Sensex, Nifty in a highly bullish mode: Weekly market report

Nifty has moved to a new orbit but is highly overbought

The BSE Sensex closed the week that ended on 7th March, at 21,919.79 (up 799.67 points or 3.79%), while the NSE Nifty closed at 6,526.65 (up 249.70 points or 3.98%) for the week. Both the indices hit and closed at all time highs on Friday.


On Monday the market snapped last five days of upmove. The indices closed in the negative on the back of geopolitical tension over Ukraine and an official gauge of Chinese manufacturing dropping to an eight-month low. Nifty closed at 6,221 (down 56 points or 0.88%).


Back home, up from 51.4 in the previous month to 52.5 in February, the headline HSBC India Purchasing Managers' Index (PMI) signalled a solid and stronger improvement in business conditions across the country's goods-producing sector, Markit Economics said.


With the global bourses mostly closing in the positive on the news that Russian President Vladimir Putin ordered his troops back to base which raised hopes of a peaceful solution to the recent geopolitical tensions in Ukraine, the domestic indices also moved higher. Nifty closed at 6,298 (up 77 points or 1.23%).


The data on manufacturing expanded at a faster pace than projected in February.  The Institute for Supply Management's manufacturing index rose to 53.2 in February from 51.3 a month earlier.


The Nifty continued to move higher on Wednesday and closed at 6,329 (up 31 points or 0.49%). Private sector output across India rose for the first time in eight months during February. The seasonally adjusted HSBC India Composite Output Index posted 50.3 in February 2014, higher than 49.6 in January 2014, indicating a fractional rate of expansion.


State-run banks' bad loans are anticipated to be slightly higher by March-end from a year earlier, Finance Minister P Chidambaram said on Wednesday after reviewing their quarterly performance. He added that the banks recovered bad loans worth Rs18,933 crore during April to December 2013.


For the third consecutive session, Nifty closed in the positive. On the data on shrinking of India's current account deficit the Nifty closed at its all time high of 6,401 (73 points or 1.15%). India's CAD narrowed sharply to $4.2 billion (0.9% of GDP) in Q3 of 2013-14 from $31.9 billion (6.5% of GDP) in Q3 of 2012-13 which is also lower than $5.2 billion (1.2% of GDP) in Q2 of 2013-14. The lower CAD was primarily on account of a decline in the trade deficit, as merchandise exports picked up and imports moderated, particularly gold imports.


Richard Fisher, president of the Federal Reserve Bank of Dallas, on Wednesday said he was concerned about "eye-popping levels" of some stock market metrics, and said the central bank has to monitor the signs carefully to make sure another bubble isn't forming.


The indices again closed at a new high after a massive rally on Friday. Nifty closed at 6,527 (up 126 points or 1.96%) with investors betting that a BJP-led government, headed by Narendra Modi will assume power within a couple of months.

For the week, among the other indices on the NSE, the top two performers were Realty (13%) and Bank (10%) while the worst two performers were Pharma (5%) and I T Sector (3%).


Among the Nifty stocks, the top five stocks for the week were D L F (18%); Hindalco Industries (18%); Bank of Baroda (18%); I C I C I Bank (15%) and Jaiprakash Associates (14%) while the top five losers were Dr. Reddy's Lab (6%); H C L Technologies (6%); Wipro (5%); Sun Pharma (5%) and Lupin (3%).


Of the 1,393 companies on the NSE, 945 companies closed in the green, 407 companies closed in the red while 41 companies closed flat.


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


ML Top sector


ML Worst sector


Real estate






Software & IT Services




Consumer Products


Non-Ferrous Metals






Foods & Beverages




Sensex, Nifty in a massive rally: Friday closing report

Nifty will continue to hit new highs over the course of the next few days. Any market decline will lead to buying by investors

Indian markets on Friday again made a new lifetime high and recorded the highest daily absolute gain since 18 November 2013. The optimism, which came after yesterday’s data on shrinkage of current account deficit, was carried forward with the positive data from the US. Provisionally, the FIIs are estimated to have invested a huge Rs2,577 crore in India today.


The BSE 30-share Sensex opened at 21,539 while the NSE 50-share Nifty opened at 6,414. The market went higher almost all through the session and hit a high of 21,961 and 6,538. While Sensex closed at 21,920 (up 406 points or 1.89%), Nifty closed at 6,527 (up 126 points or 1.96%). The NSE recorded one of the highest volumes ever -- of 100.03 crore shares.


Finance minister P Chidambaram said on Friday that the economy certainly is more stable today than what it was 18 months ago. This is reflected in the strengthening of the rupee which is reflected in heightened interest of investors, both FDI and FII. He also said that the inflation target will be set by the parliament and the Reserve Bank of India will implement it.


US indices closed mostly higher. The jobless claims fell to the lowest level in three months. Fewer Americans than projected filed applications for unemployment benefits last week however the separate data indicated factory goods orders in January fell 0.7% compared more than forecast. The market now awaits US non-farm payrolls report later today.


President Barack Obama said that the US and its allies will keep raising pressure on Russia to back down in Ukraine and held open the possibility of further sanctions if Vladimir Putin's government doesn't respond.


Asian indices had a mixed performance. Nikkei 225 (0.92%) was the top gainer while KLSE Composite (0.35%) was the top loser.


European indices were trading in the red while US futures were trading marginally higher.


In Europe, the European Central Bank kept interest rates unchanged at a record low of 0.25% on Thursday, as stronger inflation and economic output reduced the need for officials to take action.


The Bank of England (BoE) also left interest rates at a record low of 0.5% and its gilt purchase target unchanged at £375 billion ($617 billion), as expected.


Many more retirement homes for the elderly in the offing

Retirement homes offer tremendous opportunity and scope for real estate business to take professional care for the elderly citizens who are now left to fend for themselves!

The house of Tatas is known for their charitable disposition. And, when during the press conference in Delhi, Brotin Banerjee, managing director and chief executive of Tata Housing stated that they plan to invest Rs1,200 crore for developing 13 housing projects for senior citizens, as retirement homes, in the next five years, it came as a pleasant surprise to one and all.

It appears that Tata Housing retirement home plan covers cities like Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Mumbai and Pune. Full details are expected in due course. Their first project, under this scheme, is already under way in Bengaluru, basic details of which were made public, sometimes in May last year.

According to information available, there are 98 million people in India who are above 60 years of age and this is likely to reach a staggering 200 million by 2030! In line with the general Indian heritage and traditional family habits, a large number of them may continue to be living with their children, particularly the males (sons) who look after the ageing parents. Now the trend is changing, with the lifestyle of children needing "space" to live their "own way of lives" instead of being tied down to age-old systems! On the top of this, a very large number of Indians now live abroad, estimated to be around 30 million or thereabouts, and do continue to "support" their parents with financial remittances, several overseas restrictions (like residence visa in many countries) obliges them to keep their parents back in India!

In fact, old peoples' homes have been in operation for some time in the country, and not many can compared anywhere to be near traditional homes that can take loving care of ageing parents. This is an area which offers tremendous opportunity and scope for real estate business who can take professional care for the elderly citizens who are now left to fend for themselves!

When Tata Housing announced the Riva Residence in Bengaluru as a retirement home for the seniors above the age of 55 years, the response was said to be overwhelming with more than 4,000 enquiries from all over the country! After a study, Tata Housing, it appears, is planning to set up 2,000 such retire homes, involving 13 projects, to be completed by 2018, at an estimated cost of Rs1,000 crore to Rs1,200 crore. Its own estimate is that the retirement homes would be worth about Rs4,000 crore, and, their own initial target to achieve will be in the vicinity of 15%.


Full details of Riva Residences would be available for the reader to access at This project, according to the available information, is planned to cover 187 units in a 4.5 acre area with the projected cost of Rs70 crore. One bedroom flat of 800 square feet (costs Rs45 lakh) and a 2 bedroom flat (at Rs65 lakh) covering 1,200 square feet. Riva residences are located off Tumkur road and offer wellness, comfort, safety, security and include gym and recreational facilities with a 10,000 sq feet club house, apart from a well set up kitchen to cater to the needs of the residents. Additionally, Apollo Health services have been tied up to take care of the residents needs. It appears that Tata Capital, Central Bank and Axis Bank will also provide loan facilities to potential customers for the above project.

Moneylife has carried extensive coverage on retirement homes, in the magazine issue dated 26 January 2012. Almost every major city and town can claim to have old people's home in various manner and forms. Those who need such facilities would do well not only consult a few known friends in the concerned city/town, but also actually visit, stay for a few days, paying the charges demanded, to be absolutely sure that the chosen centre would meet their needs. After all, once financial commitments are made, it would quite difficult to cancel such agreements.

In any case, one of the main reasons why we took up this issue is present the full, available facts to our readers, but at the same time, look at this announcement as the forerunner of many retirement homes to come up from corporate houses.

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)


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