We had mentioned in last week’s closing report that Nifty, Sensex were showing no signs of tiring. The major indices of the Indian stock markets suffered a minor correction during the week and closed with small losses over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
Weak global cues and caution ahead of major domestic macro-data release pulled the Indian equity markets lower during the mid-afternoon trade session on Monday. According to market observers, investors were cautious ahead of the meeting between Finance Minister Arun Jaitley and top executives of public sector banks on the sector's non-performing assets (NPAs) issue, as well as the release of Index of Industrial Production (IIP) and Consumer Price Index (CPI) data later in the evening. On the NSE, there were 482 advances, 987 declines and 51 unchanged.
India's steel exports jumped by 69% in May to 0.641 million tonnes (mt) over the same month last year while imports were up by 2.4%, according to a Steel Ministry report. "Export of total finished steel was up by 102% in April-May 2017 to 1.387 mt over same period last year. Overall export in May at 0.641 mt was down by 14.1% over April 2017 but was up by 69% over May 2016," said the Joint Plant Committee report. India's consumption of total finished steel at 13.785 mt saw a growth of 4.2% in the first two months of the current fiscal over year-ago period, under the influence of rising production for sale. In the last month, overall consumption stood at 7.491 mt, up by 1% over corresponding month last year. In May, production for sale of total finished steel at 9.066 mt, registered a growth of 4.4% over the corresponding month last year. The production was, however, up by 7% over April 2017. Shares of Steel Authority closed at Rs57.20, down 0.61% on the BSE. Shares of Tata Steel closed at Rs507.35, up 0.21% on the BSE.
Shrugging off the previous day's losses, the Indian equity markets on Tuesday traded in the green on the back of firm global cues, broadly positive domestic macro-economic data and healthy buying in capital goods, banking and consumer durables stocks. According to the data released by the Central Statistics Office (CSO) after-market hours on Monday, India's annual retail inflation (Consumer Price Index) eased to a record low of 2.18% in May 2017, and the factory output growth (Index of Industrial Production) marginally slowed to 3.1% in April 2017. This, according to market analysts, provided a boost to the key equity indices. On the NSE, there were 698 advances, 700 declines and 47 unchanged.
Drug major Sun Pharmaceutical Industries on Tuesday announced that one of its wholly owned subsidiaries has received final approval from the US Food and Drug Administration (USFDA) for its generic version of ezetimibe tablets. According to Sun Pharma, the generic ezetimibe tablets -- used to reduce higher levels of cholesterol -- are therapeutic equivalents of Merck's Zetia tablets. "As per IMS, ezetimibe tablets had annual sales of approximately $2.7 billion in the US for the 12 months (which) ended April 2017," the drug major said in a regulatory filing to the BSE. The company’s shares closed at Rs536.45, up 0.62% on the BSE.
Lending major State Bank of India (SBI) said that its paid-up capital has increased to Rs863.20 crore after its recent share placement through QIP. "Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the bank increased from Rs810,98,57,182 to Rs863,20,50,393 comprising 863,20,50,363 equity shares of face value of Re1 each," the company informed the BSE in a regulatory filing. Last week, the lending major had allotted more than 52 crore shares of face value of Re1 each at a price of Rs287.25 per equity share aggregating to Rs14,999 crore to 61 "successful eligible investors". SBI shares closed at Rs283.80, down 0.44% on the BSE.
The Indian equity markets on Wednesday closed on a flat-to-positive note on the back of healthy wholesale price index (WPI) data and buying in capital goods, oil and gas as well as energy stocks. Official data released during market hours showed that India's annual rate of inflation based on wholesale prices decelerated in May to 2.17% from 3.85% in April as food prices eased. However, investors remained cautious ahead of the outcome of two-day US Federal Reserve's rate-setting meet later in the evening. On the NSE, there were 662 advances, 793 declines and 64 unchanged.
Telecom major Reliance Communications (RCom) Chairman Anil Ambani voluntarily decided to forego his salary and commission from the company during the current financial year as part of its "strategic transformation programme", RCom announced on Wednesday. Reliance Group Chairman Anil D. Ambani voluntarily decided to draw no salary or commission from RCom in the current financial year. The decision was part of the company promoters' commitment to the Strategic Transformation Program, the RCom release said. The company’s shares closed at Rs18.30, up 1.39% on the BSE.
Following their global peers, the Indian equity markets fell during the mid-afternoon session on Thursday, a day after the US Federal Reserve hiked its benchmark rates. The rate-hike assumes significance as it is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive. Consequent to the late-night US rate hike, the Asian markets traded broadly in the red and eroded Indian investors' confidence in the highly expensive conditions in the domestic stock markets. Selling pressure was witnessed in banking, oil and gas and capital goods stocks. On the NSE, there were 837 advances, 805 declines and 311 unchanged.
The US Federal Reserve raised its benchmark interest rates for the third time since December and unveiled plans to start trimming its balance sheet, even as news of the Fed's relatively hawkish stance provoked caution in early trading in the Indian equity markets, which were trading flat on Thursday morning. "In view of realised and expected labour market conditions and inflation, the FOMC (Federal Open Market Committee) decided to raise the target range for the federal funds rate to 1% to 1.25%," the American central bank said in a statement after concluding its two-day monetary policy meeting. This rate was a 25 basis points increase over the current one of 0.91%.
The Indian equity markets traded on a flat-to-positive note during the mid-afternoon session on Friday, with buying witnessed in consumer durables, FMCG (fast moving consumer goods) and banking stocks. According to market observers, weak global cues and selling in healthcare stocks eroded investors' risk-taking appetite. At the close of trading, the major indices ended flat over Thursday’s close. Bank Nifty closed with small gains over Thursday’s close.