Sensex, Nifty may give up some gains: Weekly Market Report
The indices may rally for a day or two before a pause or a decline 
The S&P BSE 30-share Sensex closed the week that ended on 18th July at 25,642 (up 617 points or 2.47%), while the NSE’s 50-share CNX Nifty closed at 7,664 (up 204 points or 2.75%) for the week. Previous week, we had mentioned that Indian indices may rally. This week began with lot of indecisiveness on the bourses. Although Nifty hit its lowest level since 5 June 2014, it managed to recover and closed at 7,454 (down 5 points or 0.07%), on Monday. The highlight of the day was the inflation, based on the WPI, eased to 5.43% in June 2014, from 6.01% in May 2014. 
According to the SABB/HSBC Emerging Markets Index (EMI), India saw the steepest expansion in output since February 2013. SABB/HSBC EMI is a monthly indicator derived from the PMI surveys. It indicated stronger output growth across global emerging markets in June.
Breaking five days of negative moves, the benchmarks closed Tuesday near the day’s high. Nifty closed at 7,527 (up 73 points or 0.97%). The data released by the government after trading hours on Monday showed the annual rate of inflation, based on the combined consumer price indices (CPI) for urban and rural India, eased to 7.31% in June 2014, from 8.28% in May 2014.
As we anticipated last week, the market saw a big jump on Wednesday with Nifty closing at its highest level since 7 July 2014. Nifty closed at 7,624 (up 98 points or 1.30%). India's trade deficit stood at $11.76 billion in June 2014, which was higher than the trade deficit of $11.28 billion in June 2013.
The Reserve Bank of India (RBI) has announced incentives to issue long term bonds for a minimum maturity of seven years, to raise resources for financing long term projects in infrastructure sub-sectors and affordable housing.
The leaders of the BRICS countries agreed to create a $100 billion BRICS Bank named as New Development Bank and a reserve fund of the same size to challenge Western dominance over global finances. The first term of the presidency of the bank will be held by India.
The positive data coming from the US said, where the Federal Reserve said in its Beige Book business survey, that the economic growth was modest to moderate in the latest period, as all 12 of its districts reported stronger consumer spending and expanded manufacturing, helped to keep up the market move. 
Back home, on Thursday, Nifty closed at 7,640 (up 16 points or 0.21%). On Friday, after opening lower, the benchmarks managed to close in the positive for the fourth consecutive session. Nifty closed the week at 7,664 (up 23 points or 0.31%).
Banking stocks and finance stocks were in focus after market regulator Securities and Exchange Board of India (SEBI) put out draft regulations for infrastructure investment trusts and RBI put out the draft guidelines for those seeking a license to set up a payments bank or a small bank.
For the week, among the other sectoral indices on the NSE, the two top performers were Metal (7%) and Bank (7%), while the two worst performers, FMCG and Pharma ended flat. Among the Nifty stocks, the top five stocks for the week were Tata Steel (12%), Hindalco Industries (11%), IDFC (10%), Axis Bank (10%) and ICICI Bank (9%); while the top five losers were Hindustan Unilever (3%), Bajaj Auto (2%), GAIL (2%), Infosys (2%) and Dr. Reddy's Lab (2%).
Of the 1,449 companies on the NSE, 1,087 companies closed in the green, 335 companies closed in the red, and 27 companies closed flat. 
Out of the 27 main sectors tracked by Moneylife, the top five and bottom five sectors for this week were:


Sensex, Nifty will struggle to rally – Friday closing report
For the current rally to end, the the indices must close below any previous day’s low
Although the Indian market opened Friday in the negative follwing a sharp fall in the US markets, it showed an upward bias. Marching up for almost the entire session the indices kept up the trend of closing in the positive for the fourth consecutive session.
S&P BSE Sensex opened at 25,558 while NSE’s CNX Nifty opened at 7,630. Immediately both the indices hit the low of 25,441 and 7,596. By the end of the session the benchmarks hit the day’s high at 25,713 and 7,685 and closed at 25,642 ( up 80 points or 0.31%) and 7,664 (up 23 points or 0.31%), respectively. The NSE recorded a volume of 86.06 crore shares. India VIX rose 0.87% to close at 15.0950.
The highlight of the day was the draft regulations for infrastructure investment trusts by the Securities and Exchange Board of India (SEBI) and draft guidelines issued by the Reserve Bank of India (RBI) for those seeking a license to set up a payments bank or a small bank.
To provide easier financing options to developers of public works infrastructure investment trusts, regulated by SEBI, would be formed. Such trusts will be able to invest in infrastructure projects only directly or through special purpose vehicles (SPVs). For public-private partnership (PPP) projects, investments can be routed only be through an SPV, SEBI said.
The RBI in its guidelines said among other things that the minimum paid up capital required for both categories of bank licenses would be Rs100 crore of which the promoter would have to contribute at least 40% initially. Payments banks can accept deposits and remittances of funds but cannot provide loans. Small banks can lend, but have more limited areas of operations than a full-fledged commercial lender.
Tata Consultancy (2.58%) was among the top two gainers in the Sensex 30 pack. The company posted a net profit of Rs5,096.87 crore for the quarter ended June 2014 as compared to Rs3,461.89 crore for the quarter ended June 2013. Revenue has increased from Rs14,478.65 crore to Rs17,438.43 crore for the relevant period.
Tata Power (2.58%) was the top loser in the Sensex 30 stock. Tata Power foresees growth of India’s power sector to be affected adversely due to various reasons which includes, insufficient availability of coal, costlier imported fuel, delays in land acquisition and environmental clearances.
Exide Industries which recently hit its 52 week high on the BSE on 7 July 2014 was the top gainer (4.07%) in the ‘A’ group on the BSE.
Indian Hotels (down 6.96%) was the top loser in the ‘A’ group on the BSE.
US indices closed in the negative on Thursday following the crash of Malaysian Airliner brought down by Ukranian rebels.
Asian indices showed a mixed performance. Jakarta Composite (0.31%) was the top gainer while Nikkei 225 (1.01%) was the top loser. European indices were trading lower while US Futures were trading marginally higher.


No decision on FDI in multi-brand retail trading yet

The Modi government has reiterated that FDI up to 100% is permitted in single brand retail trading and no decision on FDI in multi-brand retail trading has been taken


The Indian government on Friday said it has not taken any decision on permitting foreign direct investment (FDI) in multi-brand retail trading.


Nirmala Sitharaman, minister for commerce and industry, in a written reply to the Lok Sabha, said, "As per the extant FDI policy, FDI up to 100% is permitted in single brand retail trading. No decision on FDI in multi-brand retail trading has been taken".


As per the current policy, 51% FDI is permitted in multi-brand retail trading. When the United Progressive Alliance (UPA)-led government announced the policy, the Bharatiya Janata Party (BJP) had strongly opposed.


Sitharaman, after assuming the office, had indicated that foreign players will not be allowed to open mega stores in the country, saying that FDI in multi-brand retail trade will adversely impact small traders and farmers.


There have been speculations however that the government would not roll back the policy and leave it to the states to implement it.


Till now, British retail major Tesco's plan has been approved by the previous government to enter the sector.


Replying to another question on FDI in e-commerce, the minister said that during April 2000 and April 2014, India has received $37.1 million FDI in the sector.


"As per extant FDI policy, FDI up to 100% under the automatic route is permitted in B2B e-commerce activities. The present policy does not permit retail trading in any form, by means of e-commerce, for companies with FDI engaged in the activity of single/ multi brand retail trading," she said.




shadi katyal

3 years ago

India needs investment in all sectors and would it not be better that GOI should take her hands off such investments and let the market economy take care of it and it will provide employment for many.

I listened to Mr. Jaitley on Defense and policy is same that with 49% raised from 29% foreign manufacturers should open factories in India and transfer technologies. What a dream when they have enjoyed 100% buying by India.
Let these firms come with their 100% investment and let them sell their shares to Indians in due course. Otherwise nation will always be dependent on foreign supplier as not much is devoted to R&D in Defence but 200 Crores for a statute which could have waited when nation starts flourishing.

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