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7
April 2017
I had
mentioned in last week’s closing report that Nifty, Sensex may go sideways. The
market opened on a positive note on Monday, with the rally continuing on
Wednesday after the off on Tuesday; the rally however didn’t continue on
Thursday. Overall, for the whole week, the major indices closed with marginal
gains. 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)
Positive
domestic cues, coupled with a strong rupee and healthy buying in capital goods
and consumer durables sectors, gave a fillip to the Indian equity markets
during the mid-afternoon trade session on Monday. Both the key Indian indices
touched new 52-week high levels during the intra-day trade.
Healthy
macro-economic data -- the Nikkei India Manufacturing Purchasing Managers'
Index (PMI), which showed that India's manufacturing activity rose to 52.5 in
March from 50.7 in February -- aided the upward trajectory of the key Indian
indices. Besides, investors' sentiments were buoyed by the passage of the Goods
and Services Tax Bill 2017 -- a major tax reform -- and Finance Minister Arun
Jaitley's pegging India's GDP growth at 7.7% in 2018. The Total Investment & Insurance Solutions
The
Indian markets were closed on Tuesday on the occasion of Ram Navami.
The
Nifty ended 0.30% higher at 9,265.15. Earlier in the day the index hit 9273.9,
its highest ever. Indian shares climbed with key benchmarks registering new
record high as foreign funds continue to ramp up their investments in local
equities. The S&P BSE Sensex gained 0.2% to 29,974.24 – a record closing
for the 30-share index. Intraday, the benchmark crossed the 30,000 mark for the
first time since March 2015. Meanwhile, the NSE’s Nifty 50 index rose 0.3% to
9,265, also a record close for the index. The 50-share index made an intraday
high of 9,273. All the sectoral indices, barring the technology index, advanced
on the BSE. The market breadth was dominated by the bulls, with three
stocks advancing to every one stock that declined on the NSE. In the sectoral
landscape, realty stocks surged the most, sending the S&P BSE Realty index
4% higher, at 1671.21. The rally was fuelled by rise in shares of Sobha, Godrej
Properties and Unitech. The domestic equity market continued its winning
momentum for a second straight trading session of FY18 as benchmark indices hit
fresh highs, fuelled by heavy buying in blue chips such as Reliance Industries,
Maruti Suzuki and L&T.
The
S&P BSE Sensex closed the session 47 points lower, at 29,927, with ITC,
ICICI Bank and SBI contributing most to the fall. The headline index, which
opened at 29,946 against the previous day’s close of 29,974, hit an intraday
high and low of 29,954 and 29,817, respectively.
In the
midcap space, the S&P BSE Midcap index closed 0.15% higher, at 14,276, with
Jindal Steel, Concor and M&M Finance being the major contributors in the
surge in the index. The broader Nifty50 of the National Stock Exchange (NSE)
ended at 9,261, down 3.20 points.
Benchmark
indices ended the day on a lower note, but not before staging a recovery from
the day’s low after the RBI’s policy announcement. The Street had factored in
the central bank’s decision. A rally in real estate stocks could have helped in
the recovery.
The
Reserve Bank of India (RBI) kept the repo rate unchanged at 6.25% on Thursday,
forecast robust 7.4% growth in 2017-18 aided by waning effects of
demonetisation, although inflation risks remain in the medium term. The RBI
hinted at a looming inflation threat over the next 6-12 months, obliquely
leaving the door ajar for an interest rate hike in 2017-18. For 2017-18,
inflation is projected to an average 4.5% in the first half and 5% in the
second half. “Underlying inflation pressures persist, especially in the prices
of services. Input cost pressures are gradually bringing back pricing power to
enterprises as demand conditions improve,” the central bank said flagging weak
monsoon, expected rise in government employees’ allowances and goods and services
tax (GST) as the primary factors that could knock up prices in the short-term. The Total Investment & Insurance
Solutions
On
Friday, the Indian Equity Benchmarks fell sharply, with the Sensex falling
220.73 points, closing at 29,706.61, and Nifty closing slightly below the 9,200
mark, at 9,198.30, after the US military launched cruise missiles against a
Syrian airfield. The market however recovered some losses during the noon trade
on clearance to important GST bills in Rajya Sabha.
Markets
across the globe came under pressure after the US military launched cruise
missile strikes against a Syrian airbase controlled by President Bashar
al-Assad's forces in response to a chemical attack in a rebel-held area. The Total Investment & Insurance
Solutions
Asian
equities ended mixed but European markets like France's CAC and Germany's DAX were
trading lower by 0.1-0.5%. However, the rupee strengthened against the US
dollar, 28 paise from previous close, ending at 64.23. The Total Investment & Insurance
Solutions
Reliance
Industries, ending 2.31% lower because of profit booking following the TRAI
order to Jio to withdraw its Summer Surprise Offer, was the biggest contributor
to the Sensex fall. Shares of Idea and Bharti Airtel rose by 1.04% and
0.89% respectively after the announcement. Avenue Supermarts gained 14.22% on
NSE, closing at Rs758.90 after the credit rating agency CRISIL upgraded its
rating on the long-term bank facilities and non-convertible debentures of the
company to ‘CRISIL AA/Stable’ from ‘CRISIL AA-/Positive’. The Total Investment & Insurance
Solutions
In the
Sector space, Pharma sector fell the most, by 1.35%, with Sun Pharma, Lupin and
Dr Reddy’s contributing most to the fall, falling by 3.04%, 2.61% and 2.32%
respectively. Auto- 2 & 3 wheelers sector rose the most, by 0.82%, the
major contributors being TVS Motor (4.18%) and Scooters India (3.83%). The Total Investment & Insurance
Solutions
The BSE
market breadth was bearish -- with 1,660 declines and 1,250 advances. On NSE,
there were 1,042 declines, 648 advances and 72 unchanged. The Total Investment & Insurance
Solutions
