We had mentioned in last week’s closing report that whether the bulls can take Nifty, Sensex higher is questionable. The major indices of the Indian stock markets gave no clear trend. While the bulls were trying to move the indices higher, there were market corrections too. The indices have ended flat. The trends of the major indices in the course of the week’s trading are given in the table below:
The benchmark indices opened higher on Monday following firm global markets and expectations of the Goods and Services Tax (GST) bill passing in the monsoon session of parliament and expectations of better quarterly results which are to be announced later during Monday. Selling pressure was witnessed in telecom, oil and gas and metal stocks. Some movement was noticed in the state-owned banks, especially State Bank of India's subsidiary banks. Expectations of the government's announcement of the next round of capital infusion in state-run banks, for which Rs25,000 crore has been earmarked for the current fiscal boosted investors' sentiments. On the NSE, there were 603 advances, 1007 declines and 55 unchanged.
Glenmark Pharmaceuticals Ltd is planning to raise $200 million by issuing USD denominated non-convertible unsecured bonds to repay existing debt, the company said on Monday. "..subsequent to the rating received by the leading credit agencies in the world that is Standard & Poor's and Fitch, the company has decided to tap into the international bond market and is planning to raise around $200 million by issuing USD denominated non-convertible unsecured bonds," the company said in a filing to Bombay Stock Exchange. "The net proceeds will be used for repaying the existing debt," it said. Glenmark shares closed at Rs833.80, down 2.12%, on the BSE.
Profit booking, coupled with disappointing quarterly results and negative global cues, depressed the Indian equity markets on Tuesday. Consequently, the key indices traded on a flat-to-negative note during the mid-afternoon session, as heavy selling pressure was witnessed in fast moving consumer goods (FMCG), banking and consumer durables stocks. On the NSE, there were 582 advances, 788 declines and 53 unchanged at the close of trading on Tuesday.
On Tuesday, the benchmark indices opened on a flat note, in sync with their Asian peers. The equity markets soon rose on the back of the government's decision to infuse capital into public sector banks. In a statement, the Ministry of Finance announced a capital infusion of Rs22,915 crore towards the recapitalisation of 13 public sector banks during 2016-17. However, the key indices ceded their gains, as profit booking, disappointing quarterly results and weak global crude oil prices hampered the upward trajectory. Besides, reduced chances of further monetary policy easing by the European Central Bank (ECB) in its upcoming monetary policy review dampened investors' sentiments. Nevertheless, value buying, healthy progress of monsoon season and expectations of GST (Goods and Services Tax) getting passed supported prices at the lower levels. Most of the banking and auto sector stocks faced resistance at higher levels due to profit booking, while IT sector stocks traded with mixed sentiments.
FMCG major Hindustan Unilever on Monday said its net profit rose 10% to Rs1,174 crore in the quarter ended June, as compared to Rs1,069 crore in the corresponding period last year. "Net profit at Rs1,174 crore, was up 10%, aided by a one-time write back of provision for pension benefits arising from plan amendments," the company said in a statement. The company has proposed to make an investment of about Rs1,000 crore towards the setting up of a new manufacturing unit in the vicinity of its existing factory premises at Doom Dooma in Assam, it said. Net sales from operations stood at Rs7,988 crore in the quarter under review as compared to Rs7,713 crore in the same quarter last year. The new unit is expected to be commissioned in early 2017 and will augment production capacity of personal care products. HUL shares closed at Rs894.00, down 2.87% on the BSE, on Tuesday.
Positive European indices and US premarket futures buoyed the Indian equity markets on Wednesday, as healthy buying was witnessed in healthcare, oil and gas, and capital goods stocks. On the NSE, there were 965 advances, 448 declines and 61 unchanged at the close of Wednesday’s trading.
The European Union (EU) downgraded its economic outlook for Britain and the rest of the bloc on Tuesday, saying the Brexit vote ushered in uncertainty and would weigh on growth. The gross domestic product (GDP) growth in the 19-country eurozone is expected to slow to between 1.3% and 1.5% in 2016 from the previously estimated 1.7% in May. The same growth figures are expected for next year. This implies a loss of GDP of 0.25% to 0.5% by 2017, which is less than in Britain (1.0% to 2.75%), said a report published by the European Commission, the bloc's executive arm. "The UK's 'leave' vote is expected to slow private consumption and investment and impact on foreign trade," it noted. The report warned that Britain's referendum had created an "extraordinarily uncertain situation," which is likely to prevail for some time, and would affect not only Britain but also the rest of the EU economy through several transmission channels, mainly uncertainty, investment, trade, and migration. These issues are likely to have a bearing on the investments by foreign institutional investors in emerging markets like India.
On Thursday, the benchmark indices opened on a positive note, in sync with their Asian peers, especially the Japanese markets. Besides, the equity markets were pushed up by higher global crude oil prices, firm rupee, healthy progress of monsoon season and recovery in the European indices. However, the equity markets soon ceded their gains on the back of sector-specific profit booking. In addition, reduced chances of further monetary policy easing by the European Central Bank (ECB) in its upcoming monetary policy review dampened investors' sentiments. Further, the ongoing logjam in parliament hampered the upward trajectory in the stock markets. Selling pressure was witnessed in banking, healthcare and capital goods stocks. On the NSE, at the close of trading, there were 489 advances, 936 declines and 49 unchanged. The BSE market breadth was also tilted in favour of the bears -- with 1,596 declines and 1,088 advances and 184 unchanged.
Positive domestic cues such as value buying, short covering and a firm rupee lifted the Indian equity markets on Friday. Consequently, the key indices traded in the green during the late-afternoon session, as healthy buying was witnessed in capital goods, metals and automobile stocks. Initially on Friday, the benchmark indices opened on a flat-to-negative note, in sync with their Asian peers, especially the Japanese markets. Besides, the equity markets were pulled down by lower global crude oil prices, a logjam in parliament and negative European indices. Furthermore, sector-specific profit booking on the back of quarterly results hampered the upward trajectory. In addition, the European Central Bank (ECB) decision to halt the easing of its monetary policy dampened investors' sentiments. Overall, on Friday, the major indices closed with gains of upto 0.37% over Thursday’s close.