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17
February 2017
I had
mentioned in last week’s closing report that Nifty, Sensex lacked momentum. The
major indices of the Indian stock markets were range-bound during the week and
closed with small gains on Friday. 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)
Indian
equity benchmarks closed flat with very little gains on Monday as the market
waited for the January retail inflation data to be announced after-hours.
Industrial production declined by 0.4% in December 2016, against the strong
growth of 5.7% in November 2016. Bank of Baroda, one of the largest public
lenders, fell more than 10% because the market was disappointed with the
December quarter results. SBI also fell 1.76%, whereas most of the private bank
stocks rose. Coal India fell 1.23% after consolidated net profit fell 20.25%,
to Rs2,884.47 crore, on 2.88% rise in total income, to Rs21531.28 crore, for
the December 2016 quarter, the results of which were announced on Saturday, 11
February 2017.
Infosys
rose by 1.6% as co-founder NRM Murthy commented that Chairman R Seshasayee
enjoys the “highest integrity” and called off his fight with the board, saying
that the company will deal with the corporate governance issues. Piramal
enterprises rose by 3.37% after reporting growth in total income of 31.11%, to
Rs2,313.83 crore, and net profit growth of 31.66%, to Rs404.08 crore. Suzlon
rose by 11% after the company reported growth in total income of 75.7%, to
Rs3307.48 crore, and net profit of Rs274.34 crore for December 2016 quarter, as
against net loss of Rs121.84 crore in December 2015 quarter. On Monday, the
Central Statistics Office (CSO) reported that India's annual retail inflation
eased to 3.17% in January, from 3.41% in December and 5.69% reported during the
corresponding period last year. The increase in inflation could lead to a
hardening of interest rates and hence a slowdown in the bullish approach in the
stock markets. The Total Investment & Insurance
Solutions
Indian
equities markets on Tuesday closed on a flat note as disappointing
macro-economic data, coupled with broadly negative Asian indices and profit
booking, subdued investors' sentiments. The BSE market breadth was tilted in
favour of the bears -- with 1,790 declines and 1,039 advances. On the NSE,
there were 479 advances, 991 declines and 61 unchanged. India's annual rate of
inflation, based on wholesale prices, rose to 5.25% during last month, from
3.39% reported for December 2016, official data showed on Tuesday, mainly due
to a rise in fuel costs. According to the Wholesale Price Index (WPI) data
released by the Commerce and Industry Ministry, the annual inflation rate was
(-)1.07% in January, 2016. The wholesale inflation for food articles declined
by (-)0.56% during the month under review, from (-)0.70% in December and 6.46%
recorded for January, 2016. However, expenses on primary articles, which
constitute 20.12% of the WPI's total weight, rose by 1.27% during January.
The
increased chances of an upcoming US rate hike, along with disappointing
quarterly results, dragged the Indian equities markets lower on Wednesday. The
key domestic indices closed more than half a per cent down, as selling pressure
was witnessed in automobile, healthcare and consumer durables' stocks. The BSE
market breadth was skewed in favour of the bears -- with 2,143 declines and 698
advances. On the NSE, there were 298 advances, 1,361 declines and 73 unchanged. The Total Investment & Insurance Solutions
State-run
Hindustan Aeronautics Ltd (HAL) is set to go public soon to sell 10% of equity
shares of Rs10 face value, a top official said on Sunday. "We will soon
make Initial Public Offering (IPO) to sell 36.1 million shares, which are
equivalent to 10% of the holding by the government. The draft prospectus is
ready for filing with the market regulator (Sebi) and have appointed the
book-running lead managers," HAL Chairman T Suvarna Raju told
reporters.
The
government, which owns the defence behemoth, has diluted 25% (120.5 million
shares) of its full holding through buy-back and collected Rs5,265 crore,
including Rs981 as tax from the company, during the last fiscal (2015-16).
Post-IPO, the government holding in the company will be 65%. "The
valuation process is underway to fix the issue price for the IPO. We hope to do
so by the end of this fiscal (2016-17) or during the ensuing fiscal
(2017-18)," asserted Raju. The cash-rich firm paid Rs750 crore as dividend
to the government for fiscal 2015-16. These shares are also likely to be attractive
to foreign institutional investors post-listing on the stock exchanges. The Total Investment & Insurance Solutions
Broadly,
positive global indices and value-buying lifted the Indian equities markets on
Thursday. The key domestic indices closed with gains of more than half a per
cent each, as buying was witnessed in healthcare, automobile, and metal stocks.
The BSE market breadth was in favour of the bulls -- with 1,807 advances and
992 declines. On the NSE, there were 1,154 advances, 480 declines and 86
unchanged. The Total Investment & Insurance
Solutions
On
Friday, the major indices of the Indian stock markets were range-bound and
closed with small gains of 0.50%-0.59%. However, some gains were capped on the
back of negative global cues and profit booking. The BSE market breadth was
marginally in favour of the bulls -- with 1,418 advances and 1,392 declines. On
the NSE, on Friday, there were 866 advances, 760 declines and 83 unchanged.The Total Investment & Insurance Solutions
