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9 December
2016
I had
mentioned in last week’s closing report that Nifty, Sensex were to be on an
uncertain course. The major indices of the Indian stock markets were initially
listless, as the market was in wait and watch mode for clarity in interest
rates from the Reserve Bank of India (RBI). On Thursday, the market was bullish
after the wait was over with the interest rates being unchanged and with
stimulus hopes from the European Central Bank (ECB). On Friday, the major
indices made a minor rally, but closed with marginal gains over Thursday’s
close. For the whole week, the gains in the major indices were around 2%. 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 Indices (The Total Investment & Insurance Solutions) |
A spurt of value buying, along with
resilience shown by European equities, after the failure of Italy’s referendum
on constitutional reforms, an appreciating rupee and expectations of domestic
monetary policy easing, lifted the Indian equity markets on Monday. The major
indices closed with small gains over Friday’s close. The euro sank to a
20-month low against the dollar amid worries over a possible push by Italy to
leave the common currency bloc and also concerns over the health of several
Italian banks. However, later in the day the currency clawed back almost all
the ground it had lost overnight. On Tuesday, the major indices closed with
marginal losses over Monday’s close.
Indian equity markets on Wednesday fell
sharply after the Reserve Bank of India decided to keep the key lending rates
unchanged in its bi-monthly monetary policy. The BSE market breadth was tilted
in favour of the bears -- with 1,522 declines and 1,086 advances. On the NSE,
there were 498 advances, 956 declines and 65 unchanged. In the initial stages
of trading, Indian equity markets surged on the back of increased hopes of an
easing of the monetary policy by the RBI, coupled with broadly positive global cues
and value buying. But the hopes were belied as the day’s trading progressed.
Sun Pharmaceuticals shares were punished
in the Indian stock markets, after the drug maker confirmed that its Halol
facility had undergone an inspection by US Food and Drug Administration (US
FDA) recently. “The inspection was completed on 01-December-2016. A Form-483
observation letter was issued by the US FDA post the inspection,” Sun Pharma
said on clarification of a news report on Wednesday. The Total Investment & Insurance Solutions
Indian equity markets surged on Thursday
as positive global cues, rupee appreciation and value buying buoyed investors'
sentiments. Besides, positive global indices, stimulus hopes from the European
Central Bank (ECB) in its upcoming monetary policy review, and commercial banks
reducing lending rates enhanced the risk-taking appetite. The BSE market
breadth was skewed in favour of the bulls - with 1,820 advances and 823
declines. The Total Investment &
Insurance Solutions
On Thursday, metal stocks rallied the
most, pushing S&P BSE Metal index to 10,937, up 2.93%, thanks to a rise in
shares of Vedanta, Tata Steel and NMDC. Auto stocks were the second best
performers. The S&P BSE Auto index rose 2.63% to 20,558. The BSE Midcap and
Smallcap indices gained 1.5% and 1.3%, respectively. However, the gap between
advances and declines narrowed as the day progressed. More than two shares
gained for every share falling against the ratio of 5:1 in early trade on the
BSE (Bombay Stock Exchange). The Total
Investment & Insurance Solutions
On Friday, Indian equities markets were
buoyed by short covering, coupled with higher crude oil prices and mixed global
indices, during the mid-afternoon trade session. However, gains were capped due
to caution ahead of major domestic macro-data announcements and profit booking.
The key Indian indices were trading on a flat-to-positive note, as buying was
witnessed in banking, IT (information technology) and consumer durables stocks.
On the NSE, there were 844 advances, 768 declines and 273 unchanged on Friday.The Total Investment & Insurance
Solutions
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