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27
February 2017
I had
mentioned in Friday’s closing report that Nifty, Sensex were trending higher.
The major indices of the Indian stock markets were range-bound on Monday and
closed with small losses over Friday’s close. The trends of the major indices
in the course of Monday’s trading are given in the table below: The Total Investment & Insurance
Solutions
 |
| Major Indices (The Total Investment & Insurance Solutions) |
India
Vix closed at 13.68, up 2.05%. NSE turnover was at 118.20 crore.
Indian
equities markets traded on a flat note during the mid-afternoon trade session
on Monday as negative global cues and selling pressure was witnessed in
banking, automobile and capital goods stocks amidst subdued investors'
sentiments. The BSE market breadth was tilted in favour of the bears -- with
1,326 declines and 1,008 advances. Banking, pharma, auto, oil-gas, textile,
media-entertainment and FMCG stocks traded with sideways sentiments due to
profit booking. Cement, power and telecom sector stocks traded with bearish
sentiments due to selling pressure at higher levels. On the NSE, there were 707
advances, 949 declines and 268 unchanged.
Upcoming
macro-economic data points, along with global trends, are expected to determine
the trajectory of the Indian equities markets. The first half of the upcoming
week will be heavily influenced by domestic macro-economic data points. The
important quarterly GDP (Gross Domestic Product), monthly auto sales and ECI
(eight core industries) figures will be released early next week, pointed out
market analysts. India's Central Statistics Office (CSO) will release the
macro-economic data points of the second advance estimates of national income,
2016-17, along with the quarterly estimates of GDP for the third quarter of
2016-17 on Tuesday. The Ministry of Commerce and Industry will release the
Index of ECI figures for January, 2017 on February 28, which will be followed
by the release of monthly automobile sales figures, petrol price revision and
the PMI (Purchasing Managers' Index) data. In the latter part of the week,
investors will look forward to the US non-farm payroll data and a couple of US
Fed speeches to gauge the possibility of an upcoming US rate hike. The US
Bureau of Labour Statistics will report the latest US macro-statistic on
non-farm payrolls which are key data to gauge the likelihood of next US rate
hike. A hike in the US interest rates can potentially drive away Foreign
Portfolio Investors (FPIs) from emerging markets such as India.
Despite
the government’s efforts to attract investment under its Make in India
campaign, sales of manufactured goods fell 3.7% during 2015-16 -- the first
decline in seven years -- sparking fears of layoffs and debt default in the
months to come. Spurred by a global slowdown and lack of demand, sales of
manufactured goods were falling even before demonetisation, affecting sectors
ranging from textiles to leather to steel. As a result, in the six months to
September 2016, engineering major Larsen & Toubro laid off some 14,000
employees. Companies such as Microsoft, IBM and Nokia were also reported to
have cut back on their workforce in 2016-albeit on a smaller scale-blaming
sluggish demand for downsizing. In November 2014, just weeks after Prime
Minister Narendra Modi launched his Make-in-India campaign, Nokia shut its
factory in Chennai, rendering 6,600 full-time workers jobless. Economists say
the government must step in to support the manufacturing sector, which
constitutes 15%-16% of the gross domestic product (GDP) and supports 12% of the
workforce. Sales are down as investment falls, costs and import duties rise and
demand contracts. A range of factors including falling investment, increased
input costs and higher import duties have caused demand for manufactured goods
to fall, a trend that was visible before demonetisation and has strengthened
since. These factors are likely to make the stock markets more bearish in
India. The Total Investment & Insurance
Solutions
The
top gainers and top losers of the major indices are given in the table below:
 |
Top Gainer (The Total
Investment & Insurance Solutions)
The
closing values of the major Asian indices are given in the table below:The Total Investment & Insurance Solutions
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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