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28
July 2017
I had
mentioned in last Friday’s closing report that Nifty, Sensex were still in a
sideways mode. The major indices of the Indian stock markets rallied during the
week and closed higher than last Friday’s close. Trading was volatile through
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) |
BSE
Sensex and NSE Nifty traded at record highs during the mid-afternoon session on
Monday, with the wider Nifty of the National Stock Exchange (NSE) trading close
to the 10,000-level. According to market observers, investors' sentiments were
boosted by hopes of healthy quarterly results from index heavyweights such as
Ambuja Cements and HDFC Bank, and buying in consumer durables, banking, IT
(information technology) and FMCG (fast moving consumer goods) stocks. On
the NSE, there were 807 advances, 860 declines and 308 unchanged. Reliance
Industries hit new all-time high, with shares of the Mukesh Ambani-led firm up
as much as 2.4%. The Total Investment & Insurance
Solutions
After
touching record highs during the early morning session, the key Indian equity
indices succumbed to profit booking and traded with marginal losses during the
mid-afternoon session on Tuesday. Expectations of healthy quarterly results,
coupled with broadly positive global cues, lifted both the NSE Nifty and BSE
Sensex to experience "gap-up" opening from their previous session's
close and touch new record highs during early hours of trade. Besides, factors
such as hopes of a lending rate cut by the Reserve Bank of India in its next
policy review meet, along with inflows of foreign funds and consistent
projection of economic growth, enhanced investors risk taking appetite. The Total Investment & Insurance Solutions
Indian
shares have hit multiple records this year amid optimism about Prime Minister
Narendra Modi's policies. A big factor for the phenomenal rise in stock value
has been the shift of Indian savers to more financial assets as prices of gold
and property moderated after the government's ban on high-value currency notes.
Also, market participants expect healthy quarterly results going forward. On
the NSE, there were 621 advances, 851 declines and 59 unchanged.
Indian
equity markets traded at a fresh high during the mid-afternoon session on
Wednesday on expectations of healthy quarterly results, coupled with broadly
positive cues and intense buying activity witnessed in metal, automobile and
capital goods stocks. However, some gains were capped as investors continued to
book profits. Caution also prevailed in the global markets ahead of the outcome
of the two-day US Federal Open Market Committee meet later in the evening. The
wider Nifty of the National Stock Exchange (NSE) traded above the 10,000-level
and scaled an intra-day high of 10,010.80 points. On the NSE, there were 736
advances, 738 declines and 59 unchanged. The advance-decline ratio of Nifty on
the NSE stood at 19 advances, 31 declines and 1 unchanged. Top gainers on NSE
were Infratel, Indiabulls Housing Finance and Vedanta, while top losers were
Zee Entertainment, Eicher Motors and Tata motors.
The
key Indian equity index -- NSE Nifty 50 -- has the potential to sustain beyond
the 10,000-point mark, contingent on healthy quarterly results outcome, experts
opined on Tuesday. The optimism over the continued uptrend on NSE Nifty comes
after the index breached the 10,000 points mark during the early-morning trade
session on Tuesday.
Paint
manufacturer Asian Paints reported a 20.23% fall in its consolidated net profit
at Rs440.74 crore for the quarter ended June 30, 2017 as compared to Rs552.56
crore in the corresponding quarter last year. Its total income increased by
nearly 5% to Rs4,306.60 crore during the quarter under review as against
Rs4,103.56 crore in the same period last year. “The decorative business in
India registered low single digit volume growth in the current quarter with the
business getting impacted especially in the month of June due to GST roll-out
from July 1,” said its Managing Director and CEO K.B.S. Anand. "Good
demand conditions in the auto original equipment manufacturer and general
industrial business segment led to improved performance of the automotive
coatings JV. In the industrial coatings JV, Industrial Liquid Paints segment
registered good growth," he said. The company’s shares closed at
Rs1,135.50, down 1.43% on the BSE.
Software
major Wipro tied up with global IT major Hewlett Packard Enterprise (HPE) to
offer IT (information technology) infrastructure solutions to enterprises on
pay-per-use billing. "The consumption-based or pay-per-use IT
Infrastructure procurement and provisioning will be offered to HPE and our
customers, globally," said the outsourcing firm in a statement here. The
partnership will enable Wipro to leverage HPE capacity to offer flexible and
scalable IT infrastructure services for digital transformation of the latter's
customers. "The alliance will enhance security, agility, scalability of
our customers' IT infrastructure and help them ascertain and regulate the
public cloud economics of their data centres," asserted the statement.
Highlighting the significance of the tie-up with HPE, Wipro Chief Executive
Abidali Neemuchwala said the consumption-based model would allow the company to
offer variable pricing for the IT infrastructure value chain. The company’s
shares closed at Rs289.95, up 0.03% on the BSE. The Total Investment & Insurance Solutions
The
key Indian equity indices continued to reach record highs on Thursday on the
back of political developments in the country and intense buying in the banking
sector. According to market observers, healthy buying in index heavyweights
such as HDFC and HDFC Bank, coupled with positive global cues and expectations
of healthy quarterly results, buoyed investors' sentiments. However, profit
booking in sectors such as consumer durables, healthcare and metal stocks
capped gains. Today was also the day for July derivatives expiry and hence
volatility was higher. On the NSE, there were 473 advances, 1,192 declines and
298 unchanged.
The
global cues have not been affecting the markets much because the local factors
are strong. One of the reasons is the political development, because the ruling
party has become stronger, pointed out market analysts, after Nitish Kumar
walked back into the fold of National Democratic Alliance and formed a new
government in Bihar, jointly with Bhartiya Janata Party (BJP). The Total Investment & Insurance Solutions
Negative
global cues, coupled with disappointing quarterly results and selling pressure
in healthcare, banking and capital goods stocks subdued the Indian equity
markets during the mid-afternoon trade session on Friday. The wider Nifty50 of
the National Stock Exchange (NSE) briefly slipped below the important
10,000-mark as investors booked profits. August derivatives series began on a
subdued note amid disappointing earnings by corporates. Metal, healthcare,
bank, realty, technology, auto, power and IT (information technology) stocks
were trading in the negative zone. The laggards that pulled down the indices
were Lupin, Hindustan Unilever (HUL), Sun Pharma, ONGC, TCS, Bharti Airtel,
Reliance Industries, Bajaj Auto, Tata Steel and HDFC Bank. Towards the close of
trading on Friday, the major indices improved so that the markets ended on a
flat-to-negative note. On the NSE, there were 797 advances, 859 declines and
309 unchanged. The Total Investment & Insurance
Solutions
While
the Indian stock markets were weak on Friday, US stocks opened higher on Thursday,
with major indices hitting record highs, bolstered by upbeat earnings. Shares
of Facebook soared over 5% early on Thursday, after the social media giant
posted better-than-expected quarterly results, Xinhua news agency reported.
Facebook reported second-quarter diluted earnings per share of $1.32 on revenue
of $9.32 billion. The company also posted its daily active users of 1.32
billion on average for June 2017, an increase of 17% year-on-year. Twitter and
Comcast also announced quarterly earnings that topped Wall Street estimates.
This earnings season has been strong so far. It has pushed the major indices to
notch record highs recently.The Total
Investment & Insurance Solutions
