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Fortnightly Market View: Valuation Vs Macro
Bull market intact as long as the Nifty is above 8,300 in March
 
On 23rd January, the Nifty closed at 8,835. At the time of writing this piece, it is at 8,760. We are churning sideways for almost two months. In between, we have had a major event—the Union Budget. The Budget was almost universally hailed, even by independent thinkers. Some have described it has ‘visionary’ and the...
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Nifty, Sensex may remain weak, subject to rallies – Weekly closing report

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:
 
 

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Adlabs cuts IPO price, extends offer till 17th March

Due to lukewarm response to its Rs470-crore initial public offer (IPO), Adlabs Entertainment has revised the offer price downwards by Rs41 to Rs180-Rs215 and extended closure date by five days

 

Adlabs Entertainment has revised offer price for its initial public offering (IPO) to Rs180-Rs215 from Rs221 to Rs230 and also extended closure date till 17th March due to below expected response from investors.
 
According to reports, the issue was subscribed only 43% on the last day (12th March) though the retail portion was fully subscribed. The company had provided a discount of Rs12 a share to all eligible retail investors.
 
Adlabs Entertainment, owns and operates Imagica, a theme park located at Khapoli, between Mumbai and Pune. The company is raising about Rs470 crore funds to retire debt. The issue comprises a fresh issue of 1.83 crore shares and an offer for sale of 20 lakh shares by Thrill Park.
 

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