since April 2013. The report is seen as a precursor to the top-tier nonfarm-payrolls data due on Friday, 6 May 2016. 
Sectoral and stock screening:
All the 13 sectors ended in the zone red, top losers were: S&P BSE Metal down 3.60%, S&P BSE Bankex down 3.01%, S&P BSE IT down 2.54%, S&P BSE PSU down 2.49% and S&P BSE TECk down 2.49%
| | Looking at the 'A' group stocks, the top three gainers of the week were: Indiabulls Real Estate
up 13.10%, Cholamandalam Investment & Finance Company up 12.22% and Shriram Transport Finance Company up 11.42%.
Top three losers of the week were: Adani Ports & Special Economic Zone down 18.17%, Amtek Auto down 18.02% and Adani Enterprises down 11.47%.
FII/MF activity:
The foreign institutional investors (FIIs) have been the net sellers of the Indian stocks to the tune of Rs757.74 crore as on May 05, 2016 and the domestic investors Indian shares worth a net buyers of Rs241.00 crore as on May 04, 2016. | | TOP MOVERS (GROUP A) |  | | | | | | | | Indiabulls Real Estate | 76.40 | 13.10 | | | Cholamandalam Investment & Finance Company | 893.10 | 12.22 | | | Shriram Transport Finance Company | 1,051.35 | 11.42 | | | | | Adani Ports & Special Economic Zone | 194.95 | 18.17 | | | | | Adani Enterprises | 76.80 | 11.47 | | | | | | | FII/MF ACTIVITIES | | | | | | | Gross purchase | 14,018.07 | 2,597.50 | | | Gross sale | 14,775.81 | 2,356.50 | | | Net investment | -757.74 | 241.00 | | | | | | | | *As on May 05, 2016
**As on May 04, 2016 | | | | Market Outlook for the coming week!
Macroeconomic data, next batch of Q4 results of India Inc., trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.
Select stocks may see action as Morgan Stanley Capital International (MSCI) will announce changes in its global indices as part of its semi-annual index review on Thursday, 12 May 2016.
Among key macroeconomic announcements, the government is scheduled to unveil industrial production data for March 2016 at 17:30 IST on Thursday, 12 May 2016. India's industrial production (IIP) rebounded 2% in February 2016 over February 2015, while snapping consistent decline for last three straight months.
The government is scheduled to unveil the consumer price index (CPI) data (rural, urban and combined) for the month of April 2016 at 17:30 IST on Thursday, 12 April 2016. The all-India general CPI inflation dipped to six months low of 4.83% in March 2016 (new base 2012=100), while recording decline for second straight month.
On the global front, Asian markets will on Monday, 9 May 2016, react to the influential monthly US nonfarm payroll data for April 2016 to be released on Friday, 6 May 2016. The monthly job data would influence US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. | | | | 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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