We had mentioned in last week’s closing report that Nifty, Sensex were looking weak. The major indices of the Indian stock exchanges made good gains over the week including hitting their new 52-week highs. The trends of the major indices in the course of the week’s trading are given in the table below:
Indian equity markets traded flat during the mid-afternoon session on Monday prompted by mixed global cues and lower crude oil prices. Selling pressure was witnessed in information technology (IT), healthcare and banking stocks. The BSE market breadth was tilted in favour of the bears -- with 1,465 declines and 1,216 advances. On the NSE, on Monday, there were 636 advances, 821 declines and 69 unchanged. State-run Rural Electrification Corporation (REC) on Sunday said it will seek the approval of its shareholders on September 21 for raising Rs50,000 crore through non-convertible debentures (NCDs). The company’s shares closed at Rs227.30, down 1.37% on the BSE, on Monday.
On Tuesday the markets were buoyed on strong buying support across sectors, coupled with positive global cues during the mid-afternoon session on Tuesday. In fact, almost the entire gain of the week came on Tuesday. Healthy buying was witnessed in automobile, banking and healthcare stocks. The BSE market breadth was skewed in favour of the bulls -- with 1,631 advances and 1,081 declines. On the NSE, on Tuesday, there were 891 advances, 491 declines and 81 unchanged. Pointing to solid growth in household spending and a strengthening job market, Yellen said the US economy is "now nearing" the Fed's statutory goals of maximum employment and price stability. Analysts said it's possible for the Fed to hike interest rates as soon as September.
The government in India on Tuesday announced to issue the fifth tranche of Sovereign Gold Bonds, the subscription of which will be open from September 1-9. The Bonds will be issued on September 23. The Sovereign Gold Bond, a financial asset, was launched by the government last year as an alternative to purchasing the metal gold. Accordingly, four tranches of issuances have been undertaken during 2015-16 and 2016-17 so far.
On Wednesday, Nifty and Sensex hit their new 52-week highs again. The benchmark indices initially opened on a flat-to-positive note on Wednesday prompted by mixed cues from Asian and European markets. Market awaited the announcement of the gross domestic product (GDP) data for the first quarter of 2016-17, among others. The indices marginally capped gains due to a sharp up-move in the dollar index and lower crude oil prices and pulled the markets back from their morning peak levels. However, gains in the rupee's value kept the market sentiment buoyed to close with appreciable gains.
Following the big ticket announcement by Reliance Industries on Jio commercial launch, key Indian stock market indices were trading flat on Thursday afternoon. Most telecom stocks were trading lower. Selling pressure was seen in telecom, technology, media and entertainment (TECK) and realty sectors, while good buying was observed in auto, metal and fast moving consumer goods (FMCG) sectors. On the NSE, on Thursday, there were 479 advances, 993 declines and 50 unchanged.
Taking the tariff war and competition in Indian telecom a new level, Reliance Industries Chairman Mukesh Ambani on Thursday said domestic voice calls on the Jio network will be free forever, and unveiled a four-month introductory offer of free voice and data services. "The era of paying for voice calls is ending," Ambani told the Annual General Meeting of Reliance Industries (RIL) in Mumbai. "No Jio customer will ever have to pay for voice calls again," he added. Bharti Airtel shares closed at Rs310.50, down 6.43% on the BSE. Reliance Industries shares closed at Rs1,029.15, down 2.73% on the BSE.
On Friday, the major indices of the Indian stock markets staged a minor rally to close with small gains of around 0.40% over Thursday’s close. With NSE trading volumes on the lower side on Friday, investors were clearly cautious before the week-end and market holiday on Monday. On Friday, there was also a general strike called by the Leftists all over India; but the response to the strike call was at a minimum in most parts of the country.