Stocks
Nifty, Sensex in rally mode – Weekly closing report
Nifty will rise next week subject to dips
 
We had mentioned in last week’s closing report that Nifty, Sensex are deeply oversold and that Nifty has to close above 7,600 for a rally to materialise. The Indian stock markets have been volatile with no significant weekly progress. However, on Friday, the major indices advanced by around 2% and there were handsome gains for investors on a daily basis. The trends of the major indices over the week’s trading are given in the table below:
 
Falling exports, coupled with a slump in global crude oil prices, accelerated selling pressure in the Indian equity markets on Monday and led the benchmark indices to their lowest close in the last 20 months. The selling frenzy led both the bellwether indices of the Indian equity markets to end the day's trade at levels last seen during May 2014. They even touched their new 52-week low during the intra-day trade. Overall, the market breadth ended with extreme weakness -- as seven shares declined for every one share that advanced. The selling pressure was stoked by disappointing December exports' data, which touched a 13-month low, absence of fresh triggers and bearish global cues. Furthermore, investors were seen cautious regarding the upcoming global macro-economic data from China, the UK and the US.
 
On Tuesday, Indian markets, especially at open, got a breather after Chinese GDP numbers came in more or less as expected. Rise in oil prices also helped sentiments, which were further boosted by rise in European markets. Further, bounce-back in commodity prices, rally in global markets and cues thereof and decent corporate earnings of India Inc so far has uplifted the sentiment of the Street. In Tuesday's trade, good buying was observed in industrials, capital goods, telecom and banking sectors. Among the sector-specific indices, industrials index gained by 3.01%, capital goods index surged by 2.85%, telecom index moved up by 2.74% and bankex inched up by 1.68 points. The foreign institutional investors (FIIs) were net sellers in the equity markets on Tuesday. They divested Rs.857.70 crore.
 
On Wednesday, huge declines in Asian markets, coupled with a slump in global crude oil prices and a weak rupee depressed the Indian equity markets. The selling frenzy led both the bellwether indices of the Indian equity markets to trade at levels which were last seen during May-June 2014. The selling pressure was accelerated by absence of any fresh positive trigger and below expected third quarter (Q3) results.  Furthermore, investors were seen cautious regarding the sliding value of rupee which touched a low of 68.05 to a US dollar -- its weakest level since September 2013 during the intra-day trade. The rupee previously closed at 67.64-65 to a greenback.
 
The weakness in the rupee value indicates the massive foreign funds outflow from the Indian equity and debt markets. Besides, long-liquidation positions and disappointing macro-data points for December which eroded investors' hopes for an interest rate cut during the upcoming monetary policy review of the apex bank dented sentiments. The S&P BSE market breadth favoured the bears -- with 2,091 declines and only 384 advances on Wednesday. On Wednesday, the foreign institutional investors (FIIs) were net sellers again. According to data with stock exchanges, FIIs divested Rs1,324.69 crore on Wednesday.
 
Bearish global indices, coupled with a weak rupee and long-liquidation positions pushed down the Indian equity markets on Thursday. This led to major indices of the Indian equity markets to trading flat. The selling pressure led the bellwether indices to trade at levels which were last seen during May-June 2014. Initially, the bellwether indices opened on a positive note due to recovery in the US markets after a huge decline in the opening and also due to higher opening in Asian markets. The US futures were also quoting higher. However, the US futures soon ceded gains and went into negative which led to a sharp decline in all Asian markets including India.
 
The S&P BSE market breadth favoured the bulls -- with 1,344 advances and 1,188 declines, on Thursday. While valuations have turned attractive, FIIs continue to remain net sellers which would limit any gains in the market, observed market analysts. The major indices in the Indian stock markets ended flat on Thursday after huge volatility in the day’s trading.
 
On Friday, based on favourable cues from Chinese and Japanese stock markets and strong preopen futures of the US market, the Indian stock markets turned bullish. Gains were in the range of 2% over Thursday’s close. Good buying was observed in banking, auto, basic materials and utilities sectors on Friday. Friday’s gains are the first indication for market optimists that the short-term troubles may be near an end. Over the week, the major indices have ended flat with the exception of the Bank Nifty.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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COMMENTS

LALIT SHAH

1 year ago

For Bull's 26200/7990 to # and close over that lvl's
For Bear's 23000/7300 must break and close below that
PMO'S Popat Cage will change Soon India will get New FM SOON
PM WILL RESHUFFLE MINISTERS PORTFOLIO
19 MONTHS TOTAL FAILURE ON ECONOMIC FRONT
OIL IN international MARKET @ 20 years low though Indian public paying 62 per ltr.
Kiya yehi Achhe Din ke LIYE Modi ko chuna tha ?

Four held in Hyderabad for suspected IS links
Hyderabad : Four people suspected to have links with Islamic State have been arrested in Hyderabad as part of the nation-wide crackdown, police sources said.
 
The National Investigation Agency (NIA) with the help of local police picked up the youth from different places in the city since Thursday night.
 
The crackdown in various states comes in the wake of intelligence alerts about the possible terror attacks in the country ahead of the Republic Day.
 
The arrested youth were reported to be under surveillance by the security agencies for their alleged activities on the social media. According to sources, the NIA is on the lookout for five more suspects.
 
Hyderabad witnessed arrests of a few IS sympathisers and an alleged recruiting agent, a woman, last year. Three youths from the city were arrested at Nagpur airport last month when they were about to board a flight to Srinagar. Police said they were planning to go to Iraq and Syria via Pakistan and Afghanistan to join IS.
 
Last year, police also counselled more than a dozen youth along with their parents as they were found to be surfing IS material over the internet.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Alert issued after Pathankot taxi driver found dead
New Delhi : The Delhi Police on Friday issued an alert after a taxi driver alleged hijacked by three unidentified people from Pathankot in Punjab was found dead in Himachal Pradesh.
 
Through its official twitter handle, the Delhi Police released photographs of three suspects and the details of a Maruti Alto car, bearing registration number HP 01D2440, which was hired by them on January 20.
 
Taxi driver Vijay Kumar was later found dead at the Kalta bridge in Kangra district of Himachal Pradesh, a police officer said. Kumar was the resident of Gaggal in Kangra. 
 
Investigating agencies said that the vehicle, which was registered with any travel agency, is missing.
 
Security agencies relate the incident similar to the Pathankot Indian Air Force (IAF) base attack in which a taxi driver Ikagar Singh was hired and killed by Jaish-e-Mohammed terrorist hours before their terror strike.
 
"People should not panic as security agencies and Delhi Police are doing their best... The message is to just alert people. Citizens should inform the police control room if they observe any suspicious activity," Deputy Commissioner of Police Rajan Bhagat told IANS.
 
The Delhi Police issued the alert a week before French President Francois Hollande is set to arrive in India to be the chief guest at the Republic Day celebrations in the national capital.
 
The security agencies are into tizzy following the raids by the National Investigation Agency (NIA) across the nation in search of suspected IS terrorists.
 
The NIA in coordination with different state police teams have arrested twelve suspected terrorists from different places including Karnataka, Hyderabad and Mumbai, sources said.
 
The Delhi Police have already made India Gate and Rajpath out of bounds for vehicles and tourists. This year, police closed movement of vehicles on Rajpath early in the wake of numerous intelligence reports about possible terror attacks.
 
“The security has already been increased all across the capital. We do not want to leave any loophole. We are not allowing anyone to enter India Gate and park their cars near it. The tourists and Delhi residents are not being allowing to stand on the road near India Gate for long,” said a senior police officer.
 
The officer said that the crowded places, malls, railway stations and bus depots are kept under tight security cover.
 
"Extra paramilitary forces have already been deployed in the city with sniffer dogs and Delhi Police Quick Reaction Teams (QRTs) following the terror threat."
 
The Delhi Police on Tuesday arrested four suspected IS terrorist from Uttarakhand when they were planning to attack in Delhi, National Capital Region (NCR) and the ongoing Ardh Kumbh in Haridwar.
 
Central intelligence agencies said the four had been under surveillance for several months after their online activities drew suspicion, including contacts with people in territory in Iraq and Syria controlled by the IS group.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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