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30 September 2016
I had
mentioned in last week’s closing report that Nifty, Sensex were trendless. The
major indices of the Indian stock markets suffered a sharp correction during
the week due to deterioration in Indo-Pak relations. The trends of the major
indices in the course of the week’s trading are given in the table below: The Total Investment & Insurance
Solutions
 |
| Weekly market (The Total Investment & Insurance Solutions) |
Indian
equity markets plunged on the back of negative global cues and caution ahead of
F&O (futures and options) expiry during the mid-afternoon trade session on
Monday. The key indices traded in the red with losses of more than 1% each, as
selling pressure was witnessed in stocks of banking, automobile and capital
goods. The BSE market breadth was tilted in favour of the bears -- with 1,644
declines and 1,052 advances. On the NSE, there were 542 advances, 1,070
declines and 259 unchanged. Volatility in global crude oil prices and
negative Asian markets dragged the Indian equity markets lower at the start of
the day's trade, pointed out market analysts. Lower European market accelerated
the falls in the key domestic indices. Unwinding of positions ahead of F&O
expiry also depressed the equity markets. The CNX Nifty traded lower tracking negative
global cues. IT and banking stocks traded down on profit-booking. Auto and
oil-gas stocks traded with sideways sentiments. The Total Investment & Insurance Solutions
India's
foreign exchange reserves went down $369.60 billion as on September 16, the
Reserve Bank of India (RBI) announced on Monday. According to data released by
the RBI, the reserves stood at $369.60 billion as on September 16, as against
$371.27 billion as on September 9. On September 16, the foreign currency assets
stood at $344.07 billion, gold at $21.64 billion, special drawing rights at
$1.49 billion and the reserve position in the International Monetary Fund (IMF)
at $2.39 billion. The Indian stock markets did well in attracting investments
from foreign institutional investors, when the foreign exchange reserves moved down.
On
Tuesday, the key indices closed in the red as selling pressure was witnessed in
capital goods, banking and automobile stocks. The BSE market breadth was tilted
in favour of the bears -- with 1,430 declines and 1,254 advances. On the NSE
there were 614 advances, 828 declines and 61 unchanged. IT (information
technology) stocks traded with mixed sentiments, while banking stocks traded
down due to profit booking. Textile and FMCG stocks traded with mixed
sentiments on profit booking, according to market analysts.
State-run
Coal India Ltd's share buy-back offer will open from October 3 to October 18, a
regulatory filing said on Tuesday. Coal India board had approved the buy-back
of over 10.89 crore shares at a price of Rs335 per share for an aggregate
consideration not exceeding Rs3,650 crore. SBI Capital Markets Ltd on Tuesday
informed about the letter of offer regarding buy-back offer to the equity
shareholders of coal miner. "The buy-back offer size represents
approximately 24.95 per cent of the aggregate of the fully paid-up share
capital and free reserves, as per the audited accounts of the Company for the
financial year ended 31 March 2016 and is within the statutory limits of 25% of
the aggregate of the fully paid up share capital and free reserves as per the
audited accounts of the Company for the financial year ended 31 March
2016," the filing said. Coal India shares closed at Rs332.00, down 0.20%
on the BSE.
Value
buying, along with short covering and a firm rupee, lifted the Indian equity
markets during the mid-afternoon trade session on Wednesday. Buying was
witnessed in automobile, banking and capital goods stocks. The BSE market
breadth was tilted in favour of the bulls -- with 1,644 advances and 1,003
declines. On the NSE, there were 932 advances, 482 declines and 70 unchanged. The Total Investment & Insurance Solutions
The
banking sector, especially the public sector banks, led the recovery. Positive
European markets and a firm rupee have also supported the upward movement. The
CNX Nifty traded with firm sentiments due to short covering. IT (information
technology) stocks faced profit booking at higher levels. Auto, oil-gas and
textile stocks also traded firm. Aviation and FMCG stocks traded with mixed
sentiments due to profit booking. Power and cement stocks also traded firm on
buying support. The Total Investment & Insurance
Solutions
Indian
equities tumbled sharply on Thursday after the army said it conducted surgical
strikes on terror camps along the Line of Control (LoC) in Jammu and Kashmir,
inflicting "significant casualties". The barometer 30-scrip sensitive
index (Sensex) of the BSE, which was ruling strong in the morning after the
unexpected production cuts agreed to by oil producing countries, took a fall of
more than 500 points after the relevant briefing by the Indian Army. However,
value buying arrested the steep falls and led to a bounce back. Nonetheless,
speculative selling, profit booking and derivatives expiry dynamics again
dragged the key indices lower during the late-afternoon trade session. The BSE
market breadth fell prey to the bears -- with 2,297 declines and 442 advances.
On the NSE, there were 77 advances, 1,415 declines and 31 unchanged.
The
CNX Nifty and Bank Nifty traded down on selling pressure. IT (information
technology) stocks witnessed some recovery at lower levels tracking firm USD/INR
futures prices. Banking, pharma and auto stocks traded down on selling
pressure. Aviation stocks traded down tracking higher crude oil prices.
Oil-gas, textile and FMCG stocks also traded down on over all selling pressure
in the market. The Total Investment & Insurance
Solutions
The
Indian currency, which opened at 66.44 to a US dollar, had already depreciated
in the initial hours of the day's trade in line with the weakness in Asian
currencies. The sharp fall occurred around 1.00 p.m. when the rupee depreciated
to 66.95 to a US dollar. This level was last seen on September 22. However, the
Indian currency bounced back marginally to 66.85 to a greenback before
speculative selling dragged it lower to 66.90 at 4.10 p.m. on Thursday.
Value
buying and short covering, along with a recovering rupee, buoyed the Indian
equity markets on Friday. The key indices traded in the green during the
late-afternoon session, as buying was witnessed in automobile, oil and gas, and
banking stocks. On Friday, the major indices closed with small gains over Thursday’s
close.The Total Investment & Insurance
Solutions
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