We had mentioned in last week’s closing report that Sensex, Nifty were losing bullish momentum. The major indices of the Indian stock markets have suffered a sharp correction in the current week due to a greater expectancy of a hike in interest rates worldwide. On Friday, however, the major indices were range-bound and closed with minor gains over Thursday’s close. Tuesday and Wednesday were trading holidays. The trends of the major indices in the course of the week’s trading are given in the table below:
Reduced chances of a US rate hike, coupled with broadly positive Asian indices, lower crude oil prices and a strengthened rupee, buoyed the Indian equity markets during the late afternoon trade session on Monday. However, gains were capped by profit booking, negative European markets and caution ahead of key quarterly earnings' results. The BSE market breadth was tilted in favour of the bulls -- with 1,698 advances and 1,184 declines. On the NSE, there were 843 advances, 621 declines, 67 unchanged, on Monday
CNX Nifty traded firm on the back of bearish US dollar/ Indian rupee futures prices. Sector-wise, IT (information technology) stocks traded with sideways sentiments. Banking and pharma stocks faced profit booking at higher levels and traded with mixed sentiments. These were the observations of market analysts on Monday.
India's steel imports declined by 37.3% in the first six months of the current fiscal and exports rose by 35.6% in the same period, according to an official report. "Import of total finished steel at 3.594 million tonnes (mt) in April-September 2016-17 declined by 37.3% over same period of last year. Export of total finished steel was up by 35.6% in April-September 2016-17 (3.03 mt) over same period of last year," said the reports of the Steel Ministry's Joint Plant Committee. In September only, imports fell by 46% to 0.611 mt over the same month the last year and exports were at 0.655 mt, up by a staggering 111% over same month last year. Compared to August, steel exports were down 3.5% in the last month. The report said country's consumption of total finished steel saw a growth of 2.5% in first half of the current fiscal at 40.561 mt over same period of last year. Consumption in September only was 6.731 mt, up by 7.6% over the same month last year and declined by 7.7% over August 2016. "Production for sale of total finished steel at 48.846 mt, registered a growth of 9% during April-September 2016-17 over same period of last year," said the report. Overall finished steel production for sale in September was at 8.042 mt, up by 10.5% over corresponding month last year. September production declined by 8.4% as compared to domestic output in August. Tata Steel closed at Rs418.30, up 2.93% on the BSE, on Monday.
The Indian equity markets on Thursday plunged as investors were spooked ahead of the release of inflation macro-data and upcoming key quarterly results. Global cues such as increased chances of a US rate hike, disappointing China trade data and renewed fears of an early exit of Britain from the European Union (Brexit), too, dragged the key indices to end lower by more than 1.50% each. On the NSE, there were 349 advances, 1,290 declines and 57 unchanged. On the BSE there were 887 advances, 1,977 declines and 116 unchanged, on Thursday.
The benchmark indices opened on a negative note in sync with their Asian peers. The Asian, domestic and European markets plunged due to increased chances of US Federal Reserve (US Fed) going in for a rate hike in December. The September meeting minutes of the Federal Open Market Committee (FOMC) revealed that most members were in favour of a rate hike in the later part of the calendar year. A rate hike can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive. In addition, sentiments were dampened by disappointing factory output data released on Monday and anxiety over the upcoming release of key quarterly results. India's factory output remained subdued for the second consecutive month -- decelerating by (-)0.7% in August from a decline of (-)2.49% in July and a 6.3% rise in the corresponding month of last year.
Global software major Tata Consultancy Services (TCS) on Thursday reported Rs6,586 crore net profit for second quarter (July-September) of 2016-17 fiscal, registering just a 8.8% year-on-year (YoY) growth of Rs6,055 crore. In a regulatory filing to the stock exchanges, the Indian IT major said revenue for the quarter under review (Q2) increased to Rs29,284 crore from Rs27,166 crore in same period year ago, posting 7.8% YoY growth. In dollar terms, net income grew 6.3% YoY to $984 million in Q2 from $926 million, while gross income increased by 5.2% to $4.4 billion from $4.2 billion in the same period a year ago, under the International Financial Reporting Standard (IFRS). The operating profit for the quarter was Rs7,617 crore and operating margin 26%, added the filing. TCS shares closed at Rs2,328.50, down 2.17% on BSE, on Thursday.
India's annual retail inflation eased last month to 4.31% from 5.05% in August and 4.41% reported during the corresponding period of last year, official data showed on Thursday.
The Indian equity markets on Friday made gains during the late-afternoon trade session on the back of positive inflation macro-data points and value buying. However, gains were capped due to long-liquidation which was triggered by caution over the ongoing quarterly earnings season. The caution also led to lower trading volumes on the NSE. On the NSE, on Friday, there were 1,028 advances, 576 declines and 275 unchanged. Earlier in the day, major indices in the Asian markets had closed in the green.