Sensex, Nifty headed lower: Weekly closing report

Nifty may try to rally but selling pressure seems very strong

The BSE 30-share Sensex closed at 20758.49 (down 93 points, 0.45%) while the NSE Nifty closed at 6171.45 (down 40 points, 0.64%).


We anticipated that the downward pressure on Nifty would be strong, however, the index closed marginally down on Monday, making it the fourth consecutive trading session when the index closed in the negative. The HSBC/Markit Purchasing Managers (PMI) Index for the services industry fell to 46.7 in December from 47.2 in November, registering the sixth consecutive monthly drop in output levels, the longest period of continuous reduction since the 2008/2009 global financial crisis. The HSBC India Composite Output Index, which maps both services and manufacturing, stood at 48.1, below the crucial 50 mark, for the sixth consecutive month. The index dropped from November's 48.5, indicating a slightly faster rate of contraction.


Tuesday was the fifth day when the market closed lower. The market hardly managed to sustain itself in the positive for little time after which it made a quick slide into the negative. Markit Economics said that the HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, signaled overall growth of output across global emerging markets in December 2013. Manufacturing output continued to rise at a faster pace than services activity. The service sector output rose at the slowest rate in three months. The HSBC Emerging Markets Future Output Index fell to a six-month low in December. But, the index's average in Q4 was higher than those in the previous two quarters.


Wednesday was the first day of 2014 when the indices closed in the positive, however, we did not foresee much of strength in the benchmark to continue the trend. Prime Minister Dr Manmohan Singh said India's economic growth in the current fiscal year will likely remain flat at 5%. A number of international as well as domestic factors have contributed to the slowdown in India's economic growth in the recent past, Dr Singh said.


Weakness on the bourses again set in on Thursday. The news from US that the minutes of the last Federal Open Market Committee meeting showed that a majority of officials judged the effects of the monthly asset purchases to be diminishing over time. China’s producer prices extended the longest slide since the 1990s in December, adding to evidence that the world’s second-largest economy weakened last month.


The earnings season for December 2013 quarter has officially started, with Infosys earnings announcement. Markets on Friday reacted mildly to Infosys’s earnings result which was up, both in rupee and dollar terms. However, revenues in dollar terms grew anemically, despite an improved American economy. However, Infosys management upgraded their outlook and expects dollar income to grow at double-digits for March 2014 quarter.


For the week, among the other indices on the NSE, the top two performers were  Pharma (3%) and Media (2%) while the worst two performers were PSU Bank (5%) and Realty (7%).


Among the Nifty stocks, the top five stocks for the week were Dr. Reddy's Lab (5%); Sun Pharma (5%); Coal India (4%); H C L Tech (3%) and ONGC (3%) while the Jaiprakash Associates (8%); Axis Bank (8%); D L F (7%); Hindalco Industries (7%) and Tata Steel (7%).


Of the 1,271 companies on the NSE, 556 companies closed in the green, 673 companies closed in the red while 42 companies closed flat.


Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


Top ML sector


Worst ML sector


Oil & Gas


Real Estate






Software & IT Serv




Farm & Farm Inputs






Non-Ferrous Metals




Sensex, Nifty still directionless: Friday closing report

The index is possibly getting ready to put in a short rally

The improved result of Infosys, declared before market hours, on the back of recovering US economy and strengthening dollar and the upward revision of the it future guidance helped improve market sentiments. Today although the market had a slightly higher opening after hitting the days low the indices soon began its upward journey which went upto 1.45 pm after which the market started giving up gains and closed almost at the same level as yesterday.


The Sensex opened at 20,761 and moved up to the level of 20,971 from the low of 20,625 and closed at 20,758 (up 45 points or 0.22%) while the Nifty which opened at 6,179 hit a low of 6,140 before hitting the high of 6,239. Nifty closed at 6,171 (up 3 points or 0.05%). NSE recorded a volume of 70.10 crore shares.


Market today awaits industrial production data for November 2013 to be released after trading hours.


Infosys raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company increased its dollar revenue growth guidance for this financial year to 11.5-12% from 9%-10% earlier and raised the rupee revenue growth forecast to 24.4%-24.9% for the financial year ending March 31, 2014, from 21%-22% estimated earlier.


On the macro front, India’s trade deficit widened in December 2013 on slowing export growth, data released by government today, 10 January 2014 showed. The trade deficit stood at $10.14 billion in December 2013, compared with $9.22 billion in November 2013. Merchandise exports rose 3.49% year-on-year to $26.35 billion, slowing down from a 5.86% pace in November. Imports fell 15.25% year-on-year to $36.49 billion as gold and silver imports dropped. For the April-December period, exports aggregated $230.3 billion and imports $340.3 billion while the trade deficit stood at $110 billion.


US indices closed flat. The number of Americans who applied to receive unemployment benefits in the first week of this year fell to the lowest level since the end of November. In the week ended January 4, initial jobless claims fell by 15,000 to a seasonally adjusted 330,000, the US Department of Labor said Thursday. Janet Yellen, incoming Federal Reserve chairwoman, said in an interview on Thursday that the US economy would see stronger growth this year.


Asian indices had a mixed performance. Jakarta Composite was the top performer which rose 1.28% while Shanghai Composite was the worst performer which fell 0.71%.


China's exports rose 4.3% in December from a year earlier, according to reported data, after surging 12.7% in November. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion.


European indices were trading in the green and the US Futures too were trading higher.


The Bank of England on Thursday, 9 January 2014, left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009.


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