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24
March 2017
I had
mentioned in last week’s closing report that Nifty, Sensex might pause for
breath. The major indices of the Indian stock markets closed with losses over
the first three days of the week and made a small rally on Thursday. On
Friday, the market closed with small gains over Thursday’s close. Overall, for
the whole week, the major indices closed with marginal losses. The trends of
the major indices in the course of the week’s trading are given in the table
below:
 |
Weekly Indices (The Total
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Indian
equity markets ended lower on Monday after a three day rally as investors chose
to book profits caused by the rally in the previous week. The key indices ended
in the red as the software services exporters worried over strong rupee and a
slowdown in business. Shares of IT companies plunged on reports that Cognizant
may reduce at least 10,000 jobs, representing 5% of its total workforce, as the
company looks to shift its focus from traditional IT services to digital. The
rupee strengthened slightly to 65.4124/4150 per dollar, close to the near
17-month high of 65.2250 hit last week. The
Total Investment & Insurance Solutions
On
Monday, the shares of Idea Cellular fell by 11% on the BSE after the
announcement of the board approving the merger with Vodafone’s Indian
operations, reversing the earlier gains of 14.25%. This decline was observed
because the investors thought that the deal values the stock of the company
were much lower than the current market price; the promoters however rejected
the valuation rumours. Voadafone India would own 45.1% of the combined entity,
the promoters of Idea would own 26% and the rest would be held by the public.
Indian
equity markets slipped for the second consecutive trade session on Tuesday as selling
pressure was witnessed in healthcare, banking and automobile stocks. The key
indices traded in the red during the mid-afternoon trade session as investors
booked profits. By the end of the day’s trading, bulls returned and the major
indices ended flat. A strong rupee and broadly positive global cues aided the
key indices to pare some losses and close the day on a flat note. On the NSE,
there were 498 advances, 960 declines and 56 unchanged. On the BSE, there were
1,088 advances, 1,694 declines and 192 unchanged.
Titan
Company Limited on Tuesday announced that it will integrate IBM Watson Customer
Engagement solutions to serve as the backbone of its online platform, enabling
the company to tailor online campaigns and increase its customer base. Titan
aims to use IBM's platforms to drive visitors to its brand websites as well as
footfall into its 1,500 retail stores and 10,000 multi-brand outlets located
across India. Titan shares closed at Rs463.70, down 0.40% on the BSE.
State-run
Bharat Sanchar Nigam Limited (BSNL) on Tuesday launched a plan that will
provide 2GB data per day for Rs339 per month. "To compete with Jio and
other private players, we have introduced the cheapest plan with a rental value
of Rs 339 per month. Under this plan, the consumer will get 2GB per day,"
said Sanjiv Tyagi, General Manager, BSNL. "In a month, the consumer will
get 30 GB data and 25 minutes free call per day. After consumption of 25
minutes a levy of 25 paisa per minute will be imposed," he added. The plan
will be effective from April 1, 2017. The closely related state-run Mahanagar
Telephone Nigam Limited’s shares closed at Rs24.15, down 3.01% on the BSE. The Total Investment & Insurance Solutions
Indian
equity markets slipped during the mid-afternoon trade session on Wednesday as
negative global cues and selling pressure in automobile, consumer durables and
banking stocks subdued investors' sentiments. Growing concerns over US
President Donald Trump's ability to implement his economic policies spooked the
global markets. The US stocks slipped over 1.14-1.83% on Tuesday, following
which almost all major Asian indices traded deeply in the red early on
Wednesday. On the NSE, there were 400 advances, 1,070 declines and 56
unchanged. On the BSE, there were 970 advances, 1,837 declines and 195
unchanged.
On
Wednesday, analysts reported that Coal India Ltd (CIL) was likely to end the
current fiscal with a shortfall against its annual production target for
2016-17. They, however, predicted that the production and sales were expected
to achieve "marginal growth" over the last fiscal. During 2016-17,
the miner had set a target of producing 598.61 million tonnes (mt) of coal with
an 11.11% growth over the 538.75 mt produced in 2015-16. Its sales were at
534.50 mt in the last fiscal. "Coal India is expected to end the year with
an around 550 million tonnes of production, thereby missing the annual target
by 40-50 million tonnes. The miner needs to produce about 90 million tonnes in
March to touch even 570-578 million tonnes as envisaged by the Coal Ministry.
This is quiet unlikely," said market analysts. So far, the average monthly
production in the current fiscal was around 45 million tonnes, he said.
"Production has been impacted due to lower dispatch. Higher production
without growing dispatch will add more to inventories and off-take growth till
February was around 1.6% and I don't think it would change significantly in
March," he said. CIL shares closed at Rs292.15, up 0.14% on the NSE.
Positive
global cues, coupled with a marginally strong rupee and buying in automobile,
oil and gas, and capital goods stocks lifted the Indian equity markets on
Thursday. The key indices traded in the green during the mid-afternoon trade
session on the back of short covering -- breaking the streak of three
consecutive sessions of losses. On the NSE, there were 1,059 advances, 563
declines and 304 unchanged. On the BSE, there were 1,687 advances, 1,112
declines and 204 unchanged. The Total
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The
CNX Nifty, which opened on a firm note on Thursday, tracking positive global
cues, traded with firm sentiments due to short covering. Bearish USD/INR
futures prices also supported the recovery of the Indian equity markets.
IT (information technology), banking, pharma, auto, oil-gas and textile
stocks traded in the green due to short covering, while media-entertainment and
telecom sector stocks also traded with firm sentiments due to continuous buying
support, according to market analysts. The
Total Investment & Insurance Solutions
On
Friday, the key Indian equity market indices opened in the green following
mixed global cues. Through the day, the major indices were range-bound and
closed with small gains over Thursday’s close. Trading was with gains for
the second consecutive session on Friday on the back of broadly positive Asian
indices, foreign funds' inflows and buying witnessed in banking stocks. After
more than seven decades in existence and often referred to as Kerala's own
bank, the State Bank of Travancore (SBT) would on March 31 go into oblivion.
From the new fiscal, the bank would be merged with the State Bank of India
(SBI). In all, 400 branches of SBT would be physically closed down. SBI shares
closed at Rs276.05, up 2.81% on the BSE. On the NSE, there were 683 advances,
690 declines and 74 unchanged. On the BSE, there were 1,345 advances, 1,474
declines and 216 unchanged.The Total
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