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23
June 2017
I had
mentioned in last Friday’s weekly closing report that Nifty, Sensex were to
move sideways. The major indices of the Indian stock markets have been
range-bound over the week’s trading and closed on Friday with little change
over last Friday’s close. Nifty, in particular, closed with a minor loss for
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)
Cheered
by positive global cues and buying in banking, metal and capital goods stocks,
the Indian equity markets surged on Monday, the 30-scrip Sensitive index
(Sensex) of the BSE closing at another fresh high. Shares of major banks rose
and added to the gains on reports that Prime Minister Narendra Modi will review
the measures taken by the Reserve Bank of India (RBI) to resolve the
non-performing assets (NPA) issue of the Indian state-run banks. The Bank Nifty
index scaled a record high of 23,806.65 points. The wider Nifty of the National
Stock Exchange (NSE) rose by 69.50 points or 0.72% to close at 9,657.55 points.
Besides, investors' sentiments were buoyant after the GST Council on Sunday
unanimously agreed on the July 1 rollout of the Goods and Services Tax (GST)
regime. However, the BSE market breadth was bearish -- with 1,467
declines and 1,218 advances.
Prolonged
outflow of foreign funds and selling pressure on banking and FMCG stocks wiped
off the morning gains and led the Indian equity markets to close on a
flat-to-negative note on Tuesday. However, positive European markets and
healthy buying in consumer durables, IT, and oil and gas stocks limited the
downslide. The wider Nifty of the National Stock Exchange (NSE) inched lower by
4.05 points, or 0.04%, to close at 9,653.50 points. The 30-scrip Sensex of the
BSE, which opened at 31,392.53 points, closed at 31,297.53 points, down 14.04
points, or 0.04%, from its previous close at 31,311.57 points. The Sensex
touched a high of 31,392.53 and a low of 31,261.49 points during intra-day
trade. The BSE market breadth was bearish with 1,428 declines and 1,229
advances. In terms of the broader markets, the BSE mid-cap and small-cap
indices outperformed the Sensex. The S&P BSE mid-cap index was up 0.19% and
the small-cap index by 0.19%. The Total
Investment & Insurance Solutions
On
Tuesday, Tata Motors was the top gainer on the Sensex as its parent was said to
be considering an initial public offering in luxury car-maker unit Jaguar Land
Rover. Shares of Lupin fell by 1.9% after Credit Suisse said the price erosion
risk faced by the company is highest as 75% of USA profit is from
low-competition products. Shares of the logistics companies rallied anywhere
between 2% and 9% as the country geared up for the launch of unified tax
regime, GST. European stocks rose, heading for their best three-day rise since
April, boosted by gains in media shares and optimism about the US economy.
Engineering
and construction major L&T rose on high volumes on reports the Government
of India offloaded a part of its stake in the company via block deals on
Wednesday. According to reports, the Government of India sold 2.5% stake in the
company via block deals on the stock exchanges on Wednesday, 21 June 2017. On
the BSE, 2.39 crore shares were traded on the counter as against the average
daily volumes of 1.97 lakh shares in the past one quarter. Most PSU bank stocks
rose. Private bank stocks saw mixed trend. Most metal and mining stocks
fell.
Meanwhile,
on Wednesday, media reports suggested that ABB India is in discussions with
L&T to acquire the latter's electrical and automation division. According
to reports, ABB has offered over Rs14000 crore for the deal and discussions are
yet to arrive at a final figure. In a separate development, NHPC announced
after market hours on Tuesday, 20 June 2017 that it awarded EPC contract for
the development of 50 megawatts (MW) Solar Power project in Tamil Nadu to
L&T for an amount of Rs287.48 crore. The project is slated to complete in 9
months.
Taking
cue from global markets the key Indian equity market indices on Thursday opened
higher. The Sensitive Index (Sensex) of the BSE, which had closed at 31,283.64
points on Wednesday, opened higher at 31,351.53 points. It touched a new high
of 31,522.87 points during intra-day trade. On the NSE, there were 621
advances, 1,045 declines and 81 unchanged.
After
two days of corrections, the Indian equity markets closed on a flat note during
Thursday's trade session. With speculation on further interest rates hikes from
the US government, stock markets in India were being hesitant about new market
rallies even in the middle of a reasonable South-West monsoon and good domestic
economy trends. Medium term investors could expect to book profits by Diwali. The Total Investment & Insurance Solutions
On
Thursday, buying in stocks of banking majors such as State Bank of India, Axis
Bank and HDFC Bank lifted the market sentiment. Bank Nifty closed at 23,736.10,
up 0.12% on the NSE.
The
Indian equity markets traded in the red throughout Friday as broadly negative
global cues, coupled with caution ahead of the Goods and Services Tax (GST)
implementation and selling pressure in automobile, capital goods, oil and gas
and banking stocks, subdued investor sentiments. At the close of trading on
Friday, the major indices closed with losses over Thursday’s close.The Total Investment & Insurance Solutions
