Stocks
Nifty, Sensex upmove may slow down - Weekly closing report

Nifty sharp up move may slow down and the index may turn volatile around 8,800

 

The S&P BSE Sensex closed the week that ended on 23rd January at 29,279 (up 1157 points or 4.11%), while the NSE’s CNX Nifty ended at 8,836 (up 322 points or 3.78%). From here Nifty sharp up move may slow down and the index may turn volatile around 8,800. Last week we mentioned that Nifty will remain bullish as long as it does not end the coming week below 8,200.
 
On Monday, the gap up opening was followed by a volatile session and ended with the Nifty closing near the day’s high. Nifty closed at 8,551 (up 37 points or 0.43%). The highlight of the day was the loss recorded on Shanghai Composite after China's securities regulator last week banned three brokers from opening new retail accounts for three months, after they failed to correct practices. Back home the Union Finance Minister Arun Jaitley assured that the government has no intention to privatise either railways or Coal India.
 
The rally was further extended with the Nifty closing in the positive again on Tuesday which was also its new life time high. Nifty closed at 8,695 (up 145 points or 1.7%). Ratings agency Fitch said the recent interest rate cut by the Reserve Bank of India will have minimal impact.
 
On Wednesday Nifty made a fifth day of positive closing. Nifty closed at 8,730 (up 34 points or 0.39%). SEBI chairman UK Sinha has said the regulator has written to the government asking for access to recovery mechanisms to other investors beyond banks and financial institutions.
 
On Thursday Nifty hit an all-time new high for the third consecutive session and closed in the positive again in spite of giving up all the intra-day gain mid-way. Nifty closed at 8,761 (up 32 points or 0.37%). In the government's Housing for All Mission which proposes to build 2 crore houses across the nation by 2022, prime minister Narendra Modi has directed all concerned departments to immediately finalise the programme and the financing models for alternate sets of housing requirements. Chief Economic Advisor Arvind Subramanian has said the real investment flows should begin picking up from next fiscal.
 
European Central Bank (ECB) unveiled its bond-buying stimulus programme to boost sluggish Eurozone economy. ECB left interest rates unchanged and announced larger-than-expected measures. It plans to buy 60 billion euros worth of assets per month. This move further boosted market sentiments as there is anticipation that inflows from foreign funds into India will rise. Nifty closed at it new life time high at 8,836 (up 74 points or 0.85%).
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 
 

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Nifty, Sensex may move sideways– Thursday closing report

Nifty has rallied for six days in a row. It is time for a small dip

 

Gains on the indices continued today for the sixth consecutive session. Today for the first time ever has Sensex crossed the level of 29,000 and managed trading above this level for a substantial time. Though mid-way through the session, it lost some strength but it subsequently recovered and closed with good gains.
 
S&P BSE Sensex opened at 28,958 and moved down to 28,892 after reaching upto 29,060, while CNX Nifty opened at 8,746 and moved from a high of 8,774 to 8,727. Recovering from the low, the Sensex closed at 29,006 (up 117 points or 0.41%) while Nifty closed at 8,761 (up 32 points or 0.37%). NSE recorded a volume of 100.99 crore shares. India VIX rose 4.81% to close at 18.5650.
 
In the government's Housing for All Mission, the Prime Minister Narendra Modi has directed all concerned departments to immediately finalise the programme and the financing models for alternate sets of housing requirements. The programme proposes to build 2 crore houses across the nation by 2022.
 
In his foreword to the fourth edition of the annual Status Paper on Government Debt which gives detailed analysis of the government's debt position released yesterday, the Finance Minister Arun Jaitely has said that the overall liabilities of the Central Government are on a medium-term declining trajectory with low roll-over risk, notwithstanding the slight increase in a couple of years in recent past due to stimulus spending in the wake of the global financial crisis.
 
On the sidelines of the World Economic Forum meeting yesterday Minister for Power and Coal Piyush Goyal reportedly said that the country's power sector is set for $250 billion investment across different segments. He also said investments are expected across diverse areas of the energy sector including in renewables as well as transmission and distribution segments.
 
The government wants to reduce the subsidy bill, estimated at near 2% of its gross domestic product, to cut down state expenditure and transfer funds to other sectors, the finance minister said.
 
Media reported that the Union Minister of Heavy Industries and Public Enterprises Anant Geete on Thursday made a strong case to extend the excise duty relief to auto makers and increase in import duty on electrical equipment to help local industries. However, he did not divulge details with regard to his ministry's proposals made in this regard to finance minister.
 
Chief Economic Advisor Arvind Subramanian has said the real investment flows should begin picking up from next fiscal, but it will be a gradual process. Sun Pharma Advanced (17.04%) was top gainer in ‘A’ group on the BSE. The stock hit its all-time high today.
 
Suzlon Energy (7.45%) was the top loser in ‘A’ group on the BSE. Suzlon Group today signed a binding agreement with Centerbridge Partners LP, USA to sell 100% stake in Senvion SE, a wholly owned subsidiary of the Suzlon Group.
 
Sun Pharma (3.65%) was the top gainer in Sensex 30 pack while NTPC (2.44%) was the top loser. On Wednesday US indices closed in the green. Canada's central bank, the Bank of Canada, delivered a shock interest-rate cut after a monetary policy review yesterday. Except for NZSE 50 (0.45%) and Seoul Composite (0.02%) all the other Asian indices were trading in the green. SET Composite index of Thailand (1.49%) was the top gainer. China's central bank injected 50 billion yuan ($8 billion) of liquidity into the financial system. The move to keep the banks flush with cash comes ahead of the Lunar New Year holiday next month when demand for funds normally increases substantially as people spend on gifts and dining.
 
European indices were showing mixed performance while US Futures were trading higher. European Central Bank may unveil a bond-buying stimulus programme later in the day in an attempt to revive the flagging euro zone economy.
 

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Kalpataru Power Transmission: Boost to Domestic Business
A pick up in domestic T&D market can boost KPTL’s domestic business
 
Kalpataru Power Transmission Ltd (KPTL) is part of the Kalpataru group and is a leading turnkey player in power, infrastructure and asset creation (transmission systems / roads / logistics & warehouse). It exports to 38 countries. It has 67.2% stake in JMC Projects (JMC) which is in the business of civil...
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