We had mentioned in last week’s closing report that Nifty, Sensex were in a rally mode again. The major indices of the Indian stock markets were range-bound during the week and closed with small weekly gains 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:
On Monday, Indian equity markets traded on a flat-to-positive note during the mid-afternoon trade session on Monday as healthy buying was witnessed in consumer durables and FMCG (fast moving consumer goods) stocks. The key indices touched new intra-day highs, with the NSE Nifty scaling 9,637.75 points and the BSE Sensex 31,214.39 points. However, the indices receded from their highs as investors booked profits and healthcare, banking and IT (information technology) sectors continued to extend losses.
On Monday, Sun Pharmaceuticals Industries shares fell 10% after the company reported a 13.6% year-on-year drop in its consolidated net profit to Rs1,223.71 crore in the quarter ended March. Banking stocks currently pressurised the market sentiments, led by Bank of India, PNB (Punjab National Bank) and Federal bank with more than 2% intra-day downside.
On Tuesday, the Indian equity markets traded on a flat-to-positive note during the early morning trade session on Tuesday, as gains were capped by broadly negative Asian markets, along with a weak rupee. The key Indian equity indices closed at new highs on Tuesday aided by buying in healthcare, banking and automobile stocks. The 30-scrip Sensitive Index (Sensex) of the BSE closed at 31,159.40 points -- a new closing high -- up 50.12 points or 0.16%, after scaling a new intra-day high of 31,220.38 points. The wider 51-scrip NSE Nifty closed at a new high of 9,624.55 points -- up 19.65 points or 0.20%. On the NSE, there were 666 advances, 808 declines and 54 unchanged. The BSE market breadth, however, was bearish -- with 1,454 declines and 1,224 advances.
Around 8.50 lakh retail chemists, druggists and pharmacies on Tuesday went on a daylong strike all over India in support of their various demands, said All India Organisation of Chemists and Druggists (AIOCD) President Jagannath Shinde. A total 8.50 million employees are directly involved in the retail pharmacy business, he said adding that 72,000 of the striking retailers are from Maharashtra. The strike is in protest against the government's decision to make e-portal registration for chemists-druggists mandatory, including uploading all details of medicine sales, etc, and to press for long-pending demands of the industry, Shinde said. The S & P BSE Healthcare Index closed at 13,517.81, up 2.28% on the BSE.
After a negative start, the Indian equity markets on Wednesday traded at new highs during the mid-afternoon session with buying in automobile, consumer durables and capital goods stocks. Market observers opined that investors traded on a cautious note ahead of the release of India's quarterly estimates of GDP growth for the fourth quarter of 2016-17, and the index of eight core industries (ECI) figures for April 2017. On the NSE, there were 938 advances, 702 declines and 311 unchanged.
On Wednesday, the S & P BSE Sensex touched a new intra-day high of 31,233.68 points. The BSE market breadth was bullish -- with 1,384 advances and 1,119 declines.
On Wednesday, all the sectoral indices, led by realty, auto and consumer durables, traded in the positive zone with gains up to 1%. Sensex and Nifty both remained range-bound and market analysts do not expect any high volatility with consolidation on the menu for the market.
State-run steel manufacturer SAIL reported a net loss of Rs771.3 crore for the fourth quarter ended March, which was lower than the loss incurred in the same quarter of 2016, on the back of higher revenues during the last quarter. The company suffered a net loss of Rs1,184.64 crore in the corresponding quarter a year ago. For the entire fiscal 2016-17, SAIL has narrowed down its losses by 30% and recorded an overall improvement, including in production, sales and productivity, the company said in a stock exchange filing on Tuesday. During the quarter in consideration, the company's total income increased to Rs14,543.50 crore, as compared to Rs12,946.50 crore in the same period a year ago. "The unprecedented increase in coal prices during FY17 impacted the numbers and stunted the overall margins," SAIL said. Chairman PK Singh said in a statement that despite sharp hikes in imported and domestic coal prices, SAIL has "managed to compress the loss." "There is an improvement in the performance on all accounts," he pointed out. The company’s share price closed at Rs57.15, down 2.22% on the BSE on Wednesday.
The Indian equity markets closed on a flat-to-negative note on Thursday as disappointing macroeconomic data and a weak rupee eroded investors' risk-taking appetite. On the NSE, there were 849 advances, 664 declines and 80 unchanged.
India's manufacturing sector output slowed down last month due to a softer expansion in new orders and production, a key macro-economic data showed on Thursday. The Nikkei India Manufacturing Purchasing Managers' Index (PMI), which is a composite indicator of manufacturing performance stood at 51.6 from the index reading of 52.5 reported in April 2017. An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease. “The upturn in the Indian manufacturing sector took a step back in May, with softer demand causing lower expansions in output and the amount of new work received by firms. Moreover, there was a renewed decline in new export orders," said Pollyanna De Lima, economist at IHS Markit and the author of the report. The negative news from the macroeconomic front depressed investor sentiments further.
Commercial vehicles major Ashok Leyland Ltd on Thursday said its sales in May were down by 8%. In a statement here, Ashok Leyland said it sold 9,071 units last month, down from 9,875 units sold during May 2016. While the sales of medium and heavy commercial vehicles slid down 18 per cent, sales of light commercial vehicles went up by 22% in May as compared to sales numbers logged in May 2016, the company said. The company’s shares closed at Rs91.25, down 3.44% on the BSE.
The Indian equity markets, which closed the previous trade session on a subdued note, witnessed a gap-up opening during the early morning session to touch fresh highs following positive global cues. There was optimism about a normal monsoon, the Goods and Services Tax (GST) roll-out and buying in automobile, healthcare and consumer durables stocks. On the NSE, there were 940 advances, 707 declines and 304 unchanged. The Sensex touched a new high of 31,332.56 points intra-day. The major indices however, failed to consolidate on the intra-day highs and closed with small gains over Thursday’s close. Overall, for the week, the gains were lower than 1%.