Stocks
Sensex, Nifty under pressure – Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex were struggling to rally. The major indices of the Indian stock markets were moving sideways during the week and have closed on Friday with losses of 0.74%-1.41%. The weekly trends of the major indices of the Indian stock markets are given in the table below:
 
 
Disappointing macro-economic data subdued the Indian equity markets on Monday. Consequently, key indices traded flat -- marginally in the green during the mid-afternoon session, as heavy selling pressure was witnessed in banking, capital goods and oil and gas stocks. Initially, the key indices opened on a positive note on Monday, in sync with their Asian peers. However, investors were disappointed after a key macro-economic data showed a faster rise in annual wholesale inflation. 
 
India's annual wholesale price index (WPI) moved up into the positive zone at 0.34% for April, from  (-)0.85% in March and (-)2.43% during the corresponding month of the previous year. The WPI moved up after staying in negative zone for 17 straight months, mainly on the back of a rise in global commodity prices. The rise comes after the Consumer Price Index (CPI) for last month also showed an upward movement in annual retail inflation. The rise in both the inflation indices has reduced the chances of the Reserve Bank of India (RBI) to further ease its key lending rates during the monetary policy review scheduled in June. 
Apart from the WPI, investors' sentiments were subdued after data released on May 13 showed that India's merchandise exports in April fell for the 17th straight month. Last month's exports were valued at $20.57 billion -- down 6.74% against $22.05 billion in the like month of last year.
 
Besides, selling pressure was witnessed in the banking sector after Bank of Baroda (BoB) reported its second consecutive quarter of losses. The BoB's quarterly results were released after the market hours last Friday.
 
On Tuesday, key indices made gains during the late-afternoon trading session, as healthy buying was witnessed in stocks of oil and gas, automobile, capital goods and banking sectors. However, investors were seen cautious, given the recent negative macro-economic data and poor quarterly results from state-owned banks. Key economic indicators show rising inflation trend that has reduced the chances of the Reserve Bank of India (RBI) further easing its key lending rates during the monetary policy review scheduled for June.  In addition, the risk-taking appetite of investors was subdued a day ahead of the US Federal Open Market Committee (FOMC) releasing its minutes. The US FOMC minutes assume significance as they can give vital cues on the future course of US interest rates. On the BSE, there were 1,303 advances and 1,300 declines at the close of Tuesday’s trading.
 
State-run Indian Oil Corp (IOC) on Tuesday raised transport fuel prices, with petrol becoming costlier by 83 paise a litre and diesel by Rs.1.26, both at Delhi and inclusive of local levies, with corresponding increase in other states. Indian Oil Corporation share prices closed at Rs407.45, down 0.48% on the BSE. US stocks posted solid gains on Monday as investors cheered over a strong rebound in oil prices.
 
Negative Asian and US indices and disappointing quarterly results pushed the Indian equity markets down on Wednesday. This led the key indices to trade in the red during the mid-afternoon trade session, as selling pressure was witnessed in automobile, banking and information technology (IT) stocks. The Asian and domestic markets receded on the back of renewed fears of a US rate hike. In addition, reduced chances of the Reserve Bank of India (RBI) to further ease its key lending rates during the upcoming monetary policy review subdued investors' sentiments.
 
Public sector lender Punjab National Bank (PNB) on Wednesday posted a massive net loss of Rs.5,367.140 crore for the fourth quarter ended March 2016 caused by bad loans, as compared to net profit of Rs.306.56 crore in the corresponding period of last fiscal. For the entire fiscal 2015-16, the bank has posted a net loss of Rs.3,974.39 crore for the year ended March 31, 2016 as compared to net profit of Rs.3,061.58 crore for the year ended 31 March 2015, PNB said. PNB shares closed at Rs76.20, up 3.25% on the BSE.
 
Negative global cues, coupled with lower crude oil prices and a weak rupee, dragged the Indian equity markets lower on Thursday. This led the key indices to trade in the red during the mid-afternoon session, as heavy selling pressure was witnessed in the banking, capital goods and fast moving consumer goods (FMCG) stocks. Initially, the key indices opened on Thursday on a flat note, in sync with their Asian peers. The Asian and domestic markets receded on the back of hawkish comments from the US Federal Reserve, which increased the chances of a future rate hike. The US Federal Open Market Committee's (FOMC) April minutes disclosed that the US central bank might raise key lending rates in June. A hike is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. Besides, lower crude oil prices and a weak rupee eroded investors' confidence. However, investors' sentiments turned slightly positive after the electoral victory of the Bharatiya Janata Party (BJP) in Assam, which could potentially strengthen the central government's ability to push through economic reforms. On the BSE, there were 919 advances and 1,628 declines, while 165 were unchanged.
 
On Friday, positive global indices, along with higher crude oil prices and value buying, pushed the Indian equity markets higher. This led the key indices to trade marginally in the green, as healthy buying was witnessed in automobile, fast moving consumer goods (FMCG) and consumer durables stocks. However, the market turned bearish in late afternoon and fell by around 0.45%. There were 885 advances and 1,682 declines on the BSE. 

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Nifty, Sensex headed lower – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex were still trendless. The major indices of the Indian stock markets suffered a sharp correction and losses at Thursday’s closing of trading hours were around 1.20% over Wednesday’s close. The trends of the major indices in the course of Thursday’s trading are given in the table below:
 
 
Negative global cues, coupled with lower crude oil prices and a weak rupee, dragged the Indian equity markets lower on Thursday. This led the key indices to trade in the red during the mid-afternoon session, as heavy selling pressure was witnessed in the banking, capital goods and fast moving consumer goods (FMCG) stocks. Initially, the key indices opened on Thursday on a flat note, in sync with their Asian peers. The Asian and domestic markets receded on the back of hawkish comments from the US Federal Reserve, which increased the chances of a future rate hike. The US Federal Open Market Committee's (FOMC) April minutes disclosed that the US central bank might raise key lending rates in June. A hike is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. Besides, lower crude oil prices and a weak rupee eroded investors' confidence. However, investors' sentiments turned slightly positive after the electoral victory of the Bharatiya Janata Party (BJP) in Assam, which could potentially strengthen the central government's ability to push through economic reforms. On the BSE, there were 919 advances and 1,628 declines, while 165 were unchanged.
 
In a move towards ease of doing business in India, the government is consolidating 44 labour laws into just four and the draft bills will be tabled in the monsoon session of parliament beginning mid-July, the top official in the labour ministry has said. "We are realigning 44 labour laws into four. Out of that two are already ready -- Code on wages is already with the cabinet, Code on industrial relations is with the Ministry of Law," Shankar Aggarwal, Secretary, Ministry of Labour and Employment, told IANS in an interview. Tripartite talks for the other two laws -- one on safety and working conditions of workers and the other for their social security and welfare -- will be held among the central and state governments, trade unions, and employers represented by the top industry chambers, he said. 
 
The Pakistani senate committee on National Food Security and Research has asked the government to stop the import of cotton lint from India. Committee chairman Syed Muzaffar Hussain Shah, chairing the meeting on Wednesday, said the country's agriculture economy would be ruined if the import of 0.5 million bales of cotton from India through the Wagah border checkpost was not stopped, Dawn online reported. It observed that the last season showed a 30% decline in cotton production, and added the figure could rise if immediate measures were not taken. 
 
In line with the theme of FII and FDI investments in India, United States businesses will sign deals worth $27 billion with India over the next two years, a top US official said in New Delhi on Wednesday. “Over the last two years, US businesses invested over $15 billion in India, and will reportedly sign deals worth another $27 billion over the next two years,” Arun M. Kumar, assistant secretary for global markets and director general for the US and foreign commercial service, said. Talking about increasing US investment in the Indian market, he said, “American companies are responding. Last year, US companies invested more in Indian equities than in China,” he added. In particular, US companies’ unique capabilities can help India address its priority needs and meet Prime Minister Narendra Modi’s economic development goals, Kumar said. He also acknowledged India's e-commerce market as the fastest growing in the world, and said that US companies are contributing to the sector.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Nifty, Sensex still trendless – Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex were trendless. The major indices in the Indian stock markets reversed direction and made minor losses over Tuesday’s close after falling sharply at the open. Trading volumes were lower than usual. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
Negative Asian and US indices and disappointing quarterly results, pushed the Indian equity markets down on Wednesday. This led the key indices to trade in the red during the mid-afternoon trade session, as selling pressure was witnessed in automobile, banking and information technology (IT) stocks. The Asian and domestic markets receded on the back of renewed fears of a US rate hike. In addition, reduced chances of the Reserve Bank of India (RBI) to further ease its key lending rates during the upcoming monetary policy review subdued investors' sentiments.
 
Public sector lender Punjab National Bank (PNB) on Wednesday posted a massive net loss of Rs.5,367.140 crore for the fourth quarter ended March 2016 caused by bad loans, as compared to net profit of Rs.306.56 crore in the corresponding period of last fiscal. For the entire fiscal 2015-16, the bank has posted a net loss of Rs.3,974.39 crore for the year ended March 31, 2016 as compared to net profit of Rs.3,061.58 crore for the year ended 31 March 2015, PNB said. PNB shares closed at Rs76.20, up 3.25% on the BSE.
 
The Foreign Investment Promotion Board (FIPB) has approved Rs.60.73 crore worth of foreign direct investment (FDI) proposals of Wockhardt, Aurobindo Pharma and Advanced Enzyme Technologies. "The government has approved three proposals of FDI amounting to Rs.60.73 crore approximately," the finance ministry said in a statement here on Wednesday. The decision was taken at a FIPB meet held on April 29, the statement said. The FIPB has also recommended to the Cabinet Committee on Economic Affairs (CCEA) for approval the Axis Bank proposal to increase the foreign investment limit in the bank to 74% from the current 62%, the statement said.  The Axis Bank's proposal involves FDI of Rs.12,973.14 crore, it said. Wockhardt shares closed at Rs952.95, up 0.61% on the BSE. Aurobindo Pharma shares closed at Rs783.55, up 0.93% on the BSE. Axis Bank shares closed at Rs501.35, down 0.33% on the BSE.
 
Higher provisions for bad loans and contingencies turned state-run Syndicate Bank into red, with a whopping Rs.2,158 crore net loss for fourth quarter of 2015-16 from net profit of Rs.417 crore in like period year ago on standalone basis. "Total income, including interest for quarter under review also decreased marginally (1.1%) to Rs.6,525 crore from Rs.6,599 crore in same period year ago on standalone," the Manipal-based bank said in a statement here on Tuesday. For 2015-16 too, the bank posted a net loss of Rs.1,644 crore as against net profit of Rs.1,523 crore in 2014-15 on standalone basis. "Total income for fiscal under review, however, increased 8.4 percent to Rs.25,707 crore from Rs.23,725 crore year ago," the statement said. On consolidated basis, net loss for 2015-16 was Rs.1,517 crore as against net profit of Rs.1,664 crore in FY 2015. Total income (consolidated), however, increased to Rs.25,831 crore for FY 2016 from Rs.23,865 crore in 2014-15. "Provisions (other than tax) and contingencies shot up 237% year-on-year to Rs.2,412 crore in fourth quarter from Rs.715 crore in like period year ago and 116% YoY to Rs.4,348 crore for fiscal from Rs.2,011 crore in FY 2015 on standalone basis," the bank said in its profit-and-loss statement. Gross non-performing assets (GNPAs) ratios for the last quarter and fiscal doubled to 6.7% from 3.13% in like period year ago and net performing assets (NPAs) ration zoomed to 4.48% from 1.90% in same period year ago. "Cash recovery in NPA was Rs.2,702 crore in FY 2016 as against Rs.2,195 crore in FY 2015," the statement added. Syndicate Bank shares closed at Rs68.45, up 2.93% on the BSE.
 
The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday decided shift as many as 51 scrips to the trade-to-trade (the 'T' group) segment, while NSE would move 10 stocks to the category. The scrips to be moved to the restrictive segment on both the bourses include Resurgere Mines & Minerals, Sezal Glass, HMT Ltd, Suryajyoti Spinning Mills, Capital Trust Ltd, Kemrock Industries and Exports, Lumax Automotive Systems, Acropetal Technologies Ltd, Spectacle Ventures Ltd and others. No speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory in the segment.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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COMMENTS

Amit Dhur

1 year ago

Nifty BUY trend continues, 8336 on the cards

Stock Market Today by Shailesh Saraf 30th May 2016
Indian Market Outlook:
FII continued their buying spree across all segments in the Indian markets after buying worth Rs.15747 Cr in Index Options, worth Rs.8474 Cr in Index Futures and worth Rs.1095 Cr in the cash segment in last 5 days.
Nifty the Indian benchmark index saw consolidation at 8200 levels after 7720 the low made on Tuesday 24th, the rally of more than 500 points in four trading sessions with the breakout of critical level of 8000 and the huge buying of FII and PRO buy in future and options which suggests that 8336 are in the cards to come.

International Market Outlook
The Asian markets continue their rally after trading in green today as well. The US markets were closed yesterday for Memorial Day, has also given a breakout of 2100 levels in future index. Non-farm payroll data which is one of the major data events is on Friday which would bring in further stimulus for the FED rate hike scheduled for the June 15 meeting. Traders would also keenly watch the developments around the BREXIT which is scheduled for the 23rd June. FII Index Future Open Interest for the Week FII Options Open Interest for the Week.
https://www.dynamiclevels.com/en/shailesh-saraf-stock-market-today-310516

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