It is not clear whether the market has discounted the possibility that there would be no rate cuts. Even if it has, gains will not last for more than a few days
The domestic market settled in the red this week, making it the third weekly close in the negative. The weakening rupee, which made fresh all-time lows in the early part of the week and concerns about the slowdown in growth, as highlighted by the economic indicators this week, was seen as the main reason for the decline. Investors will focus on announcements from the Reserve Bank of India (RBI), in its mid-quarter policy review on 17th June, for fresh direction.
The Sensex closed the week with a loss of 251 points (1.29%) at 19,178 and the Nifty settled 73 points (1.23%) at 5,808. It is not clear whether the market has discounted the possibility that there would be no rate cuts. Even if it has, gains will not last for more than a few days.
The market ended flat amid choppy trade on Monday on concerns of the rupee hitting its all-time low and political developments in Delhi. The weak rupee and a sell-off in metal stocks following CBI action saw the market declining over 1.5% on Tuesday. The benchmarks closed in the red on concerns about the economy as industrial growth declined to 2% in April and retail inflation eased less-than-expected.
The indices ended lower on Thursday on weak global cues and a weak rupee. The domestic market surged nearly 2% on Friday on hopes that the RBI will cut rates in its mid-quarter policy review on Monday.
BSE Oil & Gas (up 1%) was the lone gainer in the sectoral segment. BSE Consumer Durables (down 11%) and BSE Metal (down 5%) were the top losers.
The top Sensex gainers were Reliance Industries (up 4%), NTPC, Larsen & Toubro, Hindalco Industries (up 2% each) and Cipla (up 1%). The key losers in the week were Jindal Steel & Power (down 13%), Tata Power (down 9%), BHEL, Sterlite Industries (down 7% each) and Tata Steel (down 6%).
The top performers on the Nifty were RIL, Ambuja Cement (up 4% each), NTPC, Lupin and HCL Technologies (up 3%). JSPL (down 13%), Tata Power (down 9%), Sesa Goa (down 8%), BHEL (down 7%) and Tata Steel (down 6%) ended as the main losers for the week.
The wholesale price index (WPI) based inflation fell to 4.7% in May, down from stood at 4.89% in April. The fall was driven mainly by declining prices of manufactured items, even as prices of food articles inched up.
Retail inflation stood at 9.31% in May due to easing of prices of edible oil and protein-based items, even as vegetable prices inched up sharply. The consumer price index (CPI) based inflation stood at 9.39% in April.
The industrial production growth has slipped to 2.3% in April on account of dismal performance of manufacturing, mining and power sectors coupled with lower output of capital goods.
The Securities and Exchange Board of India (SEBI) will soon get powers to summon phone call records, emails and SMSes of persons it is probing for insider trading and other market manipulations. With these powers, SEBI aims to prevent black money coming into the market as well as to keep an eye on insider trading.
In international news, the US Federal Reserve will hold its two-day policy meeting next week, with Fed chairman Ben Bernanke scheduled to speak after the central bank’s decision on 19th June.
The upmove may continue if the Nifty closes above 5,830
The domestic market surged nearly 2% on hopes that the Reserve Bank of India (RBI) will cut rates in its mid-quarter policy review on Monday. The upmove may continue if the Nifty closes above 5,830. The National Stock Exchange (NSE) witnessed a turnover of 53.01 crore shares and advance-decline of 952:441.
The market opened in the positive on supportive cues from the Asian markets, which were in the green in early trade today. The Asian pack was trading higher as optimism from the US eased fears of the US Federal Reserve tapering its stimulus. Investors were focussed on the release of WPI inflation data later in the day for further direction to the market.
The Nifty opened 50 points higher at 5,749 and the Sensex started off at 18,960, a surge of 133 points over its previous close. The indices touched their lows in initial trade itself with the Nifty falling to 5,739 and the Sensex going back to 18,952.
Buying support from consumer durables, auto, realty and capital goods stocks soon saw the benchmarks gaining momentum and heading northward. A dip in the headline inflation in May to 4.70% from 4.89% in the previous month continued to boost investor sentiment in the noon session.
The benchmarks extended their gains in late trade on support from rate-sensitive sectors on hopes that the RBI will cut rates on Monday to spur growth. The market hit its high in the last hour of trade on help from Reliance and Tata Motors, which gained over 2% and 4%, respectively. The Nifty rose to 5,819 and the Sensex climbed to 19,213 at their respective highs.
The market snapped its three-day losing streak and settled with gains of nearly 2% on hopes of a rate cut on Monday. The Nifty gained 109 points (1.92%) to 5,808 and the Sensex jumped 351 points (1.86%) to settle at 19,178.
The broader indices also ended in the positive. The BSE Mid-cap index rose 1.19% and the BSE Small-cap index rose 1.03%.
All the sectoral indices ended in the positive. Among the top gainers were BSE Consumer Durables (up 3.52%); BSE Auto (up 3.01%); BSE Realty (up 2.86%); BSE Metal (up 2.50%) and BSE Capital goods (up 2.37%).
Out of the 30 stocks on the Sensex, 26 settled higher. The top gainers were Hindalco Industries (up 7.07%); Tata Motors (up 4.91%); Maruti Suzuki (up 4.09%); Tata Power (up 3.72%) and L&T (up 3.41%). The losers were Wipro (down 0.71%); Hero MotoCorp (down 0.41%); Cipla (down 0.24%) and Hindustan Unilever (down 0.24%).
The top two A Group gainers on the BSE were—Jet Air India (up 8.47%) and JSW Energy (up 7.95%).
The top two A Group losers on the BSE were—MMTC (down 9.98%) and Apollo Tyres (down 5.61%).
The top two B Group gainers on the BSE were—Menon Pistons (up 19.96%) and Wheels India (up 19.48%).
The top two B Group losers on the BSE were—Venus Universal (down 20%) and GG Dandekar (down 18.85%).
Of the 50 stocks on the Nifty, 45 ended in the in the green. The main gainers were Hindalco Industries (up 8.47%); Tata Motors (up 4.79%); Maruti Suzuki (up 4.08%); Jaiprakash Associates (up 4.03%) and Tata Power (up 3.71%). The losers were IndusInd Bank (down 1.47%); Hero MotoCorp (down 0.86%); Hindustan Unilever (down 0.18%); Bharti Airtel (down 0.07%) and Cipla (down 0.05%).
Markets across Asia closed on optimism from the US as retail sales rose the most in three months and jobless claims dropped. This apart, news reports suggested that the Fed may “push back” its decision to taper its bond buying programme on higher interest rates. The Chinese benchmark rose on news that homes sales in Beijing in the first five months of the calendar year 2013.
The Shanghai Composite rose 0.21%; the Hang Seng climbed 0.99%; the Jakarta Composite jumped 3.04%; the KLSE Composite gained 0.75%; the Nikkei 225 surged 2.52%; the Straits Times advanced 0.87% and the Seoul Composite settled 0.20% higher. Bucking the trend, the Taiwan Weighted fell 0.29%.
At the time of writing, two of the three European markets were in the green while the US stock futures were in trading with a mixed bias.
Back home, foreign institutional investors were net sellers of equities on Thursday amounting to Rs558.06 crore while domestic institutional investors were net buyers of equities aggregating Rs713.77 crore.
Tribhovandas Bhimji Zaveri will be introducing the scheme of NO making charges on certified diamond jewellery at all TBZ-The Original stores in Maharashtra and has made tie up with multi banks for ‘Easy installments scheme’ for this monsoon season from June 15, 2013 to June 30, 2013. The stock rose 1.42% to close at Rs206.50 on the NSE.
Solitaire Machine Tools has bagged orders worth over Rs5 crore for its newly developed grinding machines from two major auto ancillary manufacturers. The stock rose 2.88% to close at Rs12.50 on the BSE.