The short-term support for Nifty is around 8,550
The S&P BSE Sensex closed the week that ended on 13th March at 28,503 (down 946 points or 3.21%), while the NSE’s CNX Nifty closed at 8,648 (down 290 points or 3.24%). In the previous week, we had mentioned that Nifty, Sensex, Bank Nifty may move sideways.
In US, employers added 295,000 workers in February. The jobless rate dropped to 5.5% from 5.7% in January. This evoked the fear that the Federal Reserve may raise interest rates by June 2015, which played adversely on market sentiments all throughout the globe. On Monday, Nifty closed at 8,757 (down 181 points or 2.03%), its highest loss since 6 January 2015.
The weakness on the indices continued on Tuesday as well. Nifty closed at 8,712 (down 45 points or 0.51%). Data released by the Society of Indian Automobile Manufacturers (SIAM) showed that total sales of vehicles across categories registered a growth of 0.15% to 15.26 lakh units in February 2015 as against 15.24 lakh units same month last year.
On Wednesday, Nifty closed in the red for the third consecutive session. Nifty closed at 8,700 (down 12 points or 0.14%). Preliminary data released by Reserve Bank of India (RBI) on the country’s balance of payments showed current account deficit (CAD) narrowed to $8.2 billion or 1.6% GDP in Q3 (December 2014) from $10.1 billion or 2% of GDP in September quarter. However, on a year-on-year basis, the CAD rose sharply from $4.2 billion or 0.9% of GDP in Q3 December 2013. Life Insurance Corporation (LIC) signed an MoU with the Railway Ministry to invest Rs1.5 lakh crore in infrastructure projects over the next five years.
On Thursday, the gap up opening was followed by a range bound session. Near the end of the trading session, Nifty hit its day’s high and closed near it. Nifty closed at 8,776 (up 76 points or 0.87%). The IIP for January was reported at 2.6% versus 1.7% in December. CPI inflation for the month of February rose to 5.37%.
RBI said banks may reverse the excess provision on non-performing assets (NPAs) sold prior to 26 February 2014 to securitisation or reconstruction company to their profit and loss account, provided the sale is for a value higher than the net book value. The Rajya Sabha passed the Insurance Laws (Amendment) Bill, 2015, paving the way for increase in the limit for foreign investment in the insurance sector to 49% from 26%. On Friday, the Nifty opened high on this news but selling started immediately. The indices gradually declined and hit its lowest since 12 February 2015. Nifty closed at 8,648 (down 129 points or 1.46%).
To make doing business easier, the Ministry of Commerce & Industry has reduced the mandatory documents required for import and export of goods to three documents each.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were: