Stocks
Nifty, Sensex continue to head higher – Weekly closing report

Nifty is putting in a pre-budget rally. Likely to target 8,950 next week

 
The S&P BSE Sensex closed the week that ended on 13th February at 29,095 (up 377 points or 1.31%), while the NSE’s CNX Nifty closed at 8,806 (up 145 points or 1.67%). In the previous week, we had mentioned that further move on the Nifty will be determined by the outcome of the Delhi assembly election on Tuesday.
 
Exit polls released by several media had showed that the Aam Aadmi Party (AAP) will get a majority and will be able to form the next government in Delhi. After a range bound session on Monday, the Nifty closed at 8,526 (down 135 points or 1.56%).
 
The Ministry of Finance, on last Saturday, said that the government has decided to infuse Rs6,990 crore in nine public sector banks during the current fiscal year based on efficiency parameters for individual banks.
 
On Tuesday, Nifty broke the trend of consecutive losses for seven days and closed at 8,566 (up 39 points or 0.46%), after a volatile session. Arvind Kejriwal-led AAP got a sweeping majority in the Delhi Assembly elections.
 
According to Indian government’s advance estimates for GDP based on the new calculation methodology, the economy is likely to grow at a faster pace of 7.4% in the current fiscal as against 6.9% in 2013-14.
 
As anticipated, on Wednesday, Nifty continued to book gains. Nifty closed at 8,627 (up 62 points or 0.72%). Rating agency Moody's Investors Service said the lower oil prices are expected to alleviate India's high inflation and spur economic growth.
 
On Thursday, Nifty closed at 8,712 (up 84 points or 0.98%). It closed near to the day’s high. After market hours, the Indian government announced CPI data for January 2015 and industrial production data for December 2014. Indian inflation rose marginally to 5.11% in January, according to the new base year for calculating prices. December inflation now stands revised to 4.28% as per the new series. Industrial output grew 1.7% in December, slower than November's 3.9%.
 
Further support of $2 million provided by World Bank after International Monetary Fund (IMG) agreed to bail Ukraine out of economic crisis, and Germany logging better-than-expected fourth-quarter growth, helped sentiments in Indian markets. State Bank of India (SBI), the country’s biggest lender, too posted improved December 2014 quarter result, which added momentum to the past three days of positive up move. On Friday, Nifty closed at 8,806 (up 94 points or 1.08%) in what looked like a strong pre-budget rally. The market mood was lifted by quarterly results of State Bank of India.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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SBI Q3 net profit jumps 30% to Rs2,910 crore on other income

During the December quarter SBI’s net profit jumped 30% mainly on increased non-interest income, while its gross NPAs declined by 83 basis points to 4.9%

 

State Bank of India (SBI), the country's largest lender, on Friday reported a 30% jump in its third quarter net profit mainly on 24% increase in its non-interest revenues.
 
For the quarter to end-December, the state-run lender, said its net profit rose to Rs2,910 crore from Rs2,234 crore, while its operating profit grew 22% to Rs9,294 crore from Rs7,618 crore, same period last year.
 
In a statement, SBI said, during the third quarter, its gross non-performing asset (GNPA) ratio declined by 83 basis points to 4.9% from 5.73%, a year ago.
 
During the December quarter, SBI's net interest and non-interest revenues increased 9.2% and 24.3% to Rs13,777 crore and Rs5,238 crore, respectively, compared with same quarter last year.
 
Deposits in the Bank recorded a growth of 11.9% to Rs15.1 lakh crore during the reporting quarter. At the same time, saving bank deposit increased by 9.3% to Rs5.1 lakh crore from Rs4.66 lakh crore last year.
 
At 2.57pm Friday, SBI was trading 7.5% higher at Rs305.6 on the BSE, while the 30-share Sensex was up 1% at 29,117.
 

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Nifty, Sensex headed higher – Thursday closing report

Nifty will try to target 8,800

 

We had mentioned in Wednesday’s closing report that NSE’s CNX Nifty may move up, subject to dips, as long as it keeps itself above 8,505. Thursday is the third consecutive session of the 50-share index to book rising gains. The NSE benchmark opened positive but drifted lower and was negative until around 2pm. Thereafter, the Nifty gained momentum and it started moving higher to a five-day high (including today) and closing near to it.
 
S&P BSE Sensex opened at 28,650 while Nifty opened at 8,677. Sensex hit a low at 28,406, while Nifty went down to the level of 8,599. However managing to rise sharply in the post-noon session, the benchmarks reached upto 28,839 and 8,733. Sensex closed at 28,805 (up 271 points or 0.95%), while Nifty closed at 8,712 (up 84 points or 0.98%). NSE recorded a volume of 101.71 crore shares. India VIX fell 1.68% to close at 20.1575.
 
After market hours, the government announced CPI data for January 2015 and industrial production data for December 2014. Retail inflation for January came in at 5.11% under a new series with revised base year of 2012. This is against consumer price index (CPI) based inflation of 4.16% in December last year. The government will unveil WPI data for January 2015 on Monday.
 
Steel and Mines Minister Narendra Singh Tomar has invited global companies to invest in the India's mining space, assuring all support in this regard.  Stating that India is rich in mineral resources and a large part remained unexplored, the Minister invited captains of mining industry to invest in exploration sector as well.
 
Industry body CEAMA has sought reduction in excise duty on consumer durables in the forthcoming Budget to help the sector combat demand slowdown. In June last year, the new government led by Prime Minister Narendra Modi had extended the excise duty concessions by six months to 31 December 2014.
 
Coming back to stock markets, India Cements (12.32%) was the top gainer in ‘A’ group on the BSE, in spite of posting weak December 2014 results. Its board of directors approved a proposal for reorganisation of Chennai Super Kings Cricket Limited, the company's wholly-owned subsidiary, under which the ownership of the franchise will be held by shareholders of The India Cements Limited.
 
Bank of India (5.77%) was the top loser in ‘A’ group on the BSE. Its weak bottom line in the December 2014 quarter result pulled the stock lower.
 
Dr Reddy’s Lab (5.49%) was the top gainer in the Sensex 30 pack, while Hindustan Unilever (1.53%) was the top loser. 
 
On Wednesday, the US indices closed flat.
 
Asian indices showed mixed performance. Nikkei 225 (1.85%) was the top gainer, while Straits Times (0.74%) was the top loser. European indices were trading in the green. US Futures too were trading higher on the news of truce in Ukraine.
 
Fears of a default in Greece and an escalating conflict in Ukraine weighed on investor sentiment. However, later, there was news that Russia had announced ceasefire with Ukraine.
 

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