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Weekly market: Markets this week: GST hopes lift sentiments; Nifty above 8600
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Saturday, July 30, 2016 |
| | | Market Commentary | | | Markets this week: GST hopes lift sentiments; Nifty above 8600 | | Indian shares surged for the week after the sentiments got boost from domestic and global cues. The Sensex and Nifty rose 0.89%-1.14% each for the week ended July 15, 2016. | |
 Major Headlines for the week:
Indian indices:
Welcome to the 'Weekly Market Wrap' for Friday, July 29, 2016 where the markets edged higher last week on hopes that the Goods & Services Tax (GST) bill inched closer to becoming a reality after media reports suggested that the Union Cabinet approved amendments to the constitutional amendment bill, incorporating suggestions by some of the states and opposition parties. Market sentiment was also boosted after the US Federal Reserve has opted to keep interest rates at ultra-low level after the conclusion of a two-day monetary policy meeting. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The barometer index, the S&P BSE Sensex, moved past the psychologically important 28,000 mark. The BSE Mid-Cap index gained 3.13%. The BSE Small-Cap index rose 1.67%. Both these indices outperformed the Sensex. The Sensex rose 248.62 points or 0.89% to settle at 28,051.86, in the week ended 29 July 2016. The Nifty 50 index gained 97.30 points or 1.14% to settle at 8,638.50.
Weekly market trend from July 25 - July 29, 2016:
July 25- Trading for the week started on a strong note. Banking sector stocks, shares of state-run oil companies and index heavyweight HDFC led the upmove on the domestic bourses on Monday, 25 July 2016, as investors awaited progress on the passage of the Goods and Services Tax (GST) constitutional amendment bill in parliament. The Sensex rose 292.10 points or 1.05% to settle at 28,095.34, its highest closing level since 10 August 2015.
July 26- Disappointing first quarter results from passenger car major Maruti Suzuki India (MSIL) and weak results from Dr Reddy's Laboratories (DRL) pulled the market lower towards the fag end of the trading session on Tuesday, 26 July 2016. The Sensex fell 118.82 points or 0.42% to settle at 27,976.52, its lowest closing level since 22 July 2016. July 27- Amid hopes for the passage of the GST constitution amendment bill during the ongoing monsoon session of parliament, the two benchmark indices eked out small gains on Wednesday, 27 July 2016. The Sensex rose 47.81 points or 0.17% to settle at 28,024.33, its highest closing level since 25 July 2016. July 28- Key benchmark indices registered decent gains on Thursday, 28 July 2016 amid hopes that the GST bill inched closer to becoming a reality after media reports suggested that the Union Cabinet approved amendments to the constitutional amendment bill, incorporating suggestions by some of the states and opposition parties. The Sensex rose 184.29 points or 0.66% to settle at 28,208.62, its highest closing level since 7 August 2015.  July 29- Losses in telecom stocks and index heavyweights HDFC and Reliance Industries led losses for key benchmark indices on the last trading session of the week on Friday, 29 July 2016. The barometer index, the S&P BSE Sensex lost 156.76 points or 0.56% to settle at 28,051.86. Weakness in Asian stocks weighed on sentiment on the domestic bourses.
Global indices:
Global indices ended on a mixed note this week. DAX100 rose 1.87%, Nasdaq rose 1.46% and CAC40 gained 1.34% while Shanghai Comp fell 1.10%, Nikkei fell 0.35% and Hang Seng fell 0.33%.  Sectoral and stock screening:
The 13 sectors ended mostly higher except S&P BSE CG which fell 0.46%, S&P BSE HC slipped 0.42% and S&P BSE Metal slipped 0.30%. Top gainers: S&P BSE CD up 2.52%, S&P BSE Auto rose 2.15% and S&P BSE Power gained 1.98%.
| | Looking at the 'A' group stocks, the top three gainers of the week were: Jindal Steel & Power up 20.66%, Muthoot Finance up 18.84% and Bajaj Finance up 17.12%.
Top three losers of the week were: Dr Reddys down 18.53%, Firstsource Solutions down 8.83% and Atul fell 8.02%. FII/MF activity:
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs1996.97 crore as on July 27, 2016 and the domestic investors sold Indian shares worth Rs201.70 crore as on July 26, 2016.
| | TOP MOVERS (GROUP A) |  | | | | | | | | Jindal Steel & Power | 83.5 | 20.66 | | | Muthoot Finance | 329.85 | 18.84 | | | Bajaj Finance | 10,357.25 | 17.12 | | | | | Dr Reddys | 2,937.25 | -18.53 | | | Firstsource Solutions | 46.45 | -8.83 | | | | | | | |
| FII/MF ACTIVITIES | | | | | | | Gross purchase | 15,440.89 | 2,276.60 | | | Gross sale | 13,443.92 | 2,478.30 | | | Net investment | 1,996.97 | -201.70 | | | | | | | | *Data as on July 27, 2016
**Data as on July 26, 2016 | | | | Market Outlook for the coming week!
In the coming Week, progress on GST bill, next batch of Q1 June 2016 corporate results, progress of monsoon rains, the outcome of the monthly surveys on India's manufacturing and services sectors, 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. Investors are eagerly waiting for the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the government on Friday, 29 July 2016, listed the much-awaited GST bill for consideration and passage in Rajya Sabha's agenda for the next week. The performance of the monsoon rains is being keenly watched. In its monsoon update issued on Thursday, 28 July 2016, the India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon as on 27 July 2016, was at 0% above the Long Period Average (LPA). Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for June 2016 from Monday, 1 August 2016. Stocks of public sector oil marketing companies (PSU OMCs) will be in focus as a fuel price review is due at the end of the month. PSU OMCs undertake fuel price review twice during the month based on the trend in international oil market. Among domestic macro economic data, Markit Economics will announce the India Manufacturing PMI for July 2016 on Monday, 1 August 2016. The Nikkei India Services PMI will be declared on Wednesday, 3 August 2016. On the global front, China will unveil Manufacturing Purchasing Managers Index (PMI) data and Caixin Manufacturing PMI data for July 2016 on Sunday, 31 July 2016. UK Services PMI data for July 2016 will be unveiled on Wednesday, 3 August 2016. US ADP Nonfarm Employment Change for July 2016 will be unveiled on Wednesday, 3 August 2016. US ISM Non-Manufacturing PMI report for July 2016 will be unveiled on Wednesday, 3 August 2016. Bank of England (BOE) monetary policy committee members vote on where to set the rate on Thursday, 4 August 2016. US Nonfarm Payrolls data for July 2016 will be unveiled on Friday, 5 August 2016. US Unemployment Rate data for July 2016 will be unveiled on Friday, 5 August 2016. | | | | To know more about our products and services, click here. |  | Registered Office: 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 Registration details: BSE - INB/INF/INE011073351; NSE - INB/INF/INE231073330; MSEI: INB/INF-261073333, 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. | | | | Disclaimer 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. Kindly note that this document is based on technical analysis by studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals.(Technical specific) 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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