Contact Your Financial Adviser Money Making MC
7
October 2016
I had
mentioned in last week’s closing report that Nifty, Sensex might rally if
weekly lows hold. The major indices of the Indian stock markets rallied
strongly only on Monday. On the remaining days of the week, the indices failed
to continue on the upward trajectory. It appeared that the momentum of the
initial rally had been lost through the week. Trading volumes were high through
the week. 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
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Positive global cues lifted the
Indian equity markets on Monday. Buying was witnessed in automobile, capital
goods and banking stocks. The BSE market breadth was skewed in favour of the
bulls - with 2,228 advances and 660 declines. On the NSE, there were 1,316
advances, 155 declines and 42 unchanged. The Total Investment & Insurance
Solutions
Two and three wheeler major Bajaj
Auto on Monday reported a decline of 2% in its total sales for September.
According to the company, its total sales during the month under review stood
at 376,765 units from an off-take of 384,400 units during the corresponding
month of 2015. However, total domestic sales in September were up 21% to 255,592
units from 210,599 units sold during the like month of last year. The overall
exports during the last month declined by 30% to 121,173 units from 173,801
units shipped out during the corresponding month of 2015. The company's total
motorcycle sales during the month under review increased by one per cent to
331,976 units from 330,228 units sold in the like month of last year. In
contrast, the overall commercial vehicle sales declined by 17% to 44,789 units
from 54,172 units sold during September 2015. Bajaj Auto shares closed at
Rs2,875.30, up 1.52% on the BSE.
Reduction in a key lending rate,
coupled with short covering and value buying, pushed up the Indian equity
markets on Tuesday. The key indices which opened on a higher note following
positive cues from Asian markets, held on to their gains after the Reserve Bank
of India (RBI) announced a 25 basis points cut in one of its key lending rates.
Buying was witnessed in interest-sensitive stocks in oil and gas, banking and
metals. The BSE market breadth was tilted in favour of the bulls -- with 1,689
advances and 1,156 declines. On the NSE, there were 826 advances, 615 declines
and 62 unchanged.
The Total Investment & Insurance Solutions
The Monetary Policy Committee
of the Reserve Bank of India (RBI) cut a key lending rate by 25 basis points on
Tuesday at the conclusion of its first meeting over two days, bringing much
relief to commercial banks and India Inc. With the decision, the repurchase
rate, or the short-term lending rate charged by the central bank on borrowings
by commercial banks, stands lowered to 6.25%. The reverse repurchase rate also
automatically stands lowered to 5.75%. This was the first meeting of the
new policy panel, constituted by the government with the primary mandate to
ensure a retail inflation of 4%, plus or minus a band of two percentage points.
The panel said in a statement that the decision taken on Tuesday was consistent
with an accommodative stance, with the objective of achieving the inflation
target. All six members of the panel, chaired by RBI Governor Urjit Patel,
voted in favour of the monetary policy decisions -- the minutes of which will
be released on October 18. The markets responded to the decision with a spike
in key indices.
The Total Investment & Insurance Solutions
Negative global indices, coupled
with profit booking and lower than expected macro-data, dragged the Indian
equity markets during the mid-afternoon trade session on Wednesday. Selling
pressure was witnessed in banking, IT and oil and gas stocks. On the BSE, there
were 1,739 advances, 1,142 declines and 123 unchanged. On the NSE, there were
841 advances, 598 declines and 43 unchanged. Investors were seen reluctant to
chase prices after several days of rise, pointed out market analysts. Negative
European markets and disappointing Services PMI figure, too, dragged the key
indices lower.
The Total Investment & Insurance Solutions
Anil Ambani-led Reliance
Infrastructure on Wednesday said it is selling its entire transmission assets
to Adani Transmission. The deal size was not divulged, but banking sources
estimated it at over Rs 2,000 crore. Reliance Infrastructure owns the country's
first 100% private sector transmission project -- the Western Region System
Strengthening Scheme -- in Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
Reliance Infrastructure also owns 74 per cent in Parbati Koldam Transmission
located in Himachal Pradesh and Punjab in a joint venture with Power Grid Corp.
All three transmission projects have been completed and are revenue-generating,
the company said in a statement. "The entire sale proceeds from the
transaction will be utilized for debt reduction," the company said.
"The transaction is in line with the strategic plan of monetizing non-core
business and focus on growth areas like defence and engineering, procurement
and construction business." The Total Investment & Insurance
Solutions
Negative global markets, coupled
with lower crude oil prices and a weak rupee, dented the equity markets during
the mid-afternoon trade session on Thursday. Selling pressure was witnessed in
automobile, banking and IT (information technology) stocks. The BSE market
breadth was tilted in favour of the bulls -- with 1,366 advances and 1,506
declines. On the NSE, there were 658 advances, 960 declines and 255 unchanged. The Total Investment
& Insurance Solutions
Initially on Thursday, the benchmark
indices opened on a higher note in sync with their Asian peers. However, the
global markets, especially the European markets, remained subdued over
speculation on curtailment of stimulus measures by the European Central Bank
(ECB). Besides, caution prevailed ahead of key US macro-data on jobs to be
released on Friday. In addition, lower crude oil prices, profit booking and
consolidation added to the downward trajectory.
Three public sector banks -- Indian
Overseas Bank (IOB), Bank of India and Syndicate Bank -- on Wednesday announced
reduction in their marginal cost of funds-based lending rate (MCLR) for various
tenors. Indian Overseas Bank, in a statement, said its MCLR for one year was
reduced to 9.50% from 9.55% with effect from October 1. Similarly, Syndicate
Bank said it cut its MCLR for one year to 9.45% from 9.55% effective from
October 7. On its part, Bank of India said its one year MCLR was 9.35%
effective from October 7.
Negative global indices and profit
booking pulled the Indian equity markets lower on Friday. The key indices
traded on a flat-to-negative note during the session, as selling pressure was
witnessed in IT (information technology), oil and gas, and capital goods
stocks. The BSE market breadth was tilted in favour of the bears -- with 1,387
declines and 1,315 advances. On the NSE, there were 783 advances, 835 declines
and 257 unchanged. On Friday, the major indices of the Indian stock markets
closed around 0.15% lower than Thursday’s close. To add to the stock market
investors’ caution, U.S. employment growth was likely to have picked up in
September, putting pressure on the Federal Reserve to raise interest rates and
signalling that steam could be building in the economy ahead of America's
presidential election.The Total Investment & Insurance Solutions
