The highlight of this week was Fed comments on sustaining its bond purchases, aka stimulus spending until the moment it sees sustainable development in US economy. Markets across Asia and Europe cheered the statements and rallied as reversals of outflows have made their economies even more vulnerable. Indian markets had another reason to cheer as Infosys posted bested the street expectations. Sensex and Nifty ended this week up 2.4% each, while CNX Midcap was up by 1.1%.
Monday - Sensex down by 0.9%, Nifty down by 1.0%, Midcap down by 0.3%
Markets went down as Indian President agreed to passing of controversial Food Bill Ordinance, which provides 2/3rd of Indian population with legal right to cheap food grains. The food bill is expected to dent a big hole in Indian govt budgetary calculations. Strong US dollar on the back of positive US job data also led to rupee breaching 61 mark and causing nervousness among investors.
Tuesday - Sensex up by 0.6%, Nifty up by 0.8%, Midcap up by 0.8%
Investors’ mood turned positive after rupee recovered sharply as RBI and SEBI announced steps to curb currency speculation. Eurozone markets also rallied as Portugal moves closer to political stability and Greece got another bailout approval.
Wednesday - Sensex down by 0.7%, Nifty down by 0.7%, Midcap down by 0.5%
Markets slipped as investors turned cautious ahead of Fed meeting, commencement of earning season and release of a bunch of Indian economic data. Refinery stocks came under pressure as RBI in a bid to curb currency speculation directed all state oil companies to use one single bank for their dollar transaction.
Thursday - Sensex up by 2.0%, Nifty up by 2.0%, Midcap up by 0.7%
Markets regained their bullishness as Fed comments of continuing stimulus bolstered the investor sentiment. The comments allayed the fear of flight of foreign flows from emerging markets in hurry and hopefully will put a brake on it. Bank of Japan also reiterated its stance of keeping its bond purchase program unchanged as per market expectation.
Friday - Sensex up by 1.4%, Nifty up by 1.2%, Midcap up by 0.3%
Markets continue its upward movement as Infosys the leading IT company, announced results that beat market expectation. The company left its FY14 dollar sales growth guidance unchanged at 6-10%, which boosted the investor sentiment. India's trade deficit in June narrowed to $12.24bn from a 7 month high, helped by slowdown in gold imports. Lowering of trade deficit will hopefully provide a cushion to current account balance and rupee also.
No comments:
Post a Comment