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5
May 2017
I had
mentioned in last week’s closing report that Nifty, Sensex might retreat a bit.
The major indices of the Indian stock markets were range-bound during the week
and closed with small losses 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: The Total Investment
& Insurance Solutions
Weekly Indices (The Total
Investment & Insurance Solutions)
Global
cues on Tuesday depressed the Indian equity markets to close on a flat-to-positive
note. According to market observers, investors were cautious ahead of the
two-day US Federal Open Market Committee (FOMC) meet which is scheduled to
commence on late Tuesday evening. Besides, sentiments were subdued by heavy
selling pressure witnessed in index heavyweights such as Reliance Industries
and Bharti Airtel. The BSE market breadth was bearish -- with 1,520 declines
and 1,350 advances. In terms of the broader markets, the S&P BSE mid-cap
index closed up by 0.38%, while the small-cap index rose by 0.31%. Positive
vibes from core sector and PMI (Purchasing Managers' Index) numbers should hold
markets in good stead, and shall ensure that recent upside momentum is not lost
amid consolidation. The Nikkei India Manufacturing Purchasing Managers' Index
(PMI), which is a composite indicator of manufacturing performance during April
2017, matched the index reading of 52.5 reported in March. Power and telecom
sector stocks traded down due to selling pressure. Along with IT, auto remained
top performing sector on a positive side. Sector-wise, the S&P BSE consumer
durables index surged by 187.28 points, the oil and gas index rose by 151.13
points and the automobile index gained 121.44 points. In contrast, the S&P
BSE healthcare index fell by 116.76 points, the capital goods index was down by
99.47 points, and the metal index edged down by 64.52 points. The Total Investment & Insurance Solutions
Global
software major Infosys on Tuesday said it would hire 10,000 American workers in
the next two years, a move seen as fallout of US President Donald Trump's
executive order on H1-B visas a fortnight ago. On Tuesday, Infosys shares
closed at Rs921.00, up 0.17% on the BSE.
Negative
global cues and heavy selling pressure in healthcare, oil and gas, and banking
stocks led the Indian equity markets to close on flat-to-negative note on
Wednesday. Market observers said investors were cautious ahead of the outcome
of the two-day US Federal Open Market Committee (FOMC) meet, due later in the
evening. The BSE market breadth favoured a bearish mood -- with 1,488 declines
and 1,357 advances. On the NSE, there were 679 advances, 849 declines and 67
unchanged on Wednesday.
The
country's two bourses National Stock Exchange (NSE) and Bombay Stock Exchange
(BSE) have given their consent for the independent listing of Reliance Home
Finance, Reliance Capital Ltd, part of Anil Ambani-led Reliance Group, said on
Wednesday. In a statement here, Reliance Capital said it has received the
requisite "No-Objection" from both National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE) to the scheme filed, facilitating the independent
listing of Reliance Home Finance on the bourses. "The company is
proceeding with filing the scheme of demerger with the National Company Law
Tribunal for approval, and Reliance Home Finance is on track to be
independently listed on stock exchanges during the next few months," the
statement said. As part of the listing proposal, nearly one million
shareholders of Reliance Capital will be allotted one share free of cost in
Reliance Home Finance for every one share held in Reliance Capital. Reliance
Home Finance has already announced strong financial results for the year ended
March 31, 2017. The Total Investment & Insurance
Solutions
Real
estate company Godrej Properties informed bourses that it has sold over 1,000
apartments across three new project launches - Godrej Origins at The Trees in
Mumbai, The Suites at Godrej Golf Links in Greater Noida and Godrej 24 at
Hinjawadi, Pune since March 2017. On Wednesday, the company’s shares closed at
Rs544.20, up 7.74% on the BSE.
Indian
equity markets cheered the decisions of the Cabinet Committee on Economic
Affairs and traded on a buoyant note during the mid-afternoon trade session on
Thursday. Banking stocks witnessed a surge of around 500 points or 2% after the
cabinet, at a meeting chaired by Prime Minister Narendra Modi on Wednesday
night, approved an ordinance to amend the Banking Regulation Act to tackle the
mounting non-performing assets (NPAs) of public sector banks. Investors'
sentiments got a filip after the cabinet approved the National Steel Policy,
2017, along with other major decisions. According to market observers, the US
Federal Reserve's decision to keep key interest rates unchanged also boosted
investors' sentiments. On the NSE, there were 784 advances, 735 declines and 79
unchanged. The BSE market breadth was bullish -- with 1,374 advances and 1,287
declines.
On
Thursday, it was reported that India's services sector, which continued to
expand for the third successive month in April, registered the lowest reading
during the three-month period. The Nikkei India Services Purchasing Managers'
Index (PMI) stood at 50.2 in April, down from 51.5 in March and compared to
50.3 in February. An index reading of above 50 indicates an overall
increase, while below 50 an overall decrease. "April PMI data for the
Indian service sector show how jittery the current economic environment is,
igniting concerns among some businesses, despite remaining in growth territory.
Slower and only marginal increases in new work and activity were seen, with these
indicators close to the stagnation mark," said Pollyanna De Lima,
economist at IHS Markit and author of the report. Firms were cautiously
optimistic towards future performance, and have been so for a while, pointed
out the analyst. Some of the sectoral indices in the Indian stock markets are
likely to be bearish for medium term investors in this context. The Total Investment & Insurance Solutions
On
Friday, the major indices of the Indian stock markets suffered a correction of
over 0.75%. With the promulgation of the ordinance on Friday amending the
Banking Regulation Act, the government announced that banks may be authorised
to initiate insolvency resolution process in respect of loan default under the
Bankruptcy Code. The ordinance has a provision under which the central
government may authorise the Reserve Bank of India to issue directions to any
banking company to initiate insolvency in respect of a default under the
provision of the Insolvency and Bankruptcy Code. 2016. The Bank Nifty closed at
22,604.95, up 1.10% for the week.The Total
Investment & Insurance Solutions
