Although the uptrend is still on, a close below the day’s low may pull down the Nifty further
The market closed mildly in the positive this week on cautiousness as both Houses of Parliament voted on allowing FDI (foreign direct investment) in retail. This makes it a third weekly close in the green. Key economic indicators like industrial output numbers and headline inflation, which would be released next week, would be keenly watched by investors.
The Sensex closed the week at 19,424, up 84 points (0.44%) and the Nifty gained 28 points (0.47%) to 5,907. While the uptrend is not broken, a close below the day’s low may pull down the Nifty further.
The market started the week on a subdued note as cautiousness prevailed ahead of the vote on FDI in Parliament. The market closed with minor gains on Tuesday even as the Lok Sabha began its debate on allowing FDI in retail in the country. Hopes of the government garnering the requisite number of votes in the Lok Sabha on the FDI issue led the benchmarks higher on Wednesday.
The market settled in the green on Thursday on late buying resulted as the Mayawati-led Bahujan Samaj Party asserted her willingness to vote in favour of FDI in retail in the Rajya Sabha. On Friday, the market pared all its gains in the second half of trade and settled lower even as the government won the vote in the Rajya Sabha on FDI in retail.
The top sectoral gainers were BSE Realty (up 5%) and BSE Oil & Gas (up 3%). On the other hand, BSE IT (down 4%) and BSE TECk (down 3%) were the main losers in the week.
State Bank of India, Hindalco Industries (up 6% each), Reliance Industries (up 5%); BHEL and Sterlite Industries (up 4% each) were the key gainers on the Sensex in the week. On the other hand, Infosys (down 5%), Bharti Airtel (down 4%), TCS, Wipro (down 3% each) and HDFC Bank (down 2%) settled at the bottom of the index.
The chief Nifty gainers were Jaiprakash Associates (up 9%); SBI (up 7%), Hindalco Ind (up 6%), RIL and DLF (up 5% each). The major losers were HCL Technologies (down 6%), Infosys (down 5%), Bharti Airtel, TCS (down 4% each) and Grasim Industries (down 3%).
The HSBC India Manufacturing Purchasing Managers’ Index (PMI)—a measure of factory production—stood at 53.7 in November, up from 52.9 in October, registering the fastest pace in five months.
On the other hand, the HSBC's Services PMI for November declined to 52.1 in November, down from 53.8 in the previous month, signalling the slowest rate of expansion in the current 13-month sequence. The index has witnessed significant decline in the last two months after registering the fastest pace of growth in seven months in September.
In international news, US policy makers are struggling to find ways to avoid the “fiscal cliff”, when tax increases and spending cuts come into effect in the New Year. This apart the Federal Open Market Committee’s (FOMC) two-day meeting next week is expected to maintain the easy monetary policy till the labour market sees an improvement.
Meanwhile, Bundesbank, the German central bank, cut its 2013 projection to 0.4% from the 1.6% predicted in June and said the economy will grow 0.7% this year, down from its previous forecast of 1%.
People with dubious political antecedents are seen jumping on to the AAP bandwagon. Unless Kejriwal and team find a way to deal with such situations, some of these unguided enthusiasts or maybe even deliberately planted infiltrators can do a lot of damage to the AAP
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