Nifty, Sensex weak. Bank Nifty struggling – Tuesday closing report
Nifty will turn higher, it can stay above 8,300, while Bank Nifty is in a no-man’s land
 
We had mentioned in Monday’s closing report that if the NSE’s CNX Nifty closes below 8,320 it will turn weaker. On Tuesday, except for the time when it hit its intra- day high, the 50-stock benchmark moved in the red for remaining session. Nifty reached exactly the break point mentioned above and closed marginally above it.
 
S&P BSE Sensex opened at 27,634 while Nifty opened at 8,377. Both the benchmark indices moved from the high of 27,676 and 8,379 to the low of 27,474 and 8,320, respectively. Sensex closed at 27,531 (down 112 points or 0.41%) while Nifty closed at 8,339 (down 31 points or 0.37%). Today although the Bank Nifty moved in the red for most of the session, during last few minutes, the index gained momentum and closed in the green. It opened at 18,339 and moved in the range of 18,226 and 18,378 and closed at 18,329 (up 4 points or 0.02%). NSE recorded a volume of 65.87 crore shares. India VIX rose 0.80% to close at 17.0675.
 
Reserve Bank of India (RBI) Governor Dr Raghuram Rajan had said that while the country’s macro-economic parameters have improved, growth was still slow in picking up. Meanwhile, finance Minister Arun Jaitley said India has to bring the tax rate to global level while at the same time remove the exemptions.
 
The Ministry of Labour & Employment Tuesday announced that the government has decided to constitute an inter-ministerial committee to hold threadbare discussions with representatives of Central Trade Unions on 10-point charter of demands and other issues being raised by them and for recommending measures to address those issues.
 
Government expects inflation to remain under control as it has adequate stocks to deal with shortage of foodgrain in the eventuality of poor monsoon, Chief Economic Advisor Arvind Subramanian said today.
 
The RBI has room to further ease its monetary policy, he told reporters.
 
A slowdown in exports is likely to bring down India's growth rate by 0.4% point in 2015, a report by global brokerage firm HSBC has said.
 
Retail investors' holding in NSE-listed companies has hit a 6-year high of 21.35% at the end of March 2015, with a valuation of nearly Rs8 lakh crore, from 20.99% on March 2014, according to Prime Database, the holding went up to 21.35% at the end of March 2015. 
 
In other words, the market valuation (in terms of Nifty-50 market cap over the period) is up by 25.79%. At the end of March 2015 the Nifty was up by 26.65% since March 2014 which means retail investors have actually reduced their holdings.
 
Coming back to stock markets, Dish TV rose 14.21% to close at Rs96.85 on the BSE. The stock hit it 52-week high after it posted superb March 2015 quarter results. It was the top gainer in ‘A’ group on the BSE. It posted a net profit of Rs35.01 crore for the March 2015 quarter as compared to net loss of Rs149.05 crore for March 2014 quarter. Its revenues increased from Rs636.91 crore to Rs754.72 crore for the relevant period.
 
PMC Fincorp fell 8.13% to close at Rs11.30 on the BSE. It was the top loser in ‘A’ group on the BSE. It hit its new 52-week low today.
 
BHEL rose 2.88% to close at Rs241 on the BSE, in spite of posting a weak March 2015 quarter. It was the top gainer in the Sensex 30 pack while Vedanta today again was the top loser in the pack. It fell 2.33% to close at Rs195.35. 
 
US stock markets were closed Monday for the Memorial Day Holiday. 
 
Federal Reserve Vice Chairman Stanley Fischer said yesterday that the central bank expects to follow a gradual and relatively slow trajectory of short-term interest-rate increases over the next three to four years to bring borrowing costs back to normal levels.
 
Most of the Asian indices closed in the green. Shanghai Composite (2.02%) was the top gainer while SET Composite index (0.67%) was the top loser.
 
There were news that China plans to launch in July a mutual-fund recognition program between Hong Kong and mainland China, which will allow cross-border sales of funds between the two markets.
 
European indices were trading in the red. US Futures were trading marginally lower.
In Europe, a Greek government spokesperson reportedly said that Greece intends to keep repaying its debt. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the IMF between 5 June and 19 June 2015.
 

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Nifty, Bank Nifty, Sensex turning weak – Monday closing report

Nifty will turn weaker if it closes below 8,320

 

We had mentioned last week that the uptrend might continue as long as NSE’s CNX Nifty stays above 8,400 on a weekly basis. The 50-stock benchmark opened Monday lower and immediately hit the day’s high. This was followed by the index moving in a range upto 12.40pm after which it started moving further lower. An effort to revive after each dip pulled the stock further lower. By the end of the session, Nifty hit a four-day (including today) low and closed near to it.
 
The S&P BSE Sensex opened at 27,893 while Nifty opened at 8,438. After hitting a high at 27,903 and 8,442, both the indices moved lower and hit a low of 27,614 and 8,364, respectively. Sensex closed at 27,644 (down 314 points or 1.12%) while Nifty closed at 8,370 (down 89 points or 1.05%). Bank Nifty, which is more volatile index, fell a bit more. Bank Nifty opened at 18,405 and after hitting a high at 18,476 the index moved lower the level of 18,303 and closed at 18,325 (down 108 pints or 0.59%). NSE recorded a volume of 63.30 crore shares. India VIX fell 0.09% to close at 16.9325.
 
Finance Minister Arun Jaitley Monday asked taxmen to squeeze the parallel economy in a fair manner, without being harsh, and assured that the honest taxpayers have nothing to fear about the new black money law. The government, the minister said, has taken a host of measures to curb the menace of black money. These include passage of the black money law by Parliament and introduction of Benami Transactions (Prohibition) bill to deal with unaccounted domestic wealth.
 
State-owned Indian Oil Corp will invest Rs1,000 crore for raising its stake in Chennai Petroleum Corp Ltd, which will use the money for expanding operations.
 
India Inc has raised Rs11,500 crore through rights issue offering since the beginning of 2015, making it the highest fund mobilisation through the route in seven years. As many as six companies raised about Rs11,500 crore this year so far as against Rs5,224 crore in 2014.
 
Coming back to stock markets, Kailash Auto Finance (9.96%) was the top gainer in ‘A’ group on the BSE. Info Edge (5.22%) was the top loser.
 
ONGC (2.12%) was the top gainer in the Sensex 30 pack while Vedanta (3.59%) was the top loser in the pack.
 
On Friday, US indices closed in the red. The US Labor Department said on Friday that US' consumer price index (CPI) gained 0.1% in April 2015 after increasing 0.2% in March.
Federal Reserve Chairperson Janet Yellen Friday said the central bank is on track to raise interest rates this year but will likely proceed cautiously because the job market hasn't fully healed, inflation is low and growth has again disappointed.
 
The US stock market remains closed Monday for the Memorial Day Holiday.
 
Except for Jakarta Composite (0.50%), SET Composite index of Thailand (1.03%) and KLSE Composite (1.13%) all the other Asian indices which were trading today closed in the green. Shanghai Composite (3.35%) was the top gainer.
 
China's Ministry of Finance Monday announced that it would cut import duties on cosmetics, shoes and clothes by 50% on average, as part of a plan to boost domestic consumption and sustain economic growth.
 
European indices had mixed closing on Friday. Over the weekend, Greece raised doubts that it would have the money it is due to repay to the International Monetary Fund (IMF) next month. This news comes despite months of negotiations between Greece's leftist-led government and creditors—the European Union and the IMF. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the IMF between June 5-19.
 

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Fortnightly Market View: Trudging Along
In no man’s land
 
Two weeks ago, the Nifty closed at around 8,200. During the past fortnight, it has risen by 250 points. I expect the market to trudge a bit higher, subject to small dips. If the uptrend continues, the Nifty may head towards 8,550. However, such advance needs some fuel. The main fuel for the market rally has so far been the money from foreign institutional...
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