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31
March 2017
I had
mentioned in last week’s closing report that Nifty, Sensex might give up some
gains. The major indices of the Indian stock markets were range-bound and made
small gains during the week. 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)
Negative
global cues and selling pressure witnessed in metal, automobile, and healthcare
stocks subdued the Indian equity markets during the mid-afternoon trade session
on Monday. The global markets were spooked as US President Donald Trump's
failure to overturn his predecessor Barack Obama's healthcare reforms and
increased concerns over his ability to implement economic policies. Following
this, the US futures markets and the dollar, as well as the Asian markets, fell
to lower levels. The European markets, too, opened broadly negative. There were
676 advances, 997 declines and 74 unchanged. There were 1,135 advances, 1,666
declines and 233 unchanged. The Total
Investment & Insurance Solutions
While
the global cues and stock market technicals have been unfavourable leading to
losses in Monday’s trading, the news developments through the day on the
macroeconomic front have been favourable indicating long term bullish trends.
Public
sector banks moved higher in the hope that the government would either announce
a new package to deal with its toxic assets or give the bankers more power to
force recovery from the borrowers. Global oil prices which were expecting a US
growth lead rally also fell even as production cartel talks resumed. The Indian
rupee, however, hit an 18-month high as FIIs (foreign institutional investors)
inflows continue to rise both in the equity and debt segment. In terms of
investments, provisional data with exchanges showed that (FIIs) purchased
stocks worth Rs577.88 crore, whereas the domestic institutional investors
(DIIs) divested scrip worth Rs594.48 crore. On Tuesday, most IT (information
technology) sector stocks traded down due to profit booking at higher levels,
while banking sector stocks witnessed good recovery from lower levels in the
second half of the session. Pharma, auto, oil-gas, power and telecom sector
stocks traded with bearish sentiments throughout the session, whereas textile,
media-entertainment and FMCG (fast moving consumer goods) sector stocks traded
with mixed sentiments. Sector-wise, the S&P BSE metal index plunged by 307.81
points, followed by the oil and gas index, which dipped by 146.25 points, and
the healthcare index, which fell by 124.22 points. On the other hand, the
S&P BSE consumer durables index surged by 178.13 points, the FMCG index
inched up 6.46 points, and the power index was a tad up by 3.03 points.
Indian
equity markets traded in the positive territory during the mid-afternoon trade
session on Wednesday as positive global cues, along with a strong rupee, buoyed
investors' sentiments. Besides, the market sentiments were lifted as Finance
Minister Arun Jaitley moved the Central Goods and Services Tax (CGST) Bill,
2017, along with three other GST Bills for consideration of and passage by the
Lok Sabha. However, with the near month March 2017 derivatives contract expiry
on Thursday, some caution prevailed. Buying was witnessed in banking, capital
goods and consumer durables stocks. There were 702 advances, 964 declines and
94 unchanged.
Positive
global cues and declining USD/INR supported the bullish sentiment. FMCG (fast
moving consumer goods), power, cement and telecom sector stocks witnessed good
strength, while IT (information technology), pharma, auto, oil-gas, textile and
media-entertainment stocks traded with mixed sentiments. The Total Investment & Insurance Solutions
Indian
equity markets on Thursday closed the day's trade in the green for the third
consecutive session, although volatility was witnessed on the day of the March
2017 derivatives contract expiry. The key indices closed in the green on the
back of a strong rupee and buying witnessed in consumer durables, banking and
capital goods stocks. On expiry of March 2017 series contracts in the futures
and options (F&O) segment, healthy roll-overs were witnessed to April 2017
series, which uplifted investors' sentiments. Besides, the passage of the Goods
and Services Tax Bill 2017 -- a major tax reform in the country, continuous
inflow of funds and healthy buying in consumer durables, banking and capital
goods sectors aided the key indices to hold on to their gains. The Total Investment & Insurance Solutions
March
derivative series rollover pulled up the market which already had favourable
fundamental push behind it. Fund flows continued to be strong despite
expectation that there could be withdrawal on account of the taxation treaty
signed by the Indian government with Singapore and Mauritius. The Total Investment & Insurance Solutions
Despite
a strong rupee attracting funds into the domestic markets, the upward movement
of key Indian equity indices was hampered by negative global cues and they
closed on a flat note on Friday. Selling pressure was witnessed in banking and
IT (information technology) stocks. The BSE market breadth was bullish -- with
1,613 advances and 1,131 declines. There were 938 advances, 698 declines
and 86 unchanged. The market is expected to remain on a flat-to-small upward
trajectory in the next one week.The Total
Investment & Insurance Solutions
