The S&P BSE Sensex closed the week that ended on 9th January at 27,458 (down 430 points or 1.54%), while the CNX Nifty ended at 8,285 (down 111 points or 1.32%). In the previous week we had mentioned that Nifty may hit 8,500 over the coming week.
This week although trading on Nifty began on a negative note by the end of the week, on Thursday and Friday, the benchmark regained strength.
On Monday it began on a positive note but was pulled lower after hitting the day’s high bringing to a halt the six days of consecutive gains. Nifty closed at 8,378 (down 17 points or 0.20%). The pessimism of Asian counterparts and the Greek concerns played negatively on the market sentiments.
At the two day “Retreat for Banks and Financial Institutions” called “Gyan Sangam” held on 2 January 2015 and 3 January 2015, PSBs suggested that eventually the government should reduce its stake in PSBs to less than 51%. It also suggested that the government should transfer the government's stake in PSBs to a bank investment company.
As we anticipated on Monday Nifty was pulled lower on Tuesday. Nifty closed at 8,127 (down 251 points or 3.00%). The two days of loss wiped off all the gains made in the six days of rise ending 2 January 2015. The market moved lower as the oil prices sank to 5 and half year lows and worries over excess supply increased.
The seasonally adjusted HSBC India Services PMI Business Activity Index declined to 51.1 in December 2014, from 52.6 in November 2014.
On Wednesday the Nifty witnessed a highly volatile session and closed in the red again. Nifty closed at 8,102 (down 25 points or 0.31%).The Department of Financial Services, Ministry of Finance, issued a circular to the chief executive officers of all public sector banks, financial institutions and insurance companies assuring them of non-interference in matters of commercial decisions, transfers, and postings.
Nifty reacted in line to the positive performance of the Asian indices on Thursday. As we anticipated, the Nifty bounced back and closed at 8,235 (up 133 points or 1.64%).
The Indian economy is moving on the right track with efforts to fast track reforms, raising prospects of pickup in growth from 5.4% in FY15 to 7% by fiscal year 2017, says a Macquarie report.
On Friday the Nifty remained in the green for most of the session. The trend was weaker at the beginning of the session and gaining strength by the end of the session. Nifty closed at 8,285 (up 50 points or 0.61%). Infosys yesterday posted its December 2014 quarter result which was better than the estimates.
The government is likely to exempt state-run firms ONGC and Oil India from payment of fuel subsidy during the remainder of the FY2014-15 due to a steep decline in global oil rates to around US $50 per barrel.
Among the Nifty stocks, the top five stocks for the week were Hindustan Unilever (14%); Kotak Mahindra Bank (7%); BPCL (5%); Asian Paints (5%) and Maruti Suzuki (3%); while the top five losers were NMDC (-8%); BHEL (-7%); Sesa Sterlite (-7%); Punjab National Bank (-6%) and ICICI Bank (-6%).
Of the 1,492 companies on the NSE, 517 companies closed in the green, 949 companies closed in the red while 26 companies closed flat.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were: