Stocks
Weekly Market Report: Nifty,Sensex may head higher
We had mentioned in last weeks closing report that the Nifty and Sensex were highly overbought. On Monday, the major indices of the Indian stock markets suffered a sharp correction to close more than 1.5% lower than last weeks close. Post the market holiday on Tuesday, the bulls struggled to take full control. Despite being in the black over three consecutive days, the indices were not able to recover from Monday’s losses. The Nifty ended the week 0.98% lower at 8,779 as compared to 8,866 as on last Friday’s close. The trends of the major indices in the course of the weeks trading are given in the table below:
 
 
On Monday, the increased possibility of a US rate hike and a rout in Asian and European equities dragged the Indian markets down, as heavy selling pressure was witnessed in automobile, banking and capital goods stocks. The BSE market breadth was skewed in favour of the bears -- with 2,033 declines and 688 advances. On the NSE, on Monday there were 186 advances, 1,251 declines and 53 unchanged. Data on the consumer price index released on Monday by the Central Statistics Office showed that the annual retail inflation eased by 100 basis points to 5.05% in August. With inflation easing, there is reduced pressure on aggregate demand and corporate earnings. 
 
India's direct tax collection was up by 15.03% to Rs1.89 lakh crore while the indirect tax collection jumped by 27.5% to Rs3.36 lakh crore during the April to August period this year, an official statement said on Monday. On indirect tax collection, the Finance Ministry statement said, "The figures for indirect tax collections (central excise, service tax and customs) up to August 2016 show that net revenue collections are at Rs3.36 lakh crore which is 27.5% more than the net collections for the corresponding period last year." The collection up to August 2016 indicates that 43.2% of the annual budget target of indirect taxes has been achieved, it said. The exchanges were closed on Tuesday on account of Eid.
 
On Wednesday, Indian equities market traded flat during the mid-afternoon trade session. Negative global cues, coupled with slide in factory output data for July and profit booking dented investors' sentiments. However, the BSE market breadth was tilted in favour of the bulls -- with 1,764 advances and 947 declines and 198 unchanged. On the NSE, on Monday, there were 1006 advances, 458 declines and 57 unchanged. India's annual rate of inflation based on wholesale prices moved up to 3.74% in August, from 3.55% in the month before, as per data released on Wednesday. 
 
On Thursday, both the key indices closed on a flat-to-positive note after a volatile trading session. The benchmark indices opened in the green, despite negative global cues. The Nifty edged up by 15.95 points or 0.18% to 8,742.55 points. The Sensex closed at 28,412.89 points -- up 40.66 points or 0.14%. The BSE market breadth was slightly tilted in favour of the bulls -- with 1,466 advances and 1,271 declines. Investors were cautious ahead of Bank of England's (BoE) monetary policy review. Besides, increased possibility of a US rate hike kept the global and local markets subdued. The US Fed's FOMC (Federal Open Market Committee) will meet on September 20-21. A hike in US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. It is also expected to dent business margins as access to capital from the US will become expensive.
 
On Friday, the benchmark indices opened in the black and managed to stay above water throughout the day’s trade. The benchmark indices opened in the green on the back of positive Asian markets. Though the bears tried to pull the indices lower post noon, the bulls remained in control. The Nifty closed at 8,779.85 with a gain of 0.43%, while the Sensex closed the week at 28,599.03. up 0.66% over Thursday’s close. The BSE market breadth was marginally tilted in favour of the bears -- with 1,418 declines and 1,275 advances. Good macro-economic data on foreign trade and positive Asian markets aided in the initial rally. However, a correction in the key European indices and the upcoming rate-setting meeting of the US Fed, capped gains.

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COMMENTS

V ganesan

8 months ago

It looks like the bulls want the support to be kept artificially at 8700 because they jacked up the prices of It stocks in the fag end of todays session.And they re firming up reliance industries because of its heavyweight in bothe the indices sensex and nifty.Without bank nifty they cannot jackup the indices.Time to be highly cautious and rise cash levels.

V ganesan

8 months ago

It looks like the bulls want the support to be kept artificially at 8700 because they jacked up the prices of It stocks in the fag end of todays session.And they re firming up reliance industries because of its heavyweight in bothe the indices sensex and nifty.Without bank nifty they cannot jackup the indices.Time to be highly cautious and rise cash levels.

600 kids die from malnutrition: So what? asks Maharashtra minister
Palghar (Maharashtra):  Maharashtra's Tribal Welfare Minister Vishnu Sawra faced the ire of tribals in Palghar whose children have perished due to malnutrition.
 
When he visited a tribal hamlet in Khoch village in the worst-hit Mokhada sub-district on Thursday evening, angry locals confronted the minister and demanded answers.
 
Some infuriated tribals asked him: "600 children have died here (in 2016) what have you done for us?"
 
"So what? The government is doing its work, implementing schemes.....," Savra retorted, as some of the enraged villagers virtually asked him to 'get out'.
 
One grieving young tribal woman, whose two-year-old son died due to severe malnutrition late August, accosted the minister at the doorstep of her hut: "Where were you so long.. My son died 15 days ago and you come now? You want to click pictures? We don't want to meet you. No need to come here."
 
Other villagers also joined the chorus and said there was no need for the minister to come, and Savra arrogantly shot back: "If you don't want me to come, then I won't".
 
Savra's comments were dubbed "insensitive" by the Congress, Nationalist Congress Party and even ruling alliance partner Shiv Sena, with several leaders including Leader of Opposition (Congrss) Radhakrishna Vikhe-Patil, demanding his resignation or dismissal from the cabinet.
 
Later, Savra alleged that some activists of Shramjeevi Sanghatana, a local organisation, were instigating the tribals and that his comments were being "twisted out of context," even as videos of the encounter went viral on the social media.
 
The locals expressed their anger that though claims are made of huge funds being allocated for their welfare, they received no funds and had to even 'beg' for money to treat the child of the young tribal woman.
 
The child's condition suddenly worsened last month and he was rushed to a Nashik government hospital, but succumbed due to suspected malnutrition symptoms.
 
Stung by the villagers' aggressive attitude, the BJP leader who is also Guardian Minister for the district, beat a hasty retreat along with his motorcade from the village.
 
Governor C. V. Rao had directed three ministers -- Minister for Women and Child Development Pankaja Munde, Tribal Welfare Minister Vishnu Savra and Minister for Public Health Deepak Sawant -- to take urgent remedial steps to tackle malnutrition not only in Palghar but in other parts of the state also.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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SC extends Sahara chief's parole by one week
New Delhi: The Supreme Court on Friday extended, by one week, the parole of Sahara chief Subrata Roy till September 23.
 
Roy's parole, last extended on July 11, was to expire on Friday.
 
The bench headed by Chief Justice T.S. Thakur extended the interim arrangement of granting him parole while recording a statement that a sum of Rs 300 crore, as ordered earlier by the court, was deposited.
 
The apex court's order said that the statement by Sahara was not disputed by the Securities and Exchange Board of India (SEBI) counsel Arvind Datar.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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