Nifty is likely to meet selling on rallies
Negative global cues, as well as, Indian macroeconomic cues have caused domestic stock indices to drift downwards to a 2.49% fall over the week. This is the third consecutive week of decline with the slump in global commodity prices impacting several Indian corporate majors, as did high inflation and poor industrial production numbers.
We had mentioned in previous week’s closing report that Nifty, Sensex may rally a bit and that NSE benchmark may rise up to 8,100 subject to dips. The weekly trends in the major indices are given in the table below:
Investor sentiments were subdued on Monday, a day after the BJP-led coalition suffered a rout in the Bihar assembly polls. Notwithstanding the slide, both the bellwether indices recovered their lost ground on the back of recent reform measures announced for the power and banking sectors. Bargain hunting too brought back investors.
Reliance Power on Monday declared its maiden interim dividend of 10 percent, amounting to a total outgo of Rs.281 crore. The company said that its board in a meeting held on Monday declared the maiden dividend which comes to about Re.1 per equity share of Rs10 each. The interim dividend was announced after the company reported a 36.57% jump in its net profit to Rs345.63 crore for the quarter ended on September 30, on higher electricity generation. The total income of the company increased by 51.58% to Rs.2,856.01 crore in the second quarter of current fiscal as against Rs1,884.18 crore in the same quarter last year.
Airline major Jet Airways on Monday confirmed its largest-ever fleet order for 75 Boeing 737 'Max' aircraft. The order, which includes options and purchase rights for an additional 50 aircraft, was signed at the Dubai Airshow. The company said that the transaction will be completely financed and managed through a sale and lease back arrangement, which will be signed, when Jet Airways takes delivery of the aircraft from 2018.
Nestle India on Monday said it has begun the roll-out of Maggi noodles in 100 cities, terming the five-month ban as "one of the biggest crises" it has faced in the 32-year history of the brand in the country. It also announced a pact with Snapdeal for online sales. "The return of Maggi Noodles on the auspicious eve of Deepawali and on the day of Dhanteras is a moment of celebration for all of us," Nestle India chairman and managing director Suresh Nayaranan said, announcing the re-launch, after it was taken off the shelves on June 5.
Both the bellwether indices opened Tuesday in the negative territory on the back of bearish sentiments following the BJP's rout in the Bihar election, heightened chances of a US rate hike and disappointing quarterly results.
In the automobile sector, low interest and fuel costs supported by a pent up demand and new launches during the festive season gave a boost to the domestic passenger car sales last month. The domestic passenger car sales grew by 21.80%, industry data showed on Tuesday. According to data furnished by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales during October stood at 194,158 units against 159,408 units in the like month of the previous year. The data revealed that the total passenger vehicle sales, which include cars, utility vehicles and vans, went up by 21.46% to 268,629 units from 221,163 units sold in October 2014. Furthermore, sales of utility vehicles rose by 20.82% to 58,120 units. The off-take of vans increased by 19.79% to 16,351 units. The industry data for last month showed a 12.73% growth in the overall commercial vehicles segment sales, which is a key indicator of economic activity. The commercial vehicles segment off-take for October stood at 58,596 units from 51,978 units sold during the corresponding month of 2014. Overall exports across categories for the month under review was lower by 5.56% at 289,309 units sold abroad from 306,357 units shipped out during October, 2014. The S & P BSE Auto index rose by 0.1% in Tuesday’s trading.
The double whammy of a fall in the industrial output growth and rising retail inflation dragged key Indian stock market indices on Friday to their lowest level in six weeks. The mood was also affected by weak global cues. Official data showed on Thursday that India's factory output growth decelerated to 3.6% in September from 6.4% in the month before, even as the annual retail inflation for October moved up significantly to 5% from 4.41% in the month before. The short trading week ended on a negative note as the acceleration of Consumer price Index inflation in October and a fall in industrial production data for September added to the weak sentiments. Disappointing domestic macroeconomic numbers released on Friday -- Industrial production and CPI numbers -- dampened the sentiment for investors.
State miner Coal India Ltd (CIL) on Friday reported a 16% rise in consolidated net profit at Rs2,543.80 crore for the second quarter ended September, compared to Rs2,192.38 crore in the same quarter of the previous fiscal, on the back of higher sales. "The profit after tax (PAT) for the second quarter ended September 30, 2015 stood at Rs.2,543.80 crore as against Rs.2,192.38 crore for the same period last year registering a growth of around 16% (YoY basis)," CIL said in a stock exchange filing. Consolidated net sales were at Rs16,957.59 crore during the quarter, which was an increase of 8 percent over the Rs15,677.98 crore sales in the corresponding quarter of the last fiscal. "The increase in earnings is largely due to the higher production and offtake during the current period compared to the corresponding period in the previous year," Coal India said. Coal production during the second quarter of the current fiscal was 108.20 million tonnes (MT) as against 102.42 MT for the second quarter of the previous year.
Maharashtra is planning to move the Supreme Court to challenge lifting of the ban on Nestle India's Maggi noodles, Food and Civil Supplies Minister Girish Bapat said on Friday. "Our legal department is examining all aspects, the pros and cons and depending on their (legal) opinion, we plan to challenge the issue in the Supreme Court," Bapat told IANS. Justifying the move, Bapat said that certain batches have been tested and there is a possibility that other batches could cause health issues among the consumers.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were: