A close below 8,370 on Nifty may mean weakness
The Sensex closed the week that ended on 3rd July 2015 at 28,092.79 (up 1.01%) and the CNX Nifty closed at 8,484.90, up 1.24%. In the previous week, we had mentioned that Nifty will head lower only if it closes below 8,300. The 50-stock benchmark did not close below 8,300 and ended this week higher.
On Monday, in line with other Asian markets, Indian indices too opened deeply in the red, following a new crisis in Europe. Greece's European partners shut the door on extending a credit lifeline to Athens, leaving it facing a default, which could push it out of the euro. However, in the post-lunch session it showed a remarkable rally and recovered 60% of the day’s losses. Nifty crossed the crucial 8,300 level and managed to stay above that for the remaining session.
India and Thailand signed a number of important agreements, including the double taxation avoidance treaty, and exchanged instruments of ratification on the extradition treaty inked in 2013, which provides for the legal framework for seeking extradition of fugitive offenders.
The financial crisis in Greece may have an indirect impact on India as it affects the Euro, Finance Secretary Rajiv Mehrishi said on Monday. He also said that India is monitoring developments after the breakdown in talks between Greece and its creditors but does not have a firm plan in place to deal with any significant fallout.
On Tuesday, all the benchmark indices in India were sideways for most of the day until they spurted at the close. The Bombay High Court on Tuesday permitted Nestle India to export all nine variants of Maggi even as the ban on selling the two-minute noodles within the country will continue.
In a big day for initial public offers (IPOs), at least three companies -- low-cost carrier IndiGo, staffing firm Teamlease and e-retailer Infibeam -- have lined up public offers to raise an estimated over Rs3,000 crore from investors. Merchant banking sources said the draft papers for all three IPOs were being submitted to capital markets regulator SEBI. InterGlobe Enterprises, which runs the country's biggest airline by market share under the 'IndiGo' brand, is looking to raise Rs2,000-2,500 crore through the IPO, sources said, while Teamlease is looking to raise Rs450-500 crore and Infibeam about Rs400 crore.
The Indian markets put in a strong upmove Wednesday and went above previous week’s highs. Indian e-retailer Infibeam filed a draft prospectus for an initial public offerings (IPO) to raise Rs450 crore ($70.69 million), becoming the first of country's e-commerce companies to list its shares on the domestic market. Infibeam's IPO comes at a time of intense competition in India's e-commerce sector, with high cash burn rates at industry leaders Flipkart, Snapdeal and Amazon.com's India unit. Capital markets regulator SEBI last month relaxed its regulations for companies to list and raise funds through a dedicated platform on domestic stock exchanges rather than going overseas. E-commerce major Snapdeal said Sebi's move to relax regulations relating to listing on domestic stock exchanges will benefit "India-focused companies" like it in the long run.
An anticipated victory at the Supreme Court propelled the stock of Delhi-based city gas distributor Indraprastha Gas (IGL). It shot up more than 16% early in the day, and despite paring gains finished higher by about 9%. The Supreme Court dismissed a special leave petition filed by the downstream regulator Petroleum & Natural Gas Regulatory Board (PNGRB). The petition was against the Delhi High Court order of June 2012, which quashed the regulator’s directions to IGL to slash tariffs and charges. In April 2012, the PNGRB had issued a directive to IGL to slash network tariff and compression charge by about 60% — with retrospective effect from April 2008. The IGL stock had taken a hammering then falling more than 40% over two days.
Ratan Tata, Chairman Emeritus of Tata Sons has invested an undisclosed amount in his personal capacity in online taxi services company Ola, the Mumbai-based venture announced on Wednesday. The transaction is the latest in a series of investments made by 77-year-old Tata over the course of the last 12 months. He has also backed Snapdeal, India's largest online marketplace, mobile marketplace Paytm, auto portal CarDekho.com, and online furniture and lifestyle retailer Urban Ladder, among others.
On Thursday, Indian benchmarks moved sideways and closed marginally in the red waiting for positive cues from domestic and international sources.
Analysts said that while Greece uncertainty continued to brew, buyers in Indian markets were less eager to chase higher prices, after three days of relentless sharp rise. Analysts also pointed out that the crude oil’s sharp fall, following the US data showing higher inventory rise and better-than-expected performance of monsoon added some positive cues.
On Friday, the daily trading market position was as follows: S&P BSE Sensex closed at 28,092.79, up 0.53%, CNX Nifty closed at 8,484.90, up 0.47% and the Bank Nifty closed at 18,729.65, up 0.78%. The gains were an important indicator in the face of tough external climate and muted investments by FIIs.