Markets End Week Positive; Parliamentary Proceedings To Give Direction

DSIJ Intelligence / 23 Nov 2012

The markets have moved in tandem with its global peers to post gain of 1.30% and 1.16% respectively for Sensex and Nifty.

After remaining in red for the last two weeks the Indian markets have closed in green this week. The markets have moved in tandem with its global peers to post gain of 1.30% and 1.16% respectively for Sensex and Nifty.

Benchmark Indices
Index	23-Nov-12	16-Nov-12	% Change
SENSEX	18,506.57	18,269.38	1.30
NIFTY	5626.6	5562.2	1.16
Hang Seng	21,913.98	21,159.01	3.57
Nikkei	9,366.80	9,024.16	3.80
Shanghai	2,027.38	2,014.72	0.63
Dow Jones*	12,836.39	12,542.38	2.34
S&P 500*	1,391.03	1,353.33	2.79
NASDAQ*	2,926.55	2,524.36	15.93
Bovespa*	56436.97	56279.36	0.28
FTSE*	5,793.75	5,647.13	2.60
DAX*	7,236.66	6,988.59	3.55
CAC*	3,490.81	3,365.00	3.74
* closing till Thursday

The Indian markets closed in the green after remaining in the negative zone for the last two weeks. The start of the winter session at the parliament was stormy. With the opposition parties going all out against the governments move over the FDI in retail. This session is much awaited and watched closely by investors all around as this session will see through the government’s stance on the implementation of the reforms process initiated three months back. Moreover, failure of former UPA ally the Trinamool Congress to bring a no-confidence motion against the government in the Lok Sabha over FDI in retail also helped improve sentiment.

On the divestment front, the process has been initiated with the Hindustan Copper offer for sale. The centre aims to raise Rs 30,000 crore ($5.5 billion) through share sales in state-run companies in the current fiscal year that ends in March 2013. Even the government has also approved 9.5% stake sale in NTPC. The growing concerns over the widening deficit may be addressed to some extent if the divestment process goes through as planned.

On the global front, the European stocks rallied for a fourth day and metals gained on signs that China’s manufacturing is rebounding. The euro strengthened and Greek bonds rose for a 10th day as the region’s leaders prepared to hold budget talks. Asian stocks outside Japan swung between gains and losses as Lynas Corp. advanced and LG Electronics Inc. fell.

Currency Rate
Index	23-Nov-12	16-Nov-12	% Change
USD	55.34	54.99	-0.63%
EURO	71.37	70.22	-1.63%
GBP	88.30	87.21	-1.24%
JYP (per 100)	67.24	67.88	0.94%

The INR depreciated in comparison to other currencies. Today it also breached the low of Rs 55.54/ USD since September 7th 2012. Against USD the euro strengthened to a three- week high and stocks erased declines after a report showed German business confidence unexpectedly rose in November. Taiwanese shares climbed the most in 11 months.

Key Commodity Indicators
Index	23-Nov-12	16-Nov-12	% Change
Gold	32020	31518	1.59
Silver	62,531.00	60,722.00	2.98
Crude Oil (Brent)	110.34	107.98	2.19
Crude Oil (WTI)	87.08	85.16	2.25

Crude witnessed better movement with the onset of winter and rising tension along the Gaza strip. Brent crude oil closed with a gain of 2.19%. The precious metals too witnessed better gains with the gold and silver with a gain of 1.59% and 2.98% respectively.

Sectoral Indices
Category/Index	23-Nov-12	16-Nov-12	% Change
Broad
MIDCAP	6597.42	6643.03	-0.69
SMLCAP	7057.11	7097.04	-0.56
BSE-100	5648.87	5596.39	0.94
BSE-200	2286.08	2269.25	0.74
BSE-500	7151.7	7109.57	0.59
Sectoral Indices
FMCG	5815.39	5653	2.87
CD	7476.93	7500.23	-0.31
BANKEX	13178.67	13007.18	1.32
TECk	3399.91	3349.77	1.50
AUTO	10558.83	10370.01	1.82
IT	5733.43	5654.71	1.39
PSU	7003.98	7080.21	-1.08
HC	7703.04	7674.27	0.37
POWER	1920.1	1937.38	-0.89
CG	10630.36	10618.53	0.11
OIL&GAS	7987.56	8065.1	-0.96
REALTY	1869.11	1877.75	-0.46
METAL	9801.24	9842.67	-0.42

Back in India, on the broader market most of the indices have closed the week on a positive note. On the sectoral basis, out of the 13 indices, 6 have closed in red. This week the major gainer is the BSE FMCG index closing the week with a gain of more than 2%. It is followed by BSE Auto index (+1.82%) and BSE Teck index (+1.50%). The main draggers this week have been the BSE PSU index which closed the week declining by more than 1%. The other draggers were the BSE Oil & Gas index (-0.96%) and BSE Power index (-0.89%).

Gainers			Losers
Scrip	LTP (Rs)	Change (%)	Scrip	LTP (Rs)	Change (%)
Antarctica	0.5	42.86	ShalimrPai	134.4	-79.7
CompucomSo	19.3	36.4	Ruby Mills	337.95	-52.25
HERITAGEFO	527	30.98	Birla Cots	0.15	-25
BAG Films	5.8	28.89	Paramo.Pri	3.25	-22.62
Jet Airway	505.6	27.16	Glodyne Te	34.35	-22.55
K Sera Ser	7.6	25.62	Ashco Indu	0.75	-21.05
Syncom Hea	17.2	23.74	Hotel Rugb	27.3	-20.41
PioneerDis	59.15	22.21	CountryCon	1	-20
Shree Asht	2.8	21.74	GEI HamonI	53.1	-17.67
RAMANEWSPR	14.95	20.56	Sambhaav M	2.15	-17.31

The money inflows from the FIIs remained strong in the last week. The FIIs pumped in Rs 2094 crore during the week in equities taking the total to 999311 crore for the present calendar year. The DIIs ended the week in red selling off equities worth Rs 410 crore in the last week. The widening deficit remains a cause of concern. Although there will be eyes on the winter session, but with the adjournment of the house proceedings in the first two days may act as a spoilsport. Volatility going forward in the markets cannot be ruled out. However, we are of the opinion that the markets will be able to steer through this and will witness better movement going forward.