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26
May 2017
I had
mentioned in last week’s closing report that Nifty, Sensex might dip a bit. The
major indices of the Indian stock markets were volatile during the week,
dipping in the early part of the week and then rising sharply in the last two
trading days. 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
global cues and buying in FMCG (fast moving consumer goods), consumer durables
and capital goods stocks lifted the Indian equity markets during the
mid-afternoon trade session on Monday. On the NSE, on Monday, there were 408
advances, 1,080 declines and 61 unchanged. The BSE market breadth was bearish
-- with 1,462 declines and 1,042 advances. On Friday, the benchmark indices had
closed on a flat note after a volatile trade session, as investors booked
profits. It was observed that the market was overbought on a daily and weekly
basis and was vulnerable to a decline that could happen on any bad news, mainly
global.
The
state run lender Bank of India on Monday reported a standalone net loss of
Rs1,045.54 crore in the quarter ended March 31, 2017 as compared to Rs3,587.11
crore of net loss incurred in the year-ago period. Its total income in the
quarter under review stood at Rs12,335.71 crore, up by 8.35% from Rs11,384.91
crore in the corresponding period of previous financial year. The bank's
operating profit at Rs3127.48 crore in the fourth quarter of the last fiscal
was up 11% from Rs1464.19 crore in the year-ago quarter of the previous fiscal.
The lender reduced the provisions for bad loans to Rs4,483.53 crore in
January-March quarter as against Rs5,441.67 crore a year ago. The lender in the
country also reported that its gross NPAs (non-performing assets) figured at
Rs52,044.52 crore in the March quarter as against Rs49,879.12 crore in the
year-ago. The gross NPAs as a percentage of total loans stood at 13.22% as
compared to 13.07% in the year-ago quarter. As on March 31, 2017, the bank's
return on asset remained negative. The lender said no dividend has been
proposed for 2016-17 due to "non-availability of profit". The bank’s
shares closed at Rs158.45, down 11.23% on the BSE. The Total Investment & Insurance Solutions
On
Tuesday, equity benchmark indices started of the day on a flat note tracking
muted global cues. The indices extended losses in early trades on selling
pressure from traders. Depreciation of the Indian rupee against the US dollar
in initial trades also pressured the equity market sentiments, according to
market analysts. On the NSE, on Tuesday, there were 223 advances, 1,253
declines and 31 unchanged. On the BSE, on Tuesday, there were 605 advances,
2,113 declines and 158 unchanged. Overall, on Tuesday, the market trends were
bearish.
On
Tuesday, state-run gas utility Gail India (GAIL) declared a 69% fall in net
profit at Rs260 crore for the fourth quarter ended March on account of an
impairment charge on an investment, as compared to a net profit of Rs832 crore
in the same period a year ago. The company's net income, however, rose by 16%
to Rs13,674 crore, from Rs11,802.40 crore in the fourth quarter of 2015-16, as
revenue from petrochemicals rose by 57% to Rs1,766 crore and natural gas
marketing by 12.7% to Rs10,370.56 crore. GAIL, in a stock exchange filing, said
the fall in net profit was due to accounting of impairment of investments in
Ratnagiri Gas and Power Ltd (RGPPL) of Rs783 crore in the fourth quarter. The
net profit without the impact of impairment rose 25% to Rs1,043 crore in the
quarter in question over the fourth quarter of 2015-16. The GAIL board of
directors recommended the payment of final dividend of Rs2.7 per share for the
year ended March 31, 2017. The company’s shares closed at Rs380.45, down 2.74%
on the BSE.
The
Indian equity markets traded on a flat-to-negative note during the
mid-afternoon trade session on Wednesday on the back of mixed global cues,
skirmishes on the Indo-Pak border. Heavy selling pressure was seen in metal,
healthcare and capital goods stocks. Besides, a flat rupee, coupled with
caution ahead of derivatives expiry, capped gains. On the NSE, on Wednesday,
there were 277 advances, 1,231 declines and 52 unchanged. On the BSE, on
Wednesday, there were 685 advances, 2,037 declines and 147 unchanged. Overall,
the market was bearish but there was resistance to a sell-off and falling
indices. Oil-gas and aviation sector stocks were firm. Banking stocks traded
with mixed sentiments on short covering, observed market analysts. The Total Investment & Insurance Solutions
On
Wednesday, China received a downgrade on its credit rating, on worries about
the future state of its economy from credit rating agency Moody's. Moody's
brought down China's long-term local currency and foreign currency issuer
ratings by one notch to A1 from Aa3. It also changed its outlook to stable from
negative. Moody's said China's economy-wide debt levels were expected to
increase further in the years ahead, with reforms only likely to slow the
growth rate, a CNBC report added. The credit rating agency estimated the
Chinese government debt burden to rise toward 40% of its GDP by 2018. It was
observed that with slowing GDP growth, the Chinese stock markets were likely to
be less bullish in the medium term.
The
Indian equity markets on Thursday traded with gains on the back of positive
global cues, a strong rupee and healthy buying in capital goods, banking and IT
(information technology) stocks. The key indices traded with substantial gains
on the day of expiry of May futures and options (F&O) contracts. Equity benchmark
indices started off the last trading session of the current month expiry on a
firm note, tracking positive global cues and appreciation of the rupee against
the US dollar. Both the indices witnessed some recovery in early trades. It was
observed that banking stocks were currently witnessing strong buying support
with shares of SBI (State Bank of India), Yes Bank and ICICI Bank trading with
over 1% intra-day gains. IT, auto and realty sector stocks were currently
supporting the recovery in Indian equity markets, pointed out market analysts.
On the NSE, there were 1,124 advances, 320 declines and 68 unchanged. The BSE
market breadth was bullish -- with 1,878 advances and 804 declines.
Shares
of pharma major Lupin hit a 33-month low on Thursday after plunging nearly 10%
on reports that the company has received six USFDA Form 483 observations for
its Indore plant. The plant was inspected by the US drug regulator between May
8 and May 19. Lupin shares closed at Rs1,137.95, down 7.31% on the BSE. The Total Investment & Insurance Solutions
Buying
in metal and automobile stocks and a strong rupee took the Indian equity
markets to a record high during the mid-afternoon trade session on Friday. The
30-scrip Sensitive Index (Sensex) of the BSE crossed the 31,000 mark for the
first time to touch a new high of 31,074.07 points intra-day. The Nifty, too,
touched a new high of 9,604.90 points intra-day. Clearly, the market has turned
bullish, but the volatility in the market over a week/ fortnight cannot be
ignored.
The
central government said the Indian automobile sector is projected to contribute
12% to the country's GDP (gross domestic product) over the next decade. This
was stated by Girish Shankar, Secretary, Ministry of Heavy Industries and
Public Enterprises, at the Confederation of Indian Industry's (CII)
'International Automotive Supply Chain Conclave 2017'. According to Shankar,
under the "Automotive Mission Plan 2016-2026", it is projected that
India will become the third largest automobile manufacturers with the sector
contributing 12% of the GDP and creating 65 million direct and indirect jobs in
the country. He pointed out that the automobile market has "rebounded
strongly after a short blip" seen in sales in the immediate aftermath of
the demonetisation drive which commenced in November 2016. On Friday, the S
& P BSE Auto closed at 23,810.72, up 1.34% on the BSE.The Total Investment & Insurance Solutions
