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24
February 2017
I had
mentioned in last week’s closing report that Nifty, Sensex were still range
bound. The major indices of the Indian stock markets showed momentum during the
week and closed with decent 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 markets started off the week on a positive note on Monday, with Nifty
closing above the five-month high pushed largely by TCS, Infosys and HDFC Bank.
After the consolidation in the morning, the markets gained strength in the
afternoon trade.
TCS
announced a buyback of up to 5.6 crore equity shares, about 2.85% of total paid
up capital, at Rs2,850 per share, totalling to Rs16,000 crore. The share
rallied 4% after the announcement. N Chandrasekaran takes over as the
Chairman of Tata Sons, with the hope of putting behind the hyped boardroom
battle that saw the ouster of Cyrus Mistry as Tata Sons Chairman. Maruti Suzuki
announced that its smart hybrid vehicles, Ciaz SHVS and Ertiga SHVS, have
crossed cumulative sales of 1 lakh units in February 2017. Telecom Stocks
rallied after a news report said that Tata Teleservices is in early talks to
join Reliance Communications-Aircel-MTS combine. The Total Investment & Insurance Solutions
Indian
equities markets traded on a flat-to-negative note during the mid-afternoon
trade session on Tuesday as selling pressure was witnessed in Teck (technology,
media and entertainment), telecom and IT (information technology) stocks.
Besides, broadly negative Asian indices and caution ahead of derivatives expiry
subdued investors' sentiments. The key indices, which opened on a flat note,
traded marginally in the red on the back of profit booking.
The
CNX Nifty traded sideways due to profit booking. IT sector stocks faced
resistance at higher levels, while banking, pharma, auto, oil-gas and FMCG
(fast moving consumer goods) stocks traded with mixed sentiments. However,
textile, aviation, media-entertainment and cement stocks traded with firm
sentiments due to buying support, although power sector stocks traded with
bearish sentiments. Reliance Industries (RIL) Chairman and Managing Director
Mukesh Ambani on Tuesday said Reliance Jio has crossed the 100 million customer
mark since its launch on September 5. The Total
Investment & Insurance Solutions
Positive
global cues, coupled with a strengthened rupee, pushed the Indian equities
markets higher on Wednesday. Besides, a sharp rise in Reliance Industries Ltd
(RIL) stocks, a day after Reliance Jio announced its tariff plans, buoyed
investors sentiments. However, caution prevailed ahead of the release of
minutes of the US Fed's Federal Open Market Committee (FOMC) and the Reserve
Bank of India's Monetary Policy Committee (MPC) as well as derivatives expiry.
In contrast, the BSE market breadth was tilted in favour of the bears -- 1,748
declines and 1,092 advances. The Total
Investment & Insurance Solutions
Automotive
and industrial lubricant manufacturer Castrol India on Tuesday reported a rise
of 10.7% in its net profit for the quarter ended December 31, 2016. The company
informed the BSE that its net profit during the quarter under review increased
to Rs155.8 crore from Rs140.8 crore. It reported a decline of 1.1% in its net
sales for the fourth quarter to Rs782.2 crore from Rs790.9 crore. For the
financial year ended December 31, 2016, the company reported that its profit
from operations was up by 12.2% at Rs959.9 crore, whilst net profit was higher
by 9.7% to Rs674.9 crore. The Total
Investment & Insurance Solutions
On
Thursday Indian equities markets closed on a flat-to-positive note, with the
telecom sector stocks rising following a major acquisition announcement by
telecom major Bharti Airtel of Telenor’s India operations. Despite a volatile trade
session on the back of derivatives expiry, the benchmark index Nifty touched
its 52-week high during the intra-day trade. The key indices pared most of
their initial gains to close marginally in the green, as healthy buying was
witnessed in IT, Teck (technology, media and entertainment) and consumer
durables stocks. The BSE market breadth was tilted in favour of the bulls --
1,315 advances and 1,283 declines. On the NSE, there were 660 advances, 978
declines and 70 unchanged.
Global
credit rating agency Moody's Investors Service on Thursday said continuing to
increase non-watch list Non-Performing Loans (NPLs) would put pressure on Axis
and ICICI banks' credit profiles. On the other hand, asset quality trends for
public sector banks were more benign, and the pace of deterioration was slowed
in the past two quarters from the levels seen in FY2016, Moody's said. The Total Investment & Insurance Solutions
International
Monetary Fund (IMF) said that India's overall outlook remains positive,
although growth will slow temporarily as a result of disruptions to consumption
and business activity from the recent withdrawal of high-denomination banknotes
from circulation. But the nation's expansion will pick up again as economic
reforms kick in, said the IMF in its latest assessment. IMF reduced is growth
forecasts to 6.6% for fiscal year 2016-17 and to 7.2% in 2017-18.
Tata
Motors rose 0.31% after the company said its board will meet on 2 March 2017 to
consider raising Rs 500 crore through private placement of non-convertible
debentures. The company said that it is desirous of offering the sixth series
of its rated, listed, unsecured, redeemable, non-convertible debentures (NCDs)
aggregating to Rs500 crore.
The
BSE market breadth was marginally in favour of the bears -- with 1,200 advances
and 1,574 declines. On the NSE, on Friday, there were 660 advances, 978
declines and 70 unchanged. The Total
Investment & Insurance Solutions
