Markets Closes Flat However Remains Higher For The Week
DSIJ Intelligence / 17 Aug 2012
Indian Markets today opened on a firm positive note today however lost it gains after the report of CAG over the coal mining scam and finally closed on a flat positive note
Indian Markets today opened on a firm positive note however lost it gains in the afternoon after CAG came up with its report over the coal mining scam. Both the index Sensex and Nifty closed higher by 0.19% and 0.06% respectively. CAG reports focused on the alleged losses to the government to around 2 lakh crore because of violation of norms in allocation of coal blocks, the companies like Reliance Power and Tata Power and other 23 firms including Essar Power, Hindalco, Tata Steel, and JSPL were named in the report.
However the overall week remained positive for the market. It began on a softer note on Monday as investors were looking forward to the WPI inflation numbers for the month of July 2012. It did not disappointed as WPI for the month of July came in at 6.87% which was below 7.25% for the month of June indicating declining trend. Market reacted positively as the inflation for the second consecutive month saw decline and provides room for the RBI to cut the rate in its meeting which is scheduled in the month of September 2012. The markets are also hoping for some major reforms from the new finance ministry to be announced in the coming days that will help the economy to be back on the growth track.
| Benchmark Indices | |||
|---|---|---|---|
| Index | 10-Aug-12 | 17-Aug-12 | % Change |
| SENSEX | 17557.74 | 17691.08 | 0.76% |
| NIFTY | 5320.4 | 5366.3 | 0.86% |
| Hang Seng | 20136 | 20116.7 | -0.10% |
| Nikkei | 8891 | 9162.5 | 3.05% |
| Shanghai | 2169 | 2114.69 | -2.50% |
| Dow Jones* | 13165 | 13250 | 0.65% |
| S&P 500* | 1403 | 1405.17 | 0.15% |
| NASDAQ* | 3019 | 3062.39 | 1.44% |
| Bovespa* | 58797 | 59445 | 1.10% |
| FTSE* | 5842 | 5834 | -0.14% |
| DAX* | 6930 | 7011 | 1.17% |
| CAC* | 3429 | 3481 | 1.52% |
On the global front, developed markets like that of US and Europe also had a decent performance during the week. With Dow Jones, S&P and other European markets like FTSE and CAC traded higher in the range almost 1 per cent. This is on the back of hope that Spain was likely to announce the stimulus measure to further bring the ailing economy on its growth track. Also there was news that the policymakers may resolve their differences and work closely to tackle the debt crisis.
The Fed governor is going to meet on 31 August 2012 and investors are hoping for Fed to announce some QE measure. Further the June quarter earning number announced by Cisco remained strong indicated a better picture of the US economy.
The Asian Markets for the week remained quiet mixed on the back of positive cues from the European Regions and weak Chinese data. Chinese shares dropped as weak economic data remained as a weight on sentiment, with investors also shrugging off recent remarks from Chinese Premier Wen Jiabao indicating towards more monetary policy action. However Japan's Nikkei share average rose 3 percent on this week on the expectations of impending action from the ECB to fight the region's fiscal problems and recent stronger-than-expected U.S. economic data have helped the benchmark index rally after it.
Back home, all of the BSE Sectoral Indices closed in positive territory. Among the major gainers Pharma, Power, Consumer goods, and Realty, indices closed higher with the gains of 4.32%, 5.02%, 4.67 and 4.11% respectively. The power stock rallied on the back of hike in the power tariff by the state MSEB state electricity board. Also government approved the new Fuel Supply agreement (FSA) model with the power companies which led to further jump in the stocks. Pharma stock too rallied after most of the pharma companies reported strong earnings for the June quarter 2012. Other Indices like Auto, Bankex, IT, FMCG and PSU were among the other gainers higher in the range of 1.5% to 2.52% respectively.
| Sectoral Indices | |||
|---|---|---|---|
| Category/Index | 12-Aug-12 | 17-Aug-12 | % Change |
| Broad | |||
| MIDCAP | 6,098.12 | 6,157.96 | 3.09% |
| SMLCAP | 6,568.63 | 6,615.25 | 2.99% |
| BSE-100 | 5,313.58 | 5,352.71 | 2.36% |
| BSE-200 | 2,149.05 | 2,165.91 | 2.47% |
| BSE-500 | 6,713.50 | 6,765.45 | 2.51% |
| Sectors | |||
| AUTO | 9,482.84 | 9,535.47 | 1.47% |
| BANKEX | 11,991.62 | 11,961.03 | 1.73% |
| CD | 6,370.93 | 6,373.79 | 1.78% |
| CG | 9,906.36 | 10,047.91 | 4.67% |
| FMCG | 5,190.59 | 5,205.13 | 2.00% |
| HC | 7,307.66 | 7,338.52 | 4.32% |
| IT | 5,469.36 | 5,611.78 | 2.36% |
| METAL | 10,511.75 | 10,327.46 | 0.08% |
| OIL&GAS | 8,287.41 | 8,500.52 | 2.44% |
| POWER | 1,954.20 | 1,927.28 | 5.02% |
| PSU | 7,143.92 | 7,094.54 | 2.00% |
| REALTY | 1,645.32 | 1,632.85 | 4.11% |
| TECk | 3,153.10 | 3,230.89 | 1.59% |
| Gainers | LTP | Change. (%) | Losers | LTP | Change. (%) |
|---|---|---|---|---|---|
| United Spi | 922.25 | 11.86 | INDIABULLS | 190.05 | -8.76 |
| UNITED BRE | 575.4 | 10.73 | OPTOCIRCUITS | 143.45 | -6.63 |
| WockhardtL | 1298.65 | 9.08 | JAINIRRIGATN | 79.00 | -5.55 |
| Manap.Fin | 36.75 | 8.57 | HINDALCO | 116.85 | -4.84 |
| MRPL | 63.45 | 8.18 | AREVA T&D | 184.70 | -4.54 |
| EicherMoto | 2226.75 | 7.59 | LUPIN | 556.40 | -4.28 |
| Voltas | 112.5 | 6.74 | BHARAT FORGE | 299.20 | -4.11 |
| Ranbaxy La | 515.05 | 6.57 | HPCL | 309.25 | -3.92 |
| Apollo Tyr | 91.25 | 6.35 | ITC LTD | 258.15 | -3.58 |
| IDFC | 140.65 | 6.35 | RCF | 53.25 | -3.53 |
On the other hand, there were few losers among which India bulls, Opto Circuits, Jain Irrigation closed lower near to 8 per cent and 5 per cent respectively. While companies like HIndalco, Lupin, Bharat Forge, HPCL etc closed down with lower nearly by 5% each.
In conclusion, we expect the market to trade in a narrow range with positive bias for the next week as declining inflation numbers has brought hopes on the rate cut by RBI. Also on the global front the markets are trading positive on the back of hope that the policy makers will come up with concrete measure to bring the economy out of the debt crisis. Also there are expectations on few policy reforms that may also provide positive triggers to the markets. However we advise investors to remain cautious and take a wait and watch approach.
| Key Global Indicators | |||
|---|---|---|---|
| Index | 10-Aug-12 | 17-Aug-12 | % Change |
| Gold | 29751 | 30143 | 1.32% |
| Silver | 53341 | 53737 | 0.74% |
| Crude Oil (Brent) | 111.63 | 113.82 | 1.96% |
| Crude Oil (Nymex) | 92.24 | 95.17 | 3.18% |
| Currency Rate | |||
|---|---|---|---|
| Index | 10-Aug-12 | 17-Aug-12 | % Change |
| USD | 55.344 | 55.82 | 0.86% |
| EURO | 68.0425 | 68.93 | 1.30% |
| GBP | 86.4501 | 87.52 | 1.24% |
| JYP (per 100) | 70.51 | 70.22 | -0.41% |
| Institutional Turnover (Rs / Cr) | ||
|---|---|---|
| Date | FII | DII |
| 8-Aug-12 | 1139 | -329 |
| 9-Aug-12 | 299 | -250 |
| 10-Aug-12 | 121 | -323 |
| 13-Aug-12 | 362 | -66 |
| 14-Aug-12 | 280 | 99 |
| Total | 2201 | -869 |
| Volumes (Rs.cr) | ||
|---|---|---|
| Date | BSE | NSE |
| 9-Aug-12 | 2011 | 11263 |
| 10-Aug-12 | 2192 | 10499 |
| 13-Aug-12 | 1858 | 8885 |
| 14-Aug-12 | 2154 | 9385 |
| 16-Aug-12 | 2188 | 10166 |
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