Stocks
Nifty, Sensex may rally – Wednesday closing report
If Nifty stays above 7,100, it can head higher
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex were in no-man’s land and that Nifty has to go back above 7,100 for the rally to continue. Nifty inched up above 7,100 and there was a minor rally for the major indices of the Indian equity markets to gain around 0.8% over Tuesday’s close. The trends of the major indices of the Indian stock markets on Wednesday are given in the table below:
 
 
Positive European indices, steep rise in crude oil prices and value-buying buoyed the Indian equity markets on Wednesday. The late surge in the markets came after panic selling and the dwindling rupee value had depressed investor sentiments during most of the day's trade. Initially, both the indices of the Indian equity markets opened on a positive note, as a result of healthy gains made in the US markets on Tuesday. Notwithstanding the rise, caution selling and profit bookings on the back of rising non-performing assets (NPAs) levels of the banking sector dragged the markets lower. The BSE market breadth favoured the bears -- with 1,778 declines and only 612 advances.
 
Moreover, investors' confidence was eroded by the continuing conflict between the ruling NDA (National Democratic Alliance) and the opposition, which is seen as having a bearing on some key economic legislations that await parliamentary approval during the upcoming session. The central government is expected to push through major economic legislations like bankruptcy code and Goods and Services Tax (GST) Bill during the upcoming Budget session.
In addition, a weak rupee dented the equity markets. The Indian rupee opened on a weak note, down 14 paise to 68.52 against a US dollar from its previous close of 68.37-38 to a greenback. During the intra-day trade, the Indian rupee touched its lowest level since late August-early September 2013 at 68.67-level on spot.
 
Furthermore, the continued selling pressure from the foreign institutional investors (FIIs) dragged markets lower. The data with stock exchanges showed that FIIs divested Rs964.19 crore on Tuesday. Investors were also seen cautious ahead of Federal Reserve's January meeting minutes which are expected to be released later in the day and the upcoming macro-data on German consumer confidence. But, a positive opening to the European markets gave a boost to investors’ sentiments. Value buying was witnessed at the lower levels. 
 
China's stocks closed higher on Wednesday, with the benchmark Shanghai Composite Index up 1.08% -- to close at 2,867.34 points. Tokyo stocks ended lower on Wednesday as a stronger yen and falling oil prices dented investor-sentiment and saw early gains reversed. The 225-issue Nikkei Stock Average dropped 218.07 points, or 1.36%, from Tuesday to finish the day at 15,836.36. 
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Nifty, Sensex in no-man’s land – Tuesday closing report
Nifty has to go back above 7,100 for the rally to continue
 
We had mentioned in Monday’s closing report that Nifty, Sensex were to rally and that Nifty will have to stay above 7,050 for the rally to continue. The major indices of the Indian equity markets suffered a sharp correction in Tuesday’s trading to close more than 1.50% lower than Monday’s close. 
 
 
Profit-booking, coupled with doubts over the central government's ability to push through key economic legislations during the upcoming parliament session, dragged the Indian equity markets lower on Tuesday. The weak exports figures for January 2016 and the dwindling rupee value also subdued investors' sentiments. The BSE market breadth favoured the bears -- with 1,967 declines and only 569 advances. Initially, both the indices of the Indian equity markets opened on a positive note, in-sync with their Asian peers and Monday's sharp gains. However, profit booking on the back of gains made on last Friday and Monday dragged the markets lower. Moreover, investors' confidence was eroded due to continuing conflict between the ruling NDA (National Democratic Alliance) and the opposition, which is seen as having a bearing on some key economic legislations. The upcoming session of Parliament assumes significance as major economic legislations like bankruptcy code and Goods and Services Tax (GST) Bill will be taken up for approval by the Rajya Sabha. In addition, dwindling exports numbers and a weak rupee dented the equity markets. The Indian rupee opened on a weak note, down seven paise to 68.14 against a US dollar from its previous close of 68.06-07 to a greenback. On the exports front, Monday's late evening macro data release showed a slump of 13.6% in January in dollar terms over the same month a year ago. Chinese shares surged on Tuesday and regained the 2,800-point mark, joining a rebound across global capital markets. The benchmark Shanghai Composite Index gained 3.29% to close at 2,836.57 points while the smaller Shenzhen index surged 3.89% at 10,045.37 points, Xinhua reported. 
 
The Supreme court on Tuesday asked the Reserve Bank of India to furnish a list of the companies which are in default of loans by the banks and financial institutions in access of Rs500 crore or whose loans have been restructured under corporate debts restructuring scheme. While asking the RBI to file an affidavit, the apex court bench headed by Chief Justice G.S. Thakur directed that the list be furnished to it in a sealed cover. The court said this as one of the counsel told the court about commercial confidentiality of the companies. The court order came in the course of the hearing of a public interest litigation pointing to loans given by HUDCO in 2003 to some of the companies with questionable track records. The Bank Nifty closed at 14,166.45, down 1.93% on the NSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Nifty, Sensex to rally – Monday closing report
Nifty has to stay above 7,050 for the rally to continue
 
We had mentioned in Friday’s closing report that Nifty, Sensex would struggle and that the indices were showing no strength and would struggle to come out of the doldrums. The major indices of the Indian equity markets improved on encouragement from the government and favourable global cues. The trends in the major indices of the Indian stock markets during Monday’s trading are given in the table below:
 
 
Short-covering, coupled with value buying and positive global indices buoyed the Indian equity markets on Monday. The gains at the bellwether indices of the Indian equity markets came a week after, they had plunged by more than 6.50% each. The massive corrections made prices attractive and triggered value buying. Initially, both indices opened on a positive note, following a major rise in the Japanese Nikkei and healthy gains recorded at the US markets on last Friday. Besides, a rise in crude oil prices which climbed around the $30 a barrel mark (one barrel is equal to 159 litres) led investors to chase stock prices higher. In addition, a better-than-expected annual inflation rate and a stable rupee supported the equity markets rally. Moreover, investors' confidence was restored after Finance Minister Arun Jaitley made comments on the upcoming budgetary announcements and expected banking sector reforms. The BSE market breadth favoured the bulls -- with 1,985 advances and only 673 declines.
 
Meanwhile, data on the index of industrial production (IIP) last week showed India's factory output declined again in December by 1.3%. There was a growth of 3.6% in December 2014. Although the December output growth continued to be in the negative as compared to 3.6% growth in December 2014, it was somewhat better than the 3.42% decline registered in the month before. December IIP was dragged lower by a 2.4% drop in manufacturing activity. 
 
Also, official data on Monday showed that India's annual wholesale rate of inflation declined marginally to (-)0.90% for January from (-)0.73% for the month before. It was the 15th straight month since November 2014 that deflationary pressure persisted and wholesale inflation has remained in the negative zone.
The annual inflation, however, stood higher at (-)0.95% during January 2015. 
 
As per the wholesale price index numbers released by the Ministry of Commerce and Industry, though the annual food inflation declined, it was still high at 6.02%, against 8.17% in the month before, with pulses dearer by 44.91 and vegetables up 12.52%. Potato prices were down 17.08%.
The annual inflation rates of other major categories such as fuels and manufactured products remained in the negative -- at (-)9.21% and (-)1.17%, respectively.
 
The top gainers and top losers of the major Indian indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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