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Pidilite: Strong Going
Bharat Puri, with experience of over 30 years in FMCG/ paints sector, has joined Pidilite as managing director. He was a director of Pidilite in mid-2008. Edelweiss Securities met him and CFO, Pradeep Jain, recently for a discussion. These are a few takeaways from Edelweiss’ report which could be useful for those tracking the stock:
 
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Nifty, Sensex trendless – Weekly closing report
We had mentioned in last week’s closing report that Nifty Sensex might head higher. The major indices were marginally up during the week. Investors were on a wait-and-watch mode regarding the US Federal Reserve’s decision on the interest rates. Once the Fed decided to leave the interest rates unchanged, the major indices rallied on Thursday. The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
Positive global sentiments buoyed the Indian stock markets during the late-afternoon trade session on Monday. However, upcoming global events such as monetary policy announcements from major economies and profit booking at higher levels, capped gains. Buying was witnessed in metal, banking and IT stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,494 advances and 1,244 declines. On the NSE, there were 786 advances, 673 declines and 85 unchanged. Initially, the benchmark indices opened on a firm note in sync with their Asian peers. However, investors were seen cautious ahead of the US Fed's FOMC (Federal Open Market Committee) meeting, which was scheduled for September 20-21. Investors felt that a hike in US interest rates could potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. It was also expected to dent business margins as access to capital from the US would become expensive.
 
The benchmarks opened down, on Tuesday, following negative global cues and caution ahead of major global financial events. Selling pressure was witnessed in automobile, capital goods and banking stocks. The BSE market breadth was tilted in favour of the bears -- with 1,513 declines and 1,197 advances. On the NSE, on Tuesday, 548 advances, 922 declines and 85 unchanged. Besides, investors were cautious ahead of the US Fed's Federal Open Market Committee (FOMC) meet and the Bank of Japan (BoJ) monetary policy review announcements. Most IT stocks traded down. Banking stocks were traded with mixed sentiments, while auto stocks traded down.
 
Indian equity markets succumbed to profit booking to close the day's trade on a flat note on Wednesday. Selling pressure was witnessed in FMCG and banking stocks. The markets were largely positive as hopes of a rate-hike turned down in the US Fed meet enhanced the risk-taking appetite, according to market analysts. However, investors were not willing to push prices higher as caution still prevails ahead of the FOMC's final decision. The Bank of Japan (BoJ) decision (to keep its policy balance rates unchanged) did not have much impact on the domestic markets. Initially on Wednesday, the benchmark indices opened on a flat-to-positive note on the back of positive Asian markets. The CNX Nifty traded with firm sentiments on buying support from traders. Most IT stocks traded firm on recovery in USD/INR futures. Auto and oil-gas stocks also traded higher. On the NSE, there were 731 advances, 725 declines and 67 unchanged. The BSE market breadth was tilted in favour of the bulls -- with 1,413 advances and 1,314 declines.
 
The Bank of Japan (BOJ) unveiled its new policy framework on Wednesday, saying it will keep its negative policy rate at minus 0.1% while modifying the framework of its bond-buying programme to guide long-term rate at around 0%. The BOJ said it will continue to expand the monetary base until it achieves a 2% inflation goal.
 
Coal India Ltd (CIL), which produces 84% of country's coal output, "needs to step up to a double digit growth rate from that of around 9% achieved during 2015-16" to meet its production targets, company Chairman Sutirtha Bhattacharya said on Wednesday. "Coal India needs to step up to a double digit growth rate from that of around 9% achieved during FY 2016...during the first four months of FY 2017, Coal India's production growth was more than 6 million tonnes (mt) over the same period last year," he said while addressing shareholders at the company's 42nd Annual General Meeting. Coal India closed at Rs330.10, up 1.15% on the BSE over the week.
 
Indian equity markets soared on the back of positive global cues on Thursday. The key indices gained around a percentage each during the mid-afternoon trade session, as healthy buying was witnessed in stocks of banking, automobile, and capital goods. Besides, domestic cues such as the proposal to merge the general and railway budget, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets. The BSE market breadth was tilted in favour of the bulls -- with 1,695 advances and 1,044 declines. On the NSE, there were 993 advances, 471 declines and 74 unchanged.
 
On Friday, the major indices were range-bound and shed some of the gains of Thursday. Selling pressure was witnessed in banking and FMCG stocks. Axis Bank fell as much as 5.8%. The major indices closed on Friday with minor losses of 0.36%-0.40% over Thursday’s close. 

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Nifty, Sensex may rally a bit – Thursday closing report
We had mentioned in Wednesday’s closing report that Sensex, Nifty await Fed actions. The major indices of the Indian stock markets rallied strongly on Thursday, as the Federal Reserve maintained interest rates unchanged, to close around 1% higher than Wednesday’s close. The trends of the major indices in Thursday’s trading are given in the table below:
 
 
Indian equity markets soared on the back of positive global cues on Thursday. The key indices gained around a percentage each during the mid-afternoon trade session, as healthy buying was witnessed in stocks of banking, automobile, and capital goods. The BSE market breadth was tilted in favour of the bulls -- with 1,695 advances and 1,044 declines. On the NSE, there were 993 advances, 471 declines and 74 unchanged.
 
The Fed's decision to hold interest rates fuelled a rally in the equity markets globally leading to a sharp gap up move in our markets as well, according to market analysts. Initially on Thursday, the benchmark indices opened in the green following positive global cues. Investors' sentiments were buoyed on the US Federal Reserve's decision to keep its key interest rates unchanged for September. Besides, domestic cues such as the proposal to merge the general and railway budget, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets.
 
Union Finance Minister Arun Jaitley on Thursday said that infrastructure is the key to economic growth. Jaitley said this in his inaugural address at the BRICS (Brazil, Russia, India, China and South Africa) India 2016 seminar on "Best Practices in Public Private Partnerships (PPPs) and Long-term Infrastructure Financing".  The one day seminar was organised in the national capital by the Department of Economic Affairs, Ministry of Finance, with organisational support from the Confederation of Indian Industries (CII). Delegates from BRICS countries and senior officials of the Finance Ministry, along with senior executives of private sector companies participated in the seminar. It was organised in the run up to the BRICS Summit scheduled for October, 2016. India assumed the chairmanship of BRICS in 2016. According to Jaitley, an institutionalised forum amongst BRICS countries could serve as a regional knowledge hub with exchange of information facilitated through cloud sharing, and other electronic methods.  He pointed out that development projects in transportation sector like highways, ports and railways will be the area of mega economic activities as far as the infrastructure sector in India is concerned. The Finance Minister further said that investment from both the public and private sector will be required for financing projects in the areas of health, education, sanitation, renewable energy, highways, ports and railways among others. There is likely to be a good opportunity for investors in India in the infrastructure sector.
 
The US dollar decreased against other major currencies as investors were digesting the latest Federal Reserve statement. In the statement released on Wednesday after Fed's two-day policy meeting, the US central bank decided to keep its federal funds rate unchanged amid recent weak economic data and tepid inflation. "The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," said the statement.
 
As the global financial markets waited nervously, the US Federal Reserve kept its key interest rates unchanged -- a move that should bring some cheer when Indian markets open on Thursday. "The committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," said a statement by the Federal Open Market Committee after a much-watched, two-day meeting. The committee said even though unemployment rate is little changed in recent months, the job gains have been solid, even as household spending has been growing strongly. But business investment has remained soft, while inflation has continued to run below the 2 per cent long-term target. "Against this backdrop, the committee decided to maintain the target range for the federal funds rate at 0.25% to 0.50%."
 
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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