Saturday, 3 November 2012

Markets post marginal gains with no major action on bourses




Markets post marginal gains with no major action on bourses
Indian markets settled with marginal gains and remained in a narrow range throughout the week. The Sensex shut shop gaining 0.70% while the Nifty rose 0.59% for the week ended November 02, 2012.

Major Headlines for the week:
Indian indices
The Indian markets chose to be in a consolidation mode this week and traded in a tight range. The markets witnessed lackluster trading sessions with no major movements for the week ended November 2, 2012. There were no great triggers that could lift the markets higher, which led the key indices to trade in a narrow range. This was the forty fourth trading week of 2012 for the Indian markets which closed with marginal gains after last week's drop. The gains were restricted as investors were worried about the impact of Hurricane Sandy in the US. The reshuffling of the cabinet which happened on Sunday (October 28, 2012) helped the market to trade in the green territory. Key benchmark indices gained in 4 out of five trading sessions.

The BSE Mid-Cap index rose 0.64%. The BSE Small Cap index fell 0.31%. Both these indices underperformed the Sensex. The BSE Sensex rose 130.11 points or 0.70% to 18,755.45 while NSE Nifty rose 33.40 points or 0.59% to settle at 5,697.70.

Major Events
·    The Reserve Bank of India left the key interest rates unchanged but reduced cash reserve ratio by 0.25% to infuse additional liquidity that will inject Rs17,500 crore into the financial system. Accordingly, the CRR or the portion of deposits banks have to park with the RBI now stands at 4.25% while the repo rate, at which RBI lends to the system, has been retained at 8%. The reverse repo, at which RBI absorbs excess liquidity through borrowings from banks, remains at 7%.
·    The HSBC manufacturing purchasing managers' index (PMI), which gauges the business activity of India's factories but not its utilities, nudged up to 52.9 in October from 52.8 in September. India's manufacturing growth inched up in October from September's 10-month low.
·    The government said that, it will continue efforts to restrict fiscal deficit in the current financial year to 5.3% of the Gross Domestic Product (GDP) and reduce it to 3% by 2016-17. The fiscal deficit was 5.8% in 2011-12.
Weekly market trend from October 29 - November 02, 2012
·    The Key benchmark indices eked out with marginal gains in choppy trade on Monday, (October 29, 2012), as the Finance Minister P. Chidambaram announced a plan of fiscal consolidation during the period of the 12th Plan, i.e. from 2012-13 to 2016-17. The Sensex closed at 18,635.85, up by 10.48 points while the Nifty rose by 1.30 points to close at 5,665.60.
·    The Indian markets declined on Tuesday, (October 30, 2012), as the RBI kept its repo rate unchanged owing to raised inflation forecast concern for FY13 to 7.5% from 7% earlier and reduced GDP projection to 5.8% for FY13 from 6.5% earlier. The Sensex closed at 18430.85, down by 204.97 points and the Nifty fell 67.70 points to close at 5597.90.
·    Key benchmark indices edged higher on Wednesday, (October 31, 2012), Indian indices opened session on a flat note tracking mixed Asian cues and selling pressure across the market the positive opening of the European indices helped the market to remain in green territory. The BSE Sensex ended at 18505.38 up by 74.53 points and the NSE Nifty ended at 5619.70 up by 21.80 points.
·    Key benchmark indices rose on Thursday, (November 01, 2012), on the first trading session of November month. The Indian markets traded higher led by rally in the auto stocks on higher-than-expected October vehicle sales. The BSE Sensex ended at 18561.70 up by 56.32 points and the NSE Nifty ended at 5645.05 up by 25.35 points.
·    Key benchmark indices jumped on Friday, (November 02, 2012), as rally on the Dalal Street was bolstered by strong buying across the board, which pushed the Sensex above the 18,750 mark and the Nifty above 5,700. The BSE Sensex ended at 18755.45 up by 193.75 points and the NSE Nifty settled at 5697.70 up by 52.65 points.
Global indices
All the global markets closed on a positive note baring Nasdaq which slipped by 0.19% and Dow Jones which fell by 0.11%. Top gainers: Hang Seng up by 2.63%, Shanghai Composite surged by 2.46%, DAX100 rose by 1.83%, CAC40 up by 1.67%, Nikkei up by 1.32% and FTSE100 up by 1.06%.

Sectoral and stock screening
Among 13 sectoral indices, eight closed the week on a positive note and remaining five closed in negative note. Top Losers: BSE Oil & Gas down by 1.89%, BSE HC fell by 0.70%, BSE Realty slipped by 0.42%. The top gainers were BSE Bankex up by 5.08%, BSE CG rose by 3.90% and BSE IT surged by 3.16%.
 
Looking at the 'A' group stocks, the top three gainers of the week were TTK Prestige which was up by 8.85%, Titan Industries up 8.75% and Wipro up by 8.57%. The top three losers of the week were Gujarat Fluorochemicals down by 6.69%, Bharat Electronics down by 6.57% and Bharat Forge down by 6.55%.

FII/MF activity
The foreign institutional investors (FIIs) have been net buyers of the Indian stocks worth a net of Rs503.7 crore, while the domestic investors were net sellers of Indian stocks to the tune of Rs237.8 crore during the week till November 01, 2012.
TOP MOVERS (GROUP A) 

Company
Price (Rs)
% chg
Gainers
TTK Prestige
3,400.20
8.85
Titan Industries
288.45
8.75
Wipro
364.95
8.57
Losers
Gujarat Fluorochemicals
332.15
-6.69
BEL
1,202.00
-6.57
Bharat Forge
269.20
-6.55

 FII/MF ACTIVITIES

Rs (cr)
FII
MF
Gross purchase
7,325
1,604
Gross sale
6,821
1,842
Net investment
503
-237
Data as on November 01, 2012
Market Outlook
The coming week may set the market movement owing to release of the next batch of corporate earnings, macroeconomic data and US presidential elections which will dictate near term trend on the bourses.

Market Economics will unveil HSBC India Services purchasing managers' index (PMI) for October 2012 on Monday, November 05, 2012.

Major companies which will announce their Q2 results in the coming week:

Cipla on Monday, November 05, 2012.

Tata Power, Reliance Infrastructure, Hindalco Industries and its US unit Novelis Inc, Hindalco Industries and its US unit Novelis Inc. on Tuesday, November 06, 2012.

Bharti Airtel and Tata Motors on Wednesday, November 07, 2012.

Ranbaxy Laboratories, Sun Pharmaceuticals Industries and ONGC on Thursday, November 08, 2012.

Tata Steel, Jindal Steel & Power, Coal India, State Bank of India and BPCL on Friday, 9 November 2012.

On the global front, the elections for a new president in the United States, the world's biggest economy is scheduled on Tuesday November 06, 2012. The 18th Communist Party Congress which officially kicks off China's once-in-a-decade leadership change begins on Thursday, November 08, 2012.

**Information received from source. 


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