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27
October 2017
I had
mentioned last week that Nifty, Sensex were to trade in a range. The major
indices of the Indian stock markets rallied over the week and closed with
significant gains on Friday over last week’s close. The trends of the major
indices in the course of the week’s trading are given in the table below:
 |
Weekly Indices (The Total
Investment & Insurance Solutions)
Positive
global cues along with buying in oil and gas stocks lifted the Indian equity
markets on Monday. According to market observers, buying was witnessed in oil
and gas, IT (information technology) and banking stocks. On the NSE, there were
823 advances, 922 declines and 70 unchanged.
On
Monday, Anglo-Dutch consumer goods multinational Unilever said emerging markets
sales drove the company's growth in the third quarter of 2017, while it sees
signs of improvement in India with higher demand-led growth helped by price
cuts resulting from GST (Goods and Services Tax). "While conditions in our
developed markets remain challenging, we are starting to see signs of
improvement in some of our biggest emerging markets including India and
China," Unilever Chief Executive Paul Polman said in a statement in London
after the company posted a 2.6% underlying growth in sales during third quarter
ended September. "Emerging markets underlying sales growth was 6.3% in the
third quarter, with volume up 1.8%," Unilever said. During the previous
quarter ended June, its Indian arm, Hindustan Unilever, posted a 6% sales
increase with flat volume growth, mainly due to the destocking provoked prior to
the implementation of the pan-India GST from July. Unilever said volume growth
improved in India after implementation of the new indirect tax regime.
Global
cues, along with buying in banking stocks and expectations of positive
quarterly results, buoyed the key Indian equity indices on Tuesday. According
to market observers, buying was witnessed in banking, oil and gas and metal
stocks. On the NSE, there were 936 advances, 743 declines and 295 unchanged.
Hiring
activity in the banking and financial services sector witnessed a 21% growth
during September this year compared to the same period last year, a report by
job portal Naukri.com said on Tuesday. Even as the job market in the country
remains "volatile", Naukri Jobspeak Report, a monthly analysis of job
listings on the portal, shows the overall job market has seen 3% growth in
September, compared to the same period last year. "Job market continues to
be volatile. The Jobspeak index for September has shown a three per cent
year-on-year growth driven by growth in sectors like banking, financial
services, insurance, industrial products and auto and engineering," said
Chief Sales Officer of Naukri.com V Suresh in a statement. The
"uncertainty" in the job market is likely to continue for a few more
months, he added.
Hindustan
Zinc reported a rise of 34% in its net profit for the second quarter (Q2) of
2017-18. According to a BSE filing, its net profit during the quarter under
review increased to Rs2,545 crore from Rs1,902 crore reported for the
corresponding period of 2016-17. The company's board of directors declared an
interim dividend of 100% i.e. Rs2 per share on equity share of Rs2 each with a
record date fixed for the interim dividend of October 31, 2017. The company
added that as on September 30, 2017, its cash and cash equivalents was Rs19,979
crore invested in high quality debt instruments.
On
Tuesday, there were reports that India’s largest general insurance company New
India Assurance would hit the capital markets on November 1 to raise an estimated
Rs10,000 crore through an initial public offering, merchant bankers privy to
the development said. The company's share sale will close on November 3, it
said. The IPO comprises sale of 9.6 crore shares by the government, besides
fresh issue of 2.4 crore shares. Thus, a total of 12 crore shares of the
non-life insurer would be sold through the share sale offer, constituting
around 14.56% of the company's post issue share capital. New India Assurance is
expected to list on the stock exchanges on November 13.
Scrips
of public sector banks (PSBs) rose exponentially on Wednesday, a day after the
government announced a massive recapitalisation scheme. Almost all the major
PSBs (public sector banks) like State Bank of India, Punjab National Bank and
Bank of Baroda rose in the band of 20%-40%. Bank Nifty closed 3.36% higher and
the S & P BSE Bankex closed at 28,329.12, up 4.71%. On the NSE, there were
615 advances, 898 declines and 59 unchanged. ICICI Bank closed at Rs305.60, up
14.69% and HDFC Bank closed at Rs1,794.50, down 3.79% among the private banks.
Wednesday's
upmove was based on Tuesday evening's announcement on recapitalisation of
Public Sector Banks. Even the maximum (trade) volume during the day on the NSE
was concentrated towards the banking counters and especially the large PSBs.
Almost all PSBs' stocks like those of SBI, BoB and PNB rose dramatically to
touch their new 52-week highs. Many of them had hit 52-week lows just a few
days ago. The rise in PSB stocks not only lifted the sectoral index but also
the benchmark indices -- BSE Sensex and NSE Nifty -- to touch their all-time
highs.
Buying
in interest rate sensitive stocks, derivatives expiry and broadly positive
global cues buoyed the Indian equity markets on Thursday. According to market
observers, the off-take in interest rate sensitive stocks along with those of
metals, healthcare and oil and gas scrips kept the indices on the higher side.
On the NSE, there were 790 advances, 680 declines and 44 unchanged.
Fast
moving consumer goods (FMCG) company Emami Ltd reported a 49.69% rise in its
consolidated net profit to Rs98.60 crore for the quarter ended September 30,
2017 as compared to Rs65.87 crore in the year ago period. During the period
under review, its revenue from operations after incorporating changes in
accounting treatment of indirect tax was at Rs712.48 crore as compared to
Rs625.34 crore in the year-ago period. "After a challenging Q1 faced with
GST apprehensions resulting in substantial wholesale destocking, in the second
quarter, we have recovered significantly. Both topline and bottomline have
registered handsome growth at around 14% and 49% respectively," said
company's Director Mohan Goenka. Post GST, the wholesale channels are yet to
recover completely from the impact, which the firm expects to improve in the
second half of the year, he said, adding that international business is also
back on track riding on the base effect of last year's performance.
Battery
major Exide Industries reported a 25.46% fall in its net profit to Rs135.52
crore for the quarter ended September 30, 2017 as compared to Rs181.81 crore
for the year-ago period. Its revenue from operation in the quarter under review
stood at Rs2,371.32 crore, up by 9% from Rs2,170.91 crore, according to a
regulatory filing. According to the company, the fall in net profit was on the
back of Rs41.83 crore expenses incurred due to settlement of the usage of
"Exide" mark in India. “Exceptional item of Rs41.83 crore charged for
the quarter represents expenses incurred towards settlement of dispute with
Exide Technologies, USA in relation to the usage of the name or mark
Exide," the company said in a statement.
On
Friday, the major indices of the Indian stock markets were range-bound and
ended flat compared to Thursday’s close. The key indices of the Indian equities
market traded on a high note during the mid-afternoon session on Friday. The
two key indices -- the S&P BSE Sensex and NSE Nifty50 recorded new
intra-day highs. According to market observers, expectations of healthy quarterly
results and buying support for the auto and banking stocks lifted the key
indices. However, the gains were not sustained and the major indices ended
flat.The Total Investment & Insurance
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