We had mentioned in last week’s closing report that Nifty, Sensex were still on an uptrend but risks were rising. The major indices of the Indian stock markets have been range-bound during the week’s trading and have been closing with small losses/ gains at the end of each day’s trading. Considering the week as a whole, there have been marginal losses over the previous week’s close.
The trends of the major indices in the course of the week’s trading are given in the table below:
Negative global cues depressed the Indian equity markets on Tuesday. Consequently, both the key equity indices closed in the red, as selling pressure was witnessed in IT (information technology) and automobile stocks. The BSE market breadth was tilted in favour of the bears -- with 1,634 declines and 1,095 advances. On the NSE, on Tuesday, there were 604 advances, 988 declines and 68 unchanged.
India's annual rate of inflation based on wholesale prices shot up to 3.55% for July from 1.62% in the previous month, due to an 11.82% jump in prices of food articles, official data showed on Tuesday. The prices of potatoes continued to pinch with an annual rise of 58.78%, pulses were dearer by 35.76%, while fruit were 17.30% costlier over the same month of the previous year, as per the Wholesale Price Index (WPI) data of the Commerce Ministry. Data released last week showed that the country's annual retail inflation shot up to a 23-month high of 6.07% for July and beyond the official tolerance level of 6%, again due to higher prices for food articles. The July WPI index at 3.55% marks a two-year high.
Negative global cues, along with profit booking, subdued the Indian equity markets during the mid-afternoon trade session on Wednesday. Heavy selling pressure was witnessed in information technology (IT) and technology, media and entertainment (TECK) stocks. Auto and aviation stocks showed some strength and traded with firm sentiments, pointed out market analysts. Sugar stocks traded down on the lack of buying interest.
Reliance Brands, a part of the Mukesh Ambani-led industrial group, has entered into a master franchise pact with the premium Dutch youth fashion company, Scotch and Soda, to set up its stores in all major Indian cities by next year. "Reliance will also grow the brand through other channels of sale in India, such as ecommerce, travel commerce, and leading multi-brand department stores," the company said, adding the range will cover menswear, womenswear and children’s wear categories through all channels of sale. Scotch and Soda has over 160 stores of their own globally, and can be found in over 8,000 other outlets, including the best global department stores, as also on their Web store. The merchandise is designed at their church-turned-studio in the heart of Amsterdam. Reliance Industries shares closed at Rs1,014.00, down 1% on the BSE on Wednesday.
Cable maker CMI Ltd. said on Tuesday its revenues in the quarter ended June grew 69.9% to Rs77.01 crore from Rs45.32 crore in the corresponding quarter of the previous year. Profit after tax was Rs5.50 crore in April-June 2016 against Rs2.83 crore in the first quarter in the last fiscal, a growth of 93.8%, said a statement issued by the BSE-listed CMI Ltd. The profit after tax grew 3.36% on a quarter-on-quarter basis over Rs5.32 crore recorded in the quarter ended March 2016. The earning per share was Rs3.86 in the quarter ended June, up from Rs2.44 in the first quarter of 2015-16. The company announced in April the start of production at its new facility in Baddi in Himachal Pradesh, which is part of the recently-acquired General Cable Energy Private Ltd from General Cable Corporation.
Indian equity markets were lifted by positive global cues and short covering during the mid-afternoon trade session on Thursday. Healthy buying was witnessed in banking, automobile and healthcare stocks. The BSE market breadth was skewed in favour of the bulls -- with 1,610 advances and 865 declines in the mid-afternoon session. On the NSE, on Thursday, there were 977 advances, 444 declines and 71 unchanged.
Initially on Thursday, both the key indices opened on a higher note prompted by positive cues from Asian and US markets. The investors' sentiments were also boosted by the decision of the US Federal Open Market Committee (FOMC) to maintain its key lending rates. In addition, short covering and value buying at lower levels aided the key indices to sustain the upward movement. Besides, foreign institutional investors have been continuously on the buying side for the last couple of days, which has extended the support to the Indian markets.
Tata Motors Ltd on Thursday delivered 241 buses to the Karnataka State Transport Corporation (KSRTC) under the Jawaharlal Nehru National Urban Renewal Mission. To be deployed on inter-state and intra-state services, the buses are equipped with new-generation Tata Cummins engines, air suspension and multiplex wiring, said a statement issued by Tata Motors. The company did not disclose the value of the deal. Karnataka Chief Minister Siddaramaiah took part in a ceremony representing "handing over" of the vehicles to KSRTC for deploying them on new and existing routes, replacing old buses that have run their course. KSRTC operates a whopping 13,000 Tata buses across the state.
On Friday, the major indices closed with minor losses over Thursday’s close. Selling pressure was witnessed in automobile and information technology (IT) stocks. In contrast, the BSE market breadth was tilted in favour of the bulls -- with 1,413 advances and 1,159 declines. On the NSE, on Friday, there were 899 advances, 701 declines and 260 unchanged. FMCG (fast moving consumer goods) stocks traded with sideways sentiments on lack of buying support. Sugar stocks traded firm on short covering and some lower level buying, according to market analysts. With the major indices on a flat-to-bearish trend in the Indian stock markets, we will have to wait for fresh macro-economic cues or global cues and liquidity to push the market higher.