As country made progress through election and earnings season, there is bound to be volatility in both main street and dalal street expectations and sentiments. As our elections have become more personality driven, our benchmark indices are also seeing activity specific to some stocks only. Whether the country or the markets will rise above the personality or stocks cult and will broaden its horizon will get clear only after elections are over and there is some clarity on what kind of leadership we are going to end up with.
Earnings results disappointments and MET warning have already made clear that we are not out of woods yet, and time has come for us to re-check our growth assumptions and turnaround hopes.
Sensex ended this week up by 0.3% while Nifty was flat and Midcap up by 0.7%
Monday - Sensex up by 0.6%, Nifty up by 0.6%, Midcap up by 0.8%
Benchmark indices rallied to their record highs led by surge in banking stocks ahead of their expected stronger results this week. Mining stocks also got relief from SC order to allow mining up to 20mt of iron ore per year in Goa leading to a bit of rally there. AstraZeneca India rose by more than 4% after the Sunday Times reported an expected bid of its parent company by Pfizer Inc for an estimated £60bn.
Tuesday - Sensex, Nifty and Midcap all ended flat
Sensex and Nifty rose to their record highs during the day but ended almost flat at the end of trading session as monthly derivative expiry advanced to Wednesday. Thursday is holiday for exchanges due to general elections voting in Mumbai on that day.
Wednesday - Sensex up by 0.5%, Nifty up by 0.4%, Midcap flat
Markets were in cheery mood on the day of derivative expiry as both Sensex and Nifty hit record highs for a third session in row. Indices were led by gains in infrastructure and banking stocks on hopes the worst was over in terms of deterioration in asset quality.
Thursday – Markets closed as Mumbai goes to polls for General elections
Friday - Sensex down by 0.8%, Nifty down by 0.8%, Midcap down by 0.1%
Key market indices took a beating on last day of the week as heavyweights such as ICICC Bank, Maruti Suzuki, Cairn India etc disappointed with their results. The earning shocker has sent the investors double checking their growth assumptions. MET department also worsened the sentiment after predicting lower than average rainfall this year.
Sunday, April 27, 2014
Saturday, April 19, 2014
Weekly Market Commentary - Apr 14, 2014 - Apr 18, 2014
Two steps back and one forward. That is pretty much how I will describe the action on Dalal Street this (short) week. IT stalwarts - Infosys and TCS reported better earnings but gave contrasting guidance, hence making sure the sector stayed volatile during the week. Throw in a bit of inflation and you have investors in every sector running for the corners. The thing about rallies built on hope and hype is that they don’t need much to fizzle. Remember, no matter how big the bubble is, you only need one small pin to burst it.
Sensex and Nifty ended the week at pretty much the same level as last week while Midcap down by meagre 0.2%
Monday – Markets closed on occasion of Baisakhi / Ambedkar Jayanti
Tuesday - Sensex down by 0.6%, Nifty down by 0.6%, Midcap down by 0.9%
Markets were down as inflation raised its head again and soared to three-month high figure of 5.7% in March - dashing hopes of any rate reprieve from central bank. Almost all interest rate sensitive stocks fell while IT stocks surged on the back of good earnings reported by Infosys.
Wednesday - Sensex down by 0.9%, Nifty down by 0.9%, Midcap down by 0.8%
BSE Sensex corrected another 200 points as fear of rising inflation was stoked by the predictions of below normal rainfall this year. IT stocks fell as Infosys guidance pointed to weak outlook for the sector. Retail inflation also rose in tandem with WPI to 8.31% in March, largely driven by higher food prices also made investors cautious.
Thursday - Sensex up by 1.6%, Nifty up by 1.6%, Midcap up by 1.5%
Benchmark indices roared back as banks surged on value buying and hopes of bond portfolio gain as RBI fully sold the Rs.200bn debt it had on offer. IT stocks also rose as TCS and HCL reported better than expected earnings with positive future revenue guidance.
Friday - Markets closed on occasion of Good Friday
Sensex and Nifty ended the week at pretty much the same level as last week while Midcap down by meagre 0.2%
Monday – Markets closed on occasion of Baisakhi / Ambedkar Jayanti
Tuesday - Sensex down by 0.6%, Nifty down by 0.6%, Midcap down by 0.9%
Markets were down as inflation raised its head again and soared to three-month high figure of 5.7% in March - dashing hopes of any rate reprieve from central bank. Almost all interest rate sensitive stocks fell while IT stocks surged on the back of good earnings reported by Infosys.
Wednesday - Sensex down by 0.9%, Nifty down by 0.9%, Midcap down by 0.8%
BSE Sensex corrected another 200 points as fear of rising inflation was stoked by the predictions of below normal rainfall this year. IT stocks fell as Infosys guidance pointed to weak outlook for the sector. Retail inflation also rose in tandem with WPI to 8.31% in March, largely driven by higher food prices also made investors cautious.
Thursday - Sensex up by 1.6%, Nifty up by 1.6%, Midcap up by 1.5%
Benchmark indices roared back as banks surged on value buying and hopes of bond portfolio gain as RBI fully sold the Rs.200bn debt it had on offer. IT stocks also rose as TCS and HCL reported better than expected earnings with positive future revenue guidance.
Friday - Markets closed on occasion of Good Friday
Friday, April 18, 2014
Saturday, April 12, 2014
Weekly Market Commentary - Apr 7, 2014 - Apr 11, 2014
India continues to benefit from lack of alternatives in emerging market space as I already mentioned in my earlier post. Due to limited options, FIIs are pouring money into Indian markets giving the economy disproportionate share of the EM flows.
It remains to be seen for how long this situation will continue. But till then..party ho ri bahut bhayankar! :)
Sensex ended this week up by 1.2% while Nifty was up by 1.2% and Midcap up by 2.5%
Monday - Sensex slightly down by 0.1%, Nifty flat, Midcap down by 0.3%
Benchmark indices closed slightly down as country begins voting for formation of new govt at the centre. Some investors booked profits as Sensex and Nifty breached new record levels in days approaching elections. Sun Pharma leads the gainers on Sensex as company announced its purchase of Ranbaxy in total equity deal of $3.2bn. There was some action seen in cement stocks also after Swiss company Holcim, which holds more than 50% stake in ACC and Ambuja cements announced merger with France’s Lafarge. The combined entity will become the largest cement maker in India.
Tuesday – Markets closed on Ram Navmi
Wednesday - Sensex up by 1.6%, Nifty up by 1.5%, Midcap up by 1.6%
Markets surged to a new high after a brief pause and a break in beginning of the week. Sun Pharma rose by more than 7% as brokers rushed to upgrade the stock after Ranbaxy buy. Most interest rate sensitive stocks gained as investors expects more benign inflation scenario in near term.
Thursday - Sensex up slightly by 0.1%, Nifty flat, Midcap up by 1.2%
BSE Sensex ended slightly higher as gains were capped by profit booking seen in IT stocks as earnings season commences from Apr 15. In addition, investors are cautious ahead of release of IIP data. Other Asian bourses also saw some selling as US markets ended lower on concerns of high valuation of some tech stocks.
Friday - Sensex down by 0.4%, Nifty down by 0.3%, Midcap down by 0.1%
Key Indices closed lower as investors prepares for earnings season and release of inflation data next week. Govt data released on Friday showed the trade deficit widening to $10.5bn in March from $8.1bn in Feb due to lower exports.
It remains to be seen for how long this situation will continue. But till then..party ho ri bahut bhayankar! :)
Sensex ended this week up by 1.2% while Nifty was up by 1.2% and Midcap up by 2.5%
Monday - Sensex slightly down by 0.1%, Nifty flat, Midcap down by 0.3%
Benchmark indices closed slightly down as country begins voting for formation of new govt at the centre. Some investors booked profits as Sensex and Nifty breached new record levels in days approaching elections. Sun Pharma leads the gainers on Sensex as company announced its purchase of Ranbaxy in total equity deal of $3.2bn. There was some action seen in cement stocks also after Swiss company Holcim, which holds more than 50% stake in ACC and Ambuja cements announced merger with France’s Lafarge. The combined entity will become the largest cement maker in India.
Tuesday – Markets closed on Ram Navmi
Wednesday - Sensex up by 1.6%, Nifty up by 1.5%, Midcap up by 1.6%
Markets surged to a new high after a brief pause and a break in beginning of the week. Sun Pharma rose by more than 7% as brokers rushed to upgrade the stock after Ranbaxy buy. Most interest rate sensitive stocks gained as investors expects more benign inflation scenario in near term.
Thursday - Sensex up slightly by 0.1%, Nifty flat, Midcap up by 1.2%
BSE Sensex ended slightly higher as gains were capped by profit booking seen in IT stocks as earnings season commences from Apr 15. In addition, investors are cautious ahead of release of IIP data. Other Asian bourses also saw some selling as US markets ended lower on concerns of high valuation of some tech stocks.
Friday - Sensex down by 0.4%, Nifty down by 0.3%, Midcap down by 0.1%
Key Indices closed lower as investors prepares for earnings season and release of inflation data next week. Govt data released on Friday showed the trade deficit widening to $10.5bn in March from $8.1bn in Feb due to lower exports.
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