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23 December
2016
I had
mentioned in last week’s closing report that Nifty, Sensex were in a slow
decline. The major indices of the Indian stock markets have continued to slip
with each trading day this week and the bulls are not able to turn the tide.
Daily trading volumes have also been on the lower side. The trends of the major
indices in the course of the week’s trading are given in the table below:
 |
Weekly Closing
Report (The Total
Investment & Insurance Solutions)
Sensex,
Nifty traded in the red throughout the day on Monday. Nifty sectoral indices
ended in the red, while Nifty IT was in green and up marginally. Also, the
Sensex indices ended on a negative note after being marginally down. S&P
BSE Sensex ended the day at 26,375, down 115 points, while the broader Nifty50
settled at 8,104, down 35 points. Broader market indices performed in line with
the headline indices, with BSE Midcap and Smallcap down 0.51% and 0.46%
respectively. The Total Investment
& Insurance Solutions
Weak
global indices, coupled with foreign fund outflows and rupee depreciation were
a drag on the Indian equity markets on Tuesday. The key indices closed on a
flat note -- marginally in the red, as selling pressure was witnessed in
banking, healthcare and automobile stocks. The BSE market breadth was skewed in
favour of the bears -- with 1,777 declines and 832 advances. On the NSE there
were 427 advances, 1,180 declines and 74 unchanged.
Finance
Minister Arun Jaitley on Tuesday indicated that no populist measures will come
through for the railways when its budget will be merged with the general budget
from the next fiscal. "Around the world that organisation is successful
which follows a financial model wherein consumers pay for the services they
use," Jaitley said here at the national conference on Accounting Reforms
in Indian Railways organised by Confederation of Indian Industry (CII). He said
populism required that consumers do not need to pay for the services they use
but these were not the principles "on which the largest operator of transport
can work". "We aim for a creation of Railways as a service
organisation which is commercially able to sustain itself and also provide
world class quality and infrastructure." These policy measures from the
government could lead to higher inflation and higher interest rates, thus
weakening the indices in the stock markets. The Total Investment & Insurance Solutions
Pharma
major Cipla on Monday said that it plans to raise Rs4,000 crore through the
issue of various securities, subject to regulatory approvals. The decision to
raise the targeted fund was taken by its Board of Directors, the pharma major
said in a regulatory filing to the BSE. The company disclosed that it plans to
raise "funds up to Rs2,000 crores by issue of equity shares or American
depository receipts or global depository receipts or foreign currency
convertible bonds or other securities/ financial instruments, whether
denominated in Indian rupee and/or foreign currency(ies), though a public issue
or a private placement in accordance with the provisions of the applicable
law". It plans to raise another Rs2,000 crore via the issue of
non-convertible debentures (NCDs) or bonds. Cipla shares closed at Rs562.00,
down 1.13% on the BSE on Tuesday. The
Total Investment & Insurance Solutions
Profit
booking, coupled with a weak rupee and outflow of foreign funds, pulled the
Indian equity markets lower on Wednesday. The key indices provisionally closed
flat -- marginally in the red -- as heavy selling pressure was witnessed in IT,
FMCG and capital goods stocks.
Sun
Pharmaceutical Industries dipped 2% to Rs615 on the BSE, its lowest level since
November 9, 2016. Reliance Communications (RCOM) ended nearly 7% higher on the
BSE after the company announced the signing of binding agreements with
Brookfield Infrastructure in relation to the acquisition of RCOM’s nationwide
tower assets by affiliates of Brookfield Infrastructure Partners LP. JBF
Industries moved higher by 6% on the BSE after a nearly 4% of total equity of
the company changed hands via block deal in noon deal trade.
Broadly,
negative global indices, coupled with foreign fund outflows and rupee
depreciation, dragged the Indian equity markets lower on Thursday. The key
indices closed in the red, as selling pressure was witnessed in metal, banking
and capital goods stocks. The wider 51-scrip Nifty of the National Stock
Exchange (NSE) declined by 82.20 points or 1.02% to 7,979.10 points. Headline
Sensex index on Thursday tanked 263 points, extending its falling streak to the
seventh consecutive session, and ended below the crucial psychological level of
26,000.
The
Indian Rupee was trading lower by three paise at 67.93 per dollar. Gold was
trading at Rs26, 918 per 10 grams and silver was trading at Rs38,983 per kg.
On
Friday, the major indices were range-bound and closed on a flat-to-small-gain
note over Thursday’s close. Gains were less than 0.25% over Thursday’s close on
lack of domestic trigger and broadly negative global indices. NSE trading
volumes were on the lower side at 72.41 crore on Friday, and it is clear that
investors are staying away from the market, especially since foreign
institutional investors are now off for their yearend vacation. On the NSE,
there were 683 advances, 789 declines and 71 unchanged. On the BSE, there were
1,257 advances, 1,305 declines and 170 unchanged. We expect the market to
remain subdued though having fallen quite a bit, the main indices may try to
stage a rebound. The Total Investment
& Insurance Solutions
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