We had mentioned in last week’s closing report that Nifty, Sensex lacked momentum. The major indices of the Indian stock markets were range-bound during the week and closed with small gains on Friday. The trends of the major indices in the course of the week’s trading are given in the table below:
Indian equity benchmarks closed flat with very little gains on Monday as the market waited for the January retail inflation data to be announced after-hours. Industrial production declined by 0.4% in December 2016, against the strong growth of 5.7% in November 2016. Bank of Baroda, one of the largest public lenders, fell more than 10% because the market was disappointed with the December quarter results. SBI also fell 1.76%, whereas most of the private bank stocks rose. Coal India fell 1.23% after consolidated net profit fell 20.25%, to Rs2,884.47 crore, on 2.88% rise in total income, to Rs21531.28 crore, for the December 2016 quarter, the results of which were announced on Saturday, 11 February 2017.
Infosys rose by 1.6% as co-founder NRM Murthy commented that Chairman R Seshasayee enjoys the “highest integrity” and called off his fight with the board, saying that the company will deal with the corporate governance issues. Piramal enterprises rose by 3.37% after reporting growth in total income of 31.11%, to Rs2,313.83 crore, and net profit growth of 31.66%, to Rs404.08 crore. Suzlon rose by 11% after the company reported growth in total income of 75.7%, to Rs3307.48 crore, and net profit of Rs274.34 crore for December 2016 quarter, as against net loss of Rs121.84 crore in December 2015 quarter. On Monday, the Central Statistics Office (CSO) reported that India's annual retail inflation eased to 3.17% in January, from 3.41% in December and 5.69% reported during the corresponding period last year. The increase in inflation could lead to a hardening of interest rates and hence a slowdown in the bullish approach in the stock markets.
Indian equities markets on Tuesday closed on a flat note as disappointing macro-economic data, coupled with broadly negative Asian indices and profit booking, subdued investors' sentiments. The BSE market breadth was tilted in favour of the bears -- with 1,790 declines and 1,039 advances. On the NSE, there were 479 advances, 991 declines and 61 unchanged. India's annual rate of inflation, based on wholesale prices, rose to 5.25% during last month, from 3.39% reported for December 2016, official data showed on Tuesday, mainly due to a rise in fuel costs. According to the Wholesale Price Index (WPI) data released by the Commerce and Industry Ministry, the annual inflation rate was (-)1.07% in January, 2016. The wholesale inflation for food articles declined by (-)0.56% during the month under review, from (-)0.70% in December and 6.46% recorded for January, 2016. However, expenses on primary articles, which constitute 20.12% of the WPI's total weight, rose by 1.27% during January.
The increased chances of an upcoming US rate hike, along with disappointing quarterly results, dragged the Indian equities markets lower on Wednesday. The key domestic indices closed more than half a per cent down, as selling pressure was witnessed in automobile, healthcare and consumer durables' stocks. The BSE market breadth was skewed in favour of the bears -- with 2,143 declines and 698 advances. On the NSE, there were 298 advances, 1,361 declines and 73 unchanged.
State-run Hindustan Aeronautics Ltd (HAL) is set to go public soon to sell 10% of equity shares of Rs10 face value, a top official said on Sunday. "We will soon make Initial Public Offering (IPO) to sell 36.1 million shares, which are equivalent to 10% of the holding by the government. The draft prospectus is ready for filing with the market regulator (Sebi) and have appointed the book-running lead managers," HAL Chairman T Suvarna Raju told reporters.
The government, which owns the defence behemoth, has diluted 25% (120.5 million shares) of its full holding through buy-back and collected Rs5,265 crore, including Rs981 as tax from the company, during the last fiscal (2015-16). Post-IPO, the government holding in the company will be 65%. "The valuation process is underway to fix the issue price for the IPO. We hope to do so by the end of this fiscal (2016-17) or during the ensuing fiscal (2017-18)," asserted Raju. The cash-rich firm paid Rs750 crore as dividend to the government for fiscal 2015-16. These shares are also likely to be attractive to foreign institutional investors post-listing on the stock exchanges.
Broadly, positive global indices and value-buying lifted the Indian equities markets on Thursday. The key domestic indices closed with gains of more than half a per cent each, as buying was witnessed in healthcare, automobile, and metal stocks. The BSE market breadth was in favour of the bulls -- with 1,807 advances and 992 declines. On the NSE, there were 1,154 advances, 480 declines and 86 unchanged.
On Friday, the major indices of the Indian stock markets were range-bound and closed with small gains of 0.50%-0.59%. However, some gains were capped on the back of negative global cues and profit booking. The BSE market breadth was marginally in favour of the bulls -- with 1,418 advances and 1,392 declines. On the NSE, on Friday, there were 866 advances, 760 declines and 83 unchanged.