Indian markets reported a weekly loss after ending three consecutive weeks in green. As expected, markets continued to stay volatile ahead of the elections, with somewhat positive momentum. It has been almost six months the key benchmark index, sensex trading above 20k level.
RBI review meeting on Apr 1 will be next key catalyst investors are focusing on. If RBI managed to cut rates, we may expect some more rally in cyclical especially banks and capital goods.
Sensex ended this week down 0.5%, Nifty was down by 0.3% while CNX Midcap was down by 0.9%.
Monday - Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 0.5%
Markets continued their positive momentum and sensex traded above 22,000 level for a while and closing at its new record high. Investors continued to show interest in cyclicals while defensives act as source of funds. Market is expected to stay volatile in days ahead of the election with a focus on economic data release on trade deficit, IIP, CPI and WPI in the near term.
Tuesday - Sensex down by 0.5%, Nifty down by 0.4%, Midcap down by 0.3%
Profit booking across the sector led to benchmark indices losing some ground. The fall in trade deficit failed to bring cheer to the market as the data showed decline in exports. The trade deficit lowered to $8.13bn in Feb, which is lowest in past five months.
Wednesday - Sensex up by 0.1%, Nifty up by 0.1%, Midcap down by 0.4%
Markets closed at almost flat as investors keenly await inflation data release. Inflation and industrial output data are key determinants of RBI interest rate policy that will be up for discussion on April 1.
Thursday - Sensex down by 0.4%, Nifty down by 0.4%, Midcap down by 0.7%
Benchmark indices climbed to their highs as govt releases inflation stats. Feb WPI inflation declined to 4.68% vs. 5.05% in Jan due to fall in vegetable and fuel prices. However, markets quickly gave up their gains as IT stocks declined after Infosys painted beak future of its business outlook. China’s missing of its industrial growth and retail sales target also add to the selling pressure in the markets.
Friday - Sensex up by 0.2%, Nifty up by 0.2%, Midcap flat
Indian markets traded weaker during most of the day like their asian and European counterparts on fears that China may be slowing down and standoff on Ukrain may continue or even escalate. But value buying in key sensex and nifty stocks during the end of the day led the benchmark indices closing in the green.
Sunday, March 16, 2014
Saturday, March 8, 2014
Weekly Market Commentary - Mar 3, 2014 - Mar 7, 2014
Both Sensex and Nifty ended this week at record all time highs. Investors, both domestic and foreign, are rushing in Indian markets to position themselves to benefit from an expected favorable election outcome. As I mentioned in my previous post, that favorable outcome is formation of stable NDA govt at the centre. With Congress losing its fight to retain prominence and AAP continues to use reality TV gimmicks to attract voters, NDA stock continues to rise.
As far as economics is concerned -- With India outperforming most of its emerging market peers in Feb, inflation declining, deficit numbers at four-year low and GDP growth bottoming out, India is definitely at a sweet spot.
Markets are expected to remain volatile in near term, as some people will book profits as markets rise while others will position themselves to benefit in a pre-election rally.
Sensex ended this week up 3.8%, Nifty was up by 4.0% while CNX Midcap was up by 4.1%.
Monday - Sensex down by 0.8%, Nifty down by 0.9%, Midcap down by 0.4%
War mongering in Ukraine sent investors’ mood around the world rolling down. World leaders unite in censuring the Russia’s move to send the forces in Crimea. Gold went up as fear and uncertainty rose. Indian markets ignored the improvement in HSBC PMI index – 52.5 in Feb vs. 51.4 in Jan, which indicated strongest manufacturing growth in last 12 months.
Tuesday - Sensex up by 1.3%, Nifty up by 1.2%, Midcap up by 1.3%
Benchmark indices bounced to their five-week highs as Russian President called back its troops back to their bases. Almost all sectoral indices ended up in green with cyclical leading the rally.
Wednesday - Sensex up by 0.3%, Nifty up by 0.5%, Midcap up by 1.4%
Markets continued their upward momentum. The benchmark Sensex closed just around 100 points away from its previous all time high. Investors have turned bullish ahead of general elections and have largely ignored the weakness in European markets.
Thursday - Sensex up by 1.1%, Nifty up by 1.1%, Midcap up by 1.4%
Benchmark indices soared past their earlier peak and set new record highs on the back of strong bullish investor sentiment as current account deficit numbers came at four-year low. With December CAD at 0.9% of GDP, exports picking up and gold imports subdued market is hopeful that the rupee will get a boost and FII inflows will increase.
Friday - Sensex up by 1.9%, Nifty up by 2.0%, Midcap up by 0.4%
Markets extended their winning streak and ended the week with all time record highs on the back of lower CAD numbers and increased fund flows from both domestic and foreign investors. Almost all indices ended the week in green barring IT and healthcare as investors churn their portfolios from export driven to domestic cyclical stories.
As far as economics is concerned -- With India outperforming most of its emerging market peers in Feb, inflation declining, deficit numbers at four-year low and GDP growth bottoming out, India is definitely at a sweet spot.
Markets are expected to remain volatile in near term, as some people will book profits as markets rise while others will position themselves to benefit in a pre-election rally.
Sensex ended this week up 3.8%, Nifty was up by 4.0% while CNX Midcap was up by 4.1%.
Monday - Sensex down by 0.8%, Nifty down by 0.9%, Midcap down by 0.4%
War mongering in Ukraine sent investors’ mood around the world rolling down. World leaders unite in censuring the Russia’s move to send the forces in Crimea. Gold went up as fear and uncertainty rose. Indian markets ignored the improvement in HSBC PMI index – 52.5 in Feb vs. 51.4 in Jan, which indicated strongest manufacturing growth in last 12 months.
Tuesday - Sensex up by 1.3%, Nifty up by 1.2%, Midcap up by 1.3%
Benchmark indices bounced to their five-week highs as Russian President called back its troops back to their bases. Almost all sectoral indices ended up in green with cyclical leading the rally.
Wednesday - Sensex up by 0.3%, Nifty up by 0.5%, Midcap up by 1.4%
Markets continued their upward momentum. The benchmark Sensex closed just around 100 points away from its previous all time high. Investors have turned bullish ahead of general elections and have largely ignored the weakness in European markets.
Thursday - Sensex up by 1.1%, Nifty up by 1.1%, Midcap up by 1.4%
Benchmark indices soared past their earlier peak and set new record highs on the back of strong bullish investor sentiment as current account deficit numbers came at four-year low. With December CAD at 0.9% of GDP, exports picking up and gold imports subdued market is hopeful that the rupee will get a boost and FII inflows will increase.
Friday - Sensex up by 1.9%, Nifty up by 2.0%, Midcap up by 0.4%
Markets extended their winning streak and ended the week with all time record highs on the back of lower CAD numbers and increased fund flows from both domestic and foreign investors. Almost all indices ended the week in green barring IT and healthcare as investors churn their portfolios from export driven to domestic cyclical stories.
Saturday, March 1, 2014
Weekly Market Commentary - Feb 24, 2014 - Feb 28, 2014
If one goes by the direction of the market, it seems that nation (investor populace mostly) has already made up its mind regarding the outcome of Lok Sabha elections. Continuous upward momentum indicates the increasing expectations of a stable NDA government in the centre. NDA govt is widely expected to undo the decade of policy paralysis and junking of pro-growth model of development and replace it with one with more pro-market flavor.
Sensex ended this week up 2.0%, Nifty was up by 1.4% while CNX Midcap was up by 1.8%.
Monday - Sensex up by 0.5%, Nifty up by 0.9%, Midcap up by 0.4%
Markets continued to move up as buying interest emerged in capital goods and banking sector stocks on the back of favorable policy measures and reduced deficit numbers announcements by outgoing UPA govt.
Tuesday - Sensex up by 0.2%, Nifty up by 0.4%, Midcap up by 0.1%
Benchmark indices were able to hold ground after a volatile session as F&O contracts near their expiry on coming Wednesday. The optimism about US recovery led to higher closing of IT stocks.
Wednesday - Sensex up by 0.6%, Nifty down by 1.0%, Midcap up by 0.2%
Sensex regained 21,000 mark as foreign funds continued to flow in Indian equities. Stocks also gained as traders due to short covering on F&O expiry day.
Thursday – Exchanges closed on Maha Shivratri
Friday - Sensex up by 0.6%, Nifty up by 1.1%, Midcap up by 1.2%
Markets closed higher ahead of GDP data release for quarter ending December. A Bloomberg poll showed the growth expectations to be 4.7% as against 4.8% in September quarter. Mood was also positive as Fed Chairperson Janet Yellen indicated that Fed would continue its tapering program in a measured way.
Sensex ended this week up 2.0%, Nifty was up by 1.4% while CNX Midcap was up by 1.8%.
Monday - Sensex up by 0.5%, Nifty up by 0.9%, Midcap up by 0.4%
Markets continued to move up as buying interest emerged in capital goods and banking sector stocks on the back of favorable policy measures and reduced deficit numbers announcements by outgoing UPA govt.
Tuesday - Sensex up by 0.2%, Nifty up by 0.4%, Midcap up by 0.1%
Benchmark indices were able to hold ground after a volatile session as F&O contracts near their expiry on coming Wednesday. The optimism about US recovery led to higher closing of IT stocks.
Wednesday - Sensex up by 0.6%, Nifty down by 1.0%, Midcap up by 0.2%
Sensex regained 21,000 mark as foreign funds continued to flow in Indian equities. Stocks also gained as traders due to short covering on F&O expiry day.
Thursday – Exchanges closed on Maha Shivratri
Friday - Sensex up by 0.6%, Nifty up by 1.1%, Midcap up by 1.2%
Markets closed higher ahead of GDP data release for quarter ending December. A Bloomberg poll showed the growth expectations to be 4.7% as against 4.8% in September quarter. Mood was also positive as Fed Chairperson Janet Yellen indicated that Fed would continue its tapering program in a measured way.
Saturday, February 22, 2014
Weekly Market Commentary - Feb 17, 2014 - Feb 21, 2014
Markets cheered the vote-on-account. Some investors appreciated the excise duty cuts meant to boost the auto, manufacturing and capital goods sectors, while others celebrated FM meeting his fiscal deficit target of 4.8%. In fact, he has done better and achieved fiscal deficit of 4.6%. Sensex ended the week 300 points up.
However, if we look closely to the vote-on-account statements, we will observe that a lot of accounting talent has been put to use to fudge the numbers to meet the above target. FM postponed the subsidies; recorded revenues in advance; coaxed public sector companies like Coal India and few PSU banks into paying special dividends - harming the interest of their minority shareholders; moved money from one public company to another as in the case of IOC, where ONGC and Oil India will buy stake from govt.
Govt accounting has made Enron look good. Incoming govt will have an uphill task in getting the fiscal house in order.
Sensex ended this week up 1.6%, Nifty was up by 1.8% while CNX Midcap was up by 2.1%.
Monday – Sensex up by 0.5%, Nifty up by 0.4%, Midcap up by 0.1%
Markets recovered their lost ground during the closing as some buying emerged as air around the interim budget cleared. Govt move to reduce excise duty from 12% to 8% for small cars, bikes; from 30% to 24% for SUVs and; from 24% to 20% for mid segment cars came as a huge relief to reeling auto sector. Govt also reduce the excise duty for capital goods and consumer durables by 200 bps to provide a fillip to ailing manufacturing sector. FM’s accounting jugglery to meet fiscal deficit target helped India to escape the danger of rating cut from premier rating agencies.
Tuesday - Sensex up by 0.8%, Nifty up by 0.9%, Midcap up by 0.9%
Markets went up as the optimism from govt move to avoid the populism and provide a boost to certain sectors in the form of excise duty cuts improved the investor confidence. Banking sector stocks led the rally as expectations of turnaround in economy led to rise in expectations of more lending.
Wednesday – Sensex up by 0.4%, Nifty up by 0.4%, Midcap up by 0.6%
Benchmark indices continued to be buoyed by positive sentiment generated by vote-on-account. The gains were mainly on the back of overnight gains in the US market and sustained capital inflows from foreign funds.
Thursday – Sensex down by 0.9%, Nifty down by 1.0%, Midcap down by 0.2%
Market had a pullback as China reported weak manufacturing data and US maintained its stand of tapering of quantitative easing.
Friday – Sensex up by 0.8%, Nifty up by 1.1%, Midcap up by 0.8%
Stocks went up as US factory activity accelerated at its fastest pace in four years in February leading to rise in firming up of all Asian markets.
However, if we look closely to the vote-on-account statements, we will observe that a lot of accounting talent has been put to use to fudge the numbers to meet the above target. FM postponed the subsidies; recorded revenues in advance; coaxed public sector companies like Coal India and few PSU banks into paying special dividends - harming the interest of their minority shareholders; moved money from one public company to another as in the case of IOC, where ONGC and Oil India will buy stake from govt.
Govt accounting has made Enron look good. Incoming govt will have an uphill task in getting the fiscal house in order.
Sensex ended this week up 1.6%, Nifty was up by 1.8% while CNX Midcap was up by 2.1%.
Monday – Sensex up by 0.5%, Nifty up by 0.4%, Midcap up by 0.1%
Markets recovered their lost ground during the closing as some buying emerged as air around the interim budget cleared. Govt move to reduce excise duty from 12% to 8% for small cars, bikes; from 30% to 24% for SUVs and; from 24% to 20% for mid segment cars came as a huge relief to reeling auto sector. Govt also reduce the excise duty for capital goods and consumer durables by 200 bps to provide a fillip to ailing manufacturing sector. FM’s accounting jugglery to meet fiscal deficit target helped India to escape the danger of rating cut from premier rating agencies.
Tuesday - Sensex up by 0.8%, Nifty up by 0.9%, Midcap up by 0.9%
Markets went up as the optimism from govt move to avoid the populism and provide a boost to certain sectors in the form of excise duty cuts improved the investor confidence. Banking sector stocks led the rally as expectations of turnaround in economy led to rise in expectations of more lending.
Wednesday – Sensex up by 0.4%, Nifty up by 0.4%, Midcap up by 0.6%
Benchmark indices continued to be buoyed by positive sentiment generated by vote-on-account. The gains were mainly on the back of overnight gains in the US market and sustained capital inflows from foreign funds.
Thursday – Sensex down by 0.9%, Nifty down by 1.0%, Midcap down by 0.2%
Market had a pullback as China reported weak manufacturing data and US maintained its stand of tapering of quantitative easing.
Friday – Sensex up by 0.8%, Nifty up by 1.1%, Midcap up by 0.8%
Stocks went up as US factory activity accelerated at its fastest pace in four years in February leading to rise in firming up of all Asian markets.
Sunday, February 16, 2014
Weekly Market Commentary - Feb 10, 2014 - Feb 14, 2014
Highlights of this week will be the growing contrast between US economy, which has shown some strong signs of recovery in their economy, and Indian story, whose biggest facilitator public sector banks have started crumbling under the weight of increasing NPAs. The chance of some bank going under or requiring state assistance or bail-out have become very strong since United Bank of India story went out. State Bank of India’s weak results is indicator of how deep the mess is.
It is India’s worst kept secret that our public sector banks (and their investors) are suffering under crony capitalism –which reached its zenith under UPA regime. It is a high time now when our banking regulator – RBI may take a leaf out of its Governor Raghuram Rajan’s widely read book “Saving Capitalism from the Capitalist”- rolls up its sleeve and gets our banks out of clutches of this govt-crony nexus.
Sensex ended this week flat, Nifty was slightly down by 0.2% while CNX Midcap was down by 1.3%.
Monday – Sensex down by 0.2%, Nifty down by 0.2%, Midcap down by 0.3%
Markets continued their lackadaisical performance as earnings season continues without any major surprise. Investors continued to book profits on IT and banking sectors. Beginning of two-day nationwide strike by public sector bank staff also affected the trading on banking counters.
Tuesday - Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 0.1%
Indices rose slightly led by two Tata group companies. Tata motors rose the most in two months after its quarterly profit tripled. Tata Steel Ltd gained to its highest level in three weeks before its earnings report. The gains in Sensex were offset by fall in RIL shares after Delhi Chief Minister Arvind Kejriwal filed an FIR against Mukesh Ambani.
Wednesday – Sensex up by 0.4%, Nifty up by 0.4%, Midcap flat
Markets rallied after US Congress agreed to advance legislation extending US borrowing authority. Also, newly appointed Fed Chairman Janet Yellen held off from making any changes to tapering schedule set the Asian shares soaring.
Thursday – Sensex down by 1.2%, Nifty down by 1.4%, Midcap down by 1.3%
Earnings disappointment in Cipla and Coal India stocks dragged the benchmark indices down. Also, govt released data indicated that industrial output contracted by 0.6% in December meaning all is still not well with the economy although retail inflation did ease to its two year low of 8.79%.
Friday – Sensex up by 0.9%, Nifty up by 0.8%, Midcap up by 0.3%
Sensex rose on last day of the week as some traders rushed to cover their shorts ahead of presentation of interim union budget next week. Meanwhile, January WPI numbers came at 5.05% vs. 6.2% in December, lower than ET-Now poll estimate of 5.5%.
It is India’s worst kept secret that our public sector banks (and their investors) are suffering under crony capitalism –which reached its zenith under UPA regime. It is a high time now when our banking regulator – RBI may take a leaf out of its Governor Raghuram Rajan’s widely read book “Saving Capitalism from the Capitalist”- rolls up its sleeve and gets our banks out of clutches of this govt-crony nexus.
Sensex ended this week flat, Nifty was slightly down by 0.2% while CNX Midcap was down by 1.3%.
Monday – Sensex down by 0.2%, Nifty down by 0.2%, Midcap down by 0.3%
Markets continued their lackadaisical performance as earnings season continues without any major surprise. Investors continued to book profits on IT and banking sectors. Beginning of two-day nationwide strike by public sector bank staff also affected the trading on banking counters.
Tuesday - Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 0.1%
Indices rose slightly led by two Tata group companies. Tata motors rose the most in two months after its quarterly profit tripled. Tata Steel Ltd gained to its highest level in three weeks before its earnings report. The gains in Sensex were offset by fall in RIL shares after Delhi Chief Minister Arvind Kejriwal filed an FIR against Mukesh Ambani.
Wednesday – Sensex up by 0.4%, Nifty up by 0.4%, Midcap flat
Markets rallied after US Congress agreed to advance legislation extending US borrowing authority. Also, newly appointed Fed Chairman Janet Yellen held off from making any changes to tapering schedule set the Asian shares soaring.
Thursday – Sensex down by 1.2%, Nifty down by 1.4%, Midcap down by 1.3%
Earnings disappointment in Cipla and Coal India stocks dragged the benchmark indices down. Also, govt released data indicated that industrial output contracted by 0.6% in December meaning all is still not well with the economy although retail inflation did ease to its two year low of 8.79%.
Friday – Sensex up by 0.9%, Nifty up by 0.8%, Midcap up by 0.3%
Sensex rose on last day of the week as some traders rushed to cover their shorts ahead of presentation of interim union budget next week. Meanwhile, January WPI numbers came at 5.05% vs. 6.2% in December, lower than ET-Now poll estimate of 5.5%.
Sunday, February 9, 2014
Weekly Market Commentary - Feb 3, 2014 - Feb 7, 2014
Indian investors seem to have become defensive, as no new strong catalysts seem to emerge before elections in May. In fact, some of them are worried that current establishment may play a populist card to garner as much voting support as it can. The 70,000 crores farm loan waiver that UPA govt doled out is still bleeding the public sector banks’ balance sheets.
FIIs are already closing out positions in India and are avoiding fresh positions till elections. They have cut their positions worth $340mn since US Fed decided to cut its stimulus package further by $10bn on Jan 29.
Indian markets are expected to be “source of fund” for FIIs in coming months as they put their money in other markets where current environment is more congenial.
Sensex and Nifty ended this week with losses of 0.7% and 0.4% respectively while CNX Midcap fell 0.8%.
Monday – Sensex down by 1.5%, Nifty down by 1.4%, Midcap down by 1.1%
Markets continued their weak performance from previous week with Sensex falling more than 300 points as China manufacturing slowdown coupled with US Fed’s cut in stimulus spending sent caution among the foreign investors across the globe.
Tuesday - Sensex and Nifty flat, Midcap up by 0.4%
Indices recovered a little as investors cover their shorts and some value emerged during the end of the day. FIIs continued to stay net sellers and are expected to avoid any fresh buying before elections.
Wednesday – Sensex up by 0.2%, Nifty up by 0.4%, Midcap up by 0.6%
Markets stayed beaten down with no fresh buying seen across most of the counters. Short covering led to the up movement in some of the indices stocks.
Thursday – Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.3%
Market inched towards its week high as FIIs turned net buyers. Bargain hunting is leading to small gains in the indices as Indian markets continues to practice caution like other emerging markets ahead of US non-farm payroll data.
Friday – Sensex up by 0.3%, Nifty up by 0.4%, Midcap up by 0.7%
Markets ended the day at its week high as all emerging markets took cue from small US rally previous day. US stocks rallied ahead of non-farm payrolls data as unemployment benefit applications declined which is as indications of improving labour market and US recovery.
FIIs are already closing out positions in India and are avoiding fresh positions till elections. They have cut their positions worth $340mn since US Fed decided to cut its stimulus package further by $10bn on Jan 29.
Indian markets are expected to be “source of fund” for FIIs in coming months as they put their money in other markets where current environment is more congenial.
Sensex and Nifty ended this week with losses of 0.7% and 0.4% respectively while CNX Midcap fell 0.8%.
Monday – Sensex down by 1.5%, Nifty down by 1.4%, Midcap down by 1.1%
Markets continued their weak performance from previous week with Sensex falling more than 300 points as China manufacturing slowdown coupled with US Fed’s cut in stimulus spending sent caution among the foreign investors across the globe.
Tuesday - Sensex and Nifty flat, Midcap up by 0.4%
Indices recovered a little as investors cover their shorts and some value emerged during the end of the day. FIIs continued to stay net sellers and are expected to avoid any fresh buying before elections.
Wednesday – Sensex up by 0.2%, Nifty up by 0.4%, Midcap up by 0.6%
Markets stayed beaten down with no fresh buying seen across most of the counters. Short covering led to the up movement in some of the indices stocks.
Thursday – Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.3%
Market inched towards its week high as FIIs turned net buyers. Bargain hunting is leading to small gains in the indices as Indian markets continues to practice caution like other emerging markets ahead of US non-farm payroll data.
Friday – Sensex up by 0.3%, Nifty up by 0.4%, Midcap up by 0.7%
Markets ended the day at its week high as all emerging markets took cue from small US rally previous day. US stocks rallied ahead of non-farm payrolls data as unemployment benefit applications declined which is as indications of improving labour market and US recovery.
Sunday, February 2, 2014
Weekly Market Commentary - Jan 27, 2014 - Jan 31, 2014
RBI governor threw in a surprise again this week. He maintained the RBI’s stance of treating inflation as its enemy no.1 while increasing the repo rate to 8%. Street was expecting no change in interest rates, some even calling for a cut now with food inflation especially vegetable inflation coming down from recent highs. Last week Urijit Patel committee made a recommendation to RBI to replace WPI by CPI as inflation benchmark for calibrating further policy actions. It is too early to say whether RBI has indeed taken up these recommendations. If that is the case, we’ll see more rate hikes in near future to contain CPI inflation and get it under RBI’s comfort zone.
Sensex and Nifty ended this week with losses of 2.9% and 2.8% respectively while CNX Midcap fell 1.6%.
Monday – Sensex down by 2.0%, Nifty down by 2.1%, Midcap down by 2.9%
Markets tumbled as investors pull out money across emerging markets before Fed tapering announcement. Fed is expected to make another cut in stimulus in Ben Bernanke’s last meeting as Fed chairman. Also, weak PMI data from China last week coupled with Argentina abandoning support of its currency peso on the open market, which led to its 15% slide, affected the investor sentiment.
Tuesday - Sensex down by 0.1%, Nifty down by 0.2%, Midcap down by 0.1%
After an onslaught on previous day, market’s attempts to recover, on the back of short coverings, was cut short by RBI’s decision to hike the repo rate by 25bps to 8%. RBI governor Raghuram Rajan defended his actions by claiming that growth cannot be had unless we have inflation totally under control. He pointed out that although CPI inflation excluding food and fuel has remained flat, WPI inflation excluding food and fuel has risen prompting a rate hike from RBI.
Wednesday – Sensex down by 0.2%, Nifty down by 0.1%, Midcap up by 0.5%
Investors stayed on the sidelines as Fed ends its two-day meeting on Wednesday with most economists expecting a further stimulus cut as US recovery shows signs of traction. The stimulus has led to FIIs pouring $20bn in India in 2013. Though Indian govt and central bank maintains that they are prepared to meet any challenge thrown in by Fed tapering, it would be highly likely that any tapering announcement will negatively affect all emerging markets including India.
Thursday – Sensex down by 0.7%, Nifty down by 0.8%, Midcap down by 1.4%
And Fed did it again. Fed tapers another $10bn, signaling confidence that the US economy can stand on its own. This move had an expected negative impact on all emerging markets. Fed has indicated that it will keep on cutting its stimulus as recovery gains strength. Fed bond purchases now stands at $65bn a month.
Friday – Sensex up by 0.1%, Nifty up by 0.3%, Midcap up by 2.3%
Markets ended flat to slightly positive as investors recover from actions of Indian and US central banks. Indian markets closed January with a monthly loss of 3%, worst since Aug 2013.
Sensex and Nifty ended this week with losses of 2.9% and 2.8% respectively while CNX Midcap fell 1.6%.
Monday – Sensex down by 2.0%, Nifty down by 2.1%, Midcap down by 2.9%
Markets tumbled as investors pull out money across emerging markets before Fed tapering announcement. Fed is expected to make another cut in stimulus in Ben Bernanke’s last meeting as Fed chairman. Also, weak PMI data from China last week coupled with Argentina abandoning support of its currency peso on the open market, which led to its 15% slide, affected the investor sentiment.
Tuesday - Sensex down by 0.1%, Nifty down by 0.2%, Midcap down by 0.1%
After an onslaught on previous day, market’s attempts to recover, on the back of short coverings, was cut short by RBI’s decision to hike the repo rate by 25bps to 8%. RBI governor Raghuram Rajan defended his actions by claiming that growth cannot be had unless we have inflation totally under control. He pointed out that although CPI inflation excluding food and fuel has remained flat, WPI inflation excluding food and fuel has risen prompting a rate hike from RBI.
Wednesday – Sensex down by 0.2%, Nifty down by 0.1%, Midcap up by 0.5%
Investors stayed on the sidelines as Fed ends its two-day meeting on Wednesday with most economists expecting a further stimulus cut as US recovery shows signs of traction. The stimulus has led to FIIs pouring $20bn in India in 2013. Though Indian govt and central bank maintains that they are prepared to meet any challenge thrown in by Fed tapering, it would be highly likely that any tapering announcement will negatively affect all emerging markets including India.
Thursday – Sensex down by 0.7%, Nifty down by 0.8%, Midcap down by 1.4%
And Fed did it again. Fed tapers another $10bn, signaling confidence that the US economy can stand on its own. This move had an expected negative impact on all emerging markets. Fed has indicated that it will keep on cutting its stimulus as recovery gains strength. Fed bond purchases now stands at $65bn a month.
Friday – Sensex up by 0.1%, Nifty up by 0.3%, Midcap up by 2.3%
Markets ended flat to slightly positive as investors recover from actions of Indian and US central banks. Indian markets closed January with a monthly loss of 3%, worst since Aug 2013.
Saturday, January 25, 2014
Weekly Market Commentary - Jan 20, 2014 - Jan 24, 2014
Investors were a cheerful lot for most of this week. So far, result season has been good, has been largely without any negative surprises. Dollar earning sectors seems to have picked up steam on hope of strengthening US recovery. Falling inflation levels have also brought back the rate cut clamour. Everything was good and normal until two important events happened. One, Urijit Patel tabled a report on strengthening monetary framework, which among other things recommended changing the inflation targeting benchmark to CPI from WPI. If this happens, it may lead to higher interest rates in near to medium term and may put a dampener on India’s growth plans (for short term). Two, RBI governor made statements to the effect of inflation fighting would be the main focus of RBI, which dashed hopes of rate cut in RBI review meeting on Jan 28.
Sensex and Nifty ended this week with small gains of 0.3% and 0.1% respectively while CNX Midcap fell 0.9%.
Monday – Sensex up by 0.7%, Nifty up by 0.7%, Midcap up by 1.0%
Market’s mood was cheerful as index heavyweights Reliance Industries and Wipro managed to beat consensus and post healthy results. Reliance fared better than street forecasts as its refinery earned $7.6 per barrel of crude refined, significantly better than Singapore GRMs (Gross Refining Margin) of $4.3. Shares went up initially but lost all its gains in the latter half of the day. Wipro ended the day up as its results showed that business continued to improve as signs of turnaround and margin expansions are growing.
Tuesday - Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.2%
Market continued its uptrend amid some profit booking seen on the bourses. Govt decision to sell stake in Hindustan Zinc to cover some of its fiscal deficit also helped to improve the sentiment.
Wednesday – Sensex up by 0.4%, Nifty up by 0.4%, Midcap up by 0.1%
Indices spurted to all time highs in latter half of the day as investors flocked to buy pharma, metal and banking stocks on expectations of strong corporate earnings and rate cut by the Reserve Bank.
Thursday – Sensex up by 0.2%, Nifty up by 0.1%, Midcap down by 0.4%
Markets continued their rally and closed at another record high as industry bellwether, L&T, which is widely considered the barometer of Indian economy, rose as much as 4% after reporting a 22% jump in standalone net profit for 3Q.
Friday – Sensex down by 1.1%, Nifty down by 1.2%, Midcap down by 1.8%
Indices snapped on last day of the week as RBI governor Raghuram Rajan calling inflation a “destructive disease” dashed hopes of investors expecting a rate cut in the review meeting. These comments bring RBI’s priorities to tackle inflation first before focusing on growth to the fore again. In another event, Ranbaxy’s stocks crashed 20% after US FSA banned the firm from shipping drugs from its Toansa plant. Weak global trend following poor economic data in the US and China dampened the market sentiment.
Sensex and Nifty ended this week with small gains of 0.3% and 0.1% respectively while CNX Midcap fell 0.9%.
Monday – Sensex up by 0.7%, Nifty up by 0.7%, Midcap up by 1.0%
Market’s mood was cheerful as index heavyweights Reliance Industries and Wipro managed to beat consensus and post healthy results. Reliance fared better than street forecasts as its refinery earned $7.6 per barrel of crude refined, significantly better than Singapore GRMs (Gross Refining Margin) of $4.3. Shares went up initially but lost all its gains in the latter half of the day. Wipro ended the day up as its results showed that business continued to improve as signs of turnaround and margin expansions are growing.
Tuesday - Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.2%
Market continued its uptrend amid some profit booking seen on the bourses. Govt decision to sell stake in Hindustan Zinc to cover some of its fiscal deficit also helped to improve the sentiment.
Wednesday – Sensex up by 0.4%, Nifty up by 0.4%, Midcap up by 0.1%
Indices spurted to all time highs in latter half of the day as investors flocked to buy pharma, metal and banking stocks on expectations of strong corporate earnings and rate cut by the Reserve Bank.
Thursday – Sensex up by 0.2%, Nifty up by 0.1%, Midcap down by 0.4%
Markets continued their rally and closed at another record high as industry bellwether, L&T, which is widely considered the barometer of Indian economy, rose as much as 4% after reporting a 22% jump in standalone net profit for 3Q.
Friday – Sensex down by 1.1%, Nifty down by 1.2%, Midcap down by 1.8%
Indices snapped on last day of the week as RBI governor Raghuram Rajan calling inflation a “destructive disease” dashed hopes of investors expecting a rate cut in the review meeting. These comments bring RBI’s priorities to tackle inflation first before focusing on growth to the fore again. In another event, Ranbaxy’s stocks crashed 20% after US FSA banned the firm from shipping drugs from its Toansa plant. Weak global trend following poor economic data in the US and China dampened the market sentiment.
Sunday, January 19, 2014
Weekly Market Commentary - Jan 13, 2014 - Jan 17, 2014
Low inflation numbers came as a respite to both Indian consumers and investors alike. In hindsight, the decision of RBI governor to not raise interest rates in last review meeting proved to be sound. He rightly pointed out in that meeting that RBI should avoid taking long term measures for tackling the short term problems or issues. If inflation continues to get leveled the chances of a rate cut becomes strong to revive Indian growth story. Let’s see how everything rolls out in coming days.
Sensex and Nifty gained 1.5% while CNX Midcap was down by 1.1% this week.
Monday – Sensex up by 1.8%, Nifty up by 1.6%, Midcap down by 0.2%
After a muted trading activity last week, markets saw a surge in interest in technology, energy and financial stocks. Infosys’ good results, improved dollar revenue guidance and expected positive news from other IT stocks also has raised hopes of the market. Govt’s move to notify the gas Rangarajan’s gas price formula led to improvement in energy stocks levels. In addition, weak US job data also eased the tapering concerns of investors around the globe that added to the buying momentum in the Indian markets.
Tuesday - Sensex down by 0.5%, Nifty down by 0.5%, Midcap flat
Markets pared gains it made previous day mostly because of profit booking. Lower retail inflation numbers released by the govt. on Monday evening failed to cheer up the markets as the decline was already factored in the market prices.
Wednesday – Sensex up by 1.2%, Nifty up by 1.3%, Midcap up by 0.6%
Although the retail inflation numbers were low but the fall in wholesale prices took the market by surprise. WPI increased by 6.16% far below the street estimates of 6.99%. This decline has finally set aside the speculation on rate hikes in RBI review meeting at the end of this month. Sensex touched its five-week high on the back of rise in interest rate sensitive sectors such as auto, banks and financials.
Thursday – Sensex and Nifty flat, Midcap down by 0.4%
Markets continue to trade range bound as increased hopes of no rates hikes in RBI meeting was countered by profit booking. The news that Reliance Jio is planning to bid for spectrum licenses also led to huge selling across the telecom sector stocks as re-entry of RIL may bring back the price wars and cut into profitability of the sector.
Friday – Sensex down by 0.9%, Nifty down by 0.9%, Midcap down by 1.1%
Markets slide as TCS posted lower margins and guided to no recovery until the general elections are over in the country and things stabilizes a bit. Profit booking also led to selling across all counters.
Sensex and Nifty gained 1.5% while CNX Midcap was down by 1.1% this week.
Monday – Sensex up by 1.8%, Nifty up by 1.6%, Midcap down by 0.2%
After a muted trading activity last week, markets saw a surge in interest in technology, energy and financial stocks. Infosys’ good results, improved dollar revenue guidance and expected positive news from other IT stocks also has raised hopes of the market. Govt’s move to notify the gas Rangarajan’s gas price formula led to improvement in energy stocks levels. In addition, weak US job data also eased the tapering concerns of investors around the globe that added to the buying momentum in the Indian markets.
Tuesday - Sensex down by 0.5%, Nifty down by 0.5%, Midcap flat
Markets pared gains it made previous day mostly because of profit booking. Lower retail inflation numbers released by the govt. on Monday evening failed to cheer up the markets as the decline was already factored in the market prices.
Wednesday – Sensex up by 1.2%, Nifty up by 1.3%, Midcap up by 0.6%
Although the retail inflation numbers were low but the fall in wholesale prices took the market by surprise. WPI increased by 6.16% far below the street estimates of 6.99%. This decline has finally set aside the speculation on rate hikes in RBI review meeting at the end of this month. Sensex touched its five-week high on the back of rise in interest rate sensitive sectors such as auto, banks and financials.
Thursday – Sensex and Nifty flat, Midcap down by 0.4%
Markets continue to trade range bound as increased hopes of no rates hikes in RBI meeting was countered by profit booking. The news that Reliance Jio is planning to bid for spectrum licenses also led to huge selling across the telecom sector stocks as re-entry of RIL may bring back the price wars and cut into profitability of the sector.
Friday – Sensex down by 0.9%, Nifty down by 0.9%, Midcap down by 1.1%
Markets slide as TCS posted lower margins and guided to no recovery until the general elections are over in the country and things stabilizes a bit. Profit booking also led to selling across all counters.
Sunday, January 12, 2014
Weekly Market Commentary - Jan 6, 2014 - Jan 10, 2014
Trading activity remained muted for most of the week only to be picked up at the end of the week with starting of 3Q earnings season. Apart from ongoing earnings season, markets will also see release of CPI and WPI data next week, on which RBI’s interest rate policy hinges. Govt is also expected to come up with stake sales of IOC and Engineers India this month and BHEL, HAL in next to meet its disinvestment target of Rs 40K crores.
Sensex fell by 0.4%, Nifty lost 0.6% while CNX Midcap was down by 1.9% this week.
Monday – Sensex down by 0.3%, Nifty down by 0.3%, Midcap up by 0.3%
Market activity remains muted in absence of any catalysts. Most Asian stocks traded lower, as an index of China's services industry declined last month, and did not rise even after Fed reiterated its stand of accommodative monetary policy.
Tuesday - Sensex down by 0.5%, Nifty down by 0.5%, Midcap down by 0.9%
Investors seems to sit out on sidelines as they wait for minutes of Fed meeting and starting of earnings season on Friday which street expects to be weak.
Wednesday – Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.5%
Indian markets recorded their first gain of 2014 as most Asian stocks traded higher after the IMF said it would raise its estimate for global economic growth. Also, the recovery seen in US as their trade deficit narrows augurs well for Indian export stories.
Thursday – Sensex down by 0.1%, Nifty down by 0.1%, Midcap down by 0.8%
Markets closed lower on a day ahead of 3Q earnings season commencement. Street expects results to be weak though slightly better than previous quarter.
Friday – Sensex up by 0.2%, Nifty up by 0.1%, Midcap down by 1.0%
Markets cheered Infosys’ better than expected results and set the IT stocks zooming. The company also raised its FY14 dollar revenue guidance as it sees improvement in US business environment and confidence.
Sensex fell by 0.4%, Nifty lost 0.6% while CNX Midcap was down by 1.9% this week.
Monday – Sensex down by 0.3%, Nifty down by 0.3%, Midcap up by 0.3%
Market activity remains muted in absence of any catalysts. Most Asian stocks traded lower, as an index of China's services industry declined last month, and did not rise even after Fed reiterated its stand of accommodative monetary policy.
Tuesday - Sensex down by 0.5%, Nifty down by 0.5%, Midcap down by 0.9%
Investors seems to sit out on sidelines as they wait for minutes of Fed meeting and starting of earnings season on Friday which street expects to be weak.
Wednesday – Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.5%
Indian markets recorded their first gain of 2014 as most Asian stocks traded higher after the IMF said it would raise its estimate for global economic growth. Also, the recovery seen in US as their trade deficit narrows augurs well for Indian export stories.
Thursday – Sensex down by 0.1%, Nifty down by 0.1%, Midcap down by 0.8%
Markets closed lower on a day ahead of 3Q earnings season commencement. Street expects results to be weak though slightly better than previous quarter.
Friday – Sensex up by 0.2%, Nifty up by 0.1%, Midcap down by 1.0%
Markets cheered Infosys’ better than expected results and set the IT stocks zooming. The company also raised its FY14 dollar revenue guidance as it sees improvement in US business environment and confidence.
Sunday, January 5, 2014
Weekly Market Commentary - Dec 30, 2013 - Jan 3, 2014
First week of 2014 was, to say the least, unexciting. Many investors decided to stay on the sidelines as market lacked any fresh triggers. A speech from our PM promising that his govt. would continue to push reforms, create a favourable FDI climate and will work to generate more employment left most people yawning.
Sensex and Nifty lost 1.6% each while CNX Midcap was down by 0.9% this week.
Monday – Sensex down by 0.2%, Nifty down by 0.4%, Midcap down by 0.3%
The markets were lackluster as investors stayed away because of ongoing holiday season.
Tuesday - Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 0.8%
Small gains seen in the index level as cement and oil and gas stocks registered positive movement owing to the bets on turnaround in Indian economy in 2014.
Wednesday – Sensex down by 0.1%, Nifty flat, Midcap up by 0.5%
Sensex recorded a drop on first trading day of 2014. Investors were cautious as govt. data released yesterday showed India's fiscal deficit is now 94% of the annual target. Also, lower growth of 1.7% in index of eight core industries vs. 5.8% previous year added to the bearish sentiment.
Thursday – Sensex down by 1.2%, Nifty down by 1.3%, Midcap down by 2.1%
Strong opening during the early day was hit by bout of profit booking in the second half of the trading day. Weak manufacturing data from China also kept the global sentiment low.
Friday – Sensex down by 0.2%, Nifty down by 0.2%, Midcap up by 0.3%
Markets continued their cautious stance on Friday as low activity in the market with some value buying and rise in tech stocks countering the profit booking and keeping the index range-bound.
Sensex and Nifty lost 1.6% each while CNX Midcap was down by 0.9% this week.
Monday – Sensex down by 0.2%, Nifty down by 0.4%, Midcap down by 0.3%
The markets were lackluster as investors stayed away because of ongoing holiday season.
Tuesday - Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 0.8%
Small gains seen in the index level as cement and oil and gas stocks registered positive movement owing to the bets on turnaround in Indian economy in 2014.
Wednesday – Sensex down by 0.1%, Nifty flat, Midcap up by 0.5%
Sensex recorded a drop on first trading day of 2014. Investors were cautious as govt. data released yesterday showed India's fiscal deficit is now 94% of the annual target. Also, lower growth of 1.7% in index of eight core industries vs. 5.8% previous year added to the bearish sentiment.
Thursday – Sensex down by 1.2%, Nifty down by 1.3%, Midcap down by 2.1%
Strong opening during the early day was hit by bout of profit booking in the second half of the trading day. Weak manufacturing data from China also kept the global sentiment low.
Friday – Sensex down by 0.2%, Nifty down by 0.2%, Midcap up by 0.3%
Markets continued their cautious stance on Friday as low activity in the market with some value buying and rise in tech stocks countering the profit booking and keeping the index range-bound.
Sunday, December 29, 2013
Weekly Market Commentary - Dec 23 - Dec 27, 2013
2013 is coming to close. Markets registered a gain on last week of this year as it did in the first week of this year. Highlights of this year were all the noise around QE tapering from US Fed that led to a roller coaster ride for our currency and stock markets. Although, it all turned out to be a whimper but it did give a wakeup call to Indian govt. to get its act together. Add to all this mayhem the cancellation of POSCO and ArcellorMittal plans to setup plants in India, scams, inflation, gang rapes, policy paralysis, rating downgrade warnings and uncertainty around elections. So, there was the ground, seven layers of shit and then us.
Nonetheless, our markets recovered their old glory as Sensex made new highs. Market rejoiced as veterans returned to take care of their broken legacies; stalwarts were appointed to guide our way through fiscal mess, save rupee and general public from scourges of inflation; and anti-corruption wave made way for more business friendly governments and ushered into a new era as a one year old party made people realize that their voices are not unheard.
As many of the above problems have remained unsolved, hope has emerged as country prepares to elect its new leadership in 2014. Let us hope for an even better and interesting 2014.
I wish a very happy and prosperous new year to my readers.
Sensex gained 0.5%; Nifty gained 0.6% while CNX Midcap was up by 2.5% this week.
Monday – Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 1.1%
Upward movement during the first half of the trading day was capped by late selling seen in Infosys, which saw exit of another key management personnel, HDFC, which saw some profit booking after RBI said inflation fighting is still their topmost priority. Market momentum stayed bullish as global indices firmed up though some volatility generally increases near F&O expiry date.
Tuesday - Sensex down by 0.3%, Nifty down by 0.3%, Midcap up by 0.5%
Markets remained choppy as investors stayed cautious ahead of F&O expiry on Dec 26. Global markets also remained range-bound due to light trading activity ahead of holiday season.
Wednesday – Markets closed on occasion of Christmas
Thursday – Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.2%
Trading activity was mute on the F&O expiry day. Axis Bank rallied surged after the Cabinet Committee on Economic Affairs (CCEA) approved proposal to increase foreign investment in the bank from 49% to 62%.
Friday – Sensex up by 0.6%, Nifty up by 0.6%, Midcap up by 0.7%
Market closed the week higher led by gains in export-oriented sectors such as IT and Pharma as US data showed improved recovery in employment situation. Banks and FMCG also gained as street expects inflation data to be lower in January and RBI to maintain status quo on rates.
Nonetheless, our markets recovered their old glory as Sensex made new highs. Market rejoiced as veterans returned to take care of their broken legacies; stalwarts were appointed to guide our way through fiscal mess, save rupee and general public from scourges of inflation; and anti-corruption wave made way for more business friendly governments and ushered into a new era as a one year old party made people realize that their voices are not unheard.
As many of the above problems have remained unsolved, hope has emerged as country prepares to elect its new leadership in 2014. Let us hope for an even better and interesting 2014.
I wish a very happy and prosperous new year to my readers.
Sensex gained 0.5%; Nifty gained 0.6% while CNX Midcap was up by 2.5% this week.
Monday – Sensex up by 0.1%, Nifty up by 0.2%, Midcap up by 1.1%
Upward movement during the first half of the trading day was capped by late selling seen in Infosys, which saw exit of another key management personnel, HDFC, which saw some profit booking after RBI said inflation fighting is still their topmost priority. Market momentum stayed bullish as global indices firmed up though some volatility generally increases near F&O expiry date.
Tuesday - Sensex down by 0.3%, Nifty down by 0.3%, Midcap up by 0.5%
Markets remained choppy as investors stayed cautious ahead of F&O expiry on Dec 26. Global markets also remained range-bound due to light trading activity ahead of holiday season.
Wednesday – Markets closed on occasion of Christmas
Thursday – Sensex up by 0.2%, Nifty up by 0.2%, Midcap up by 0.2%
Trading activity was mute on the F&O expiry day. Axis Bank rallied surged after the Cabinet Committee on Economic Affairs (CCEA) approved proposal to increase foreign investment in the bank from 49% to 62%.
Friday – Sensex up by 0.6%, Nifty up by 0.6%, Midcap up by 0.7%
Market closed the week higher led by gains in export-oriented sectors such as IT and Pharma as US data showed improved recovery in employment situation. Banks and FMCG also gained as street expects inflation data to be lower in January and RBI to maintain status quo on rates.
Sunday, December 22, 2013
Weekly Market Commentary - Dec 16 - Dec 20, 2013
Quite a week for Indian markets. With Fed’s tapering decision out of the way and uncertainty related to Indian govt’s stand on KG D6 gas price revision cleared, investors and business got another major sentiment boost from RBI governor who decided not to raise rates even in the midst of rising inflation. Therefore, what resulted is Sensex regaining 21,000 level while focus now shifted to food inflation data, which, if strengthened, may warrant a rate hike from RBI.
Sensex gained 1.8%; Nifty gained 1.7% while CNX Midcap was up by 3.1% this week.
Monday – Sensex down by 0.3%, Nifty down by 0.2%, Midcap up by 0.4%
Sensex failed to gain ground as impending rate hike concerns, post high inflation numbers, have kept the street nervous. Street is widely expecting a repo rate hike of 25bps to 8.00% in Dec 18 policy review. Recent govt data shows that costly vegetables, particularly potato and onion has pushed the November WPI to 7.52% from 7% previous month while CPI has jumped to 11.24% warranting inflation controlling measures from central bank.
Tuesday - Sensex down by 0.2%, Nifty down by 0.3%, Midcap down by 0.1%
Markets traded in the narrow range as investors stayed cautious ahead of RBI policy review meet on Wednesday.
Wednesday – Sensex up by 1.2%, Nifty up by 1.3%, Midcap up by 1.5%
RBI sprung a surprise as it decided to maintain the status quo and left the rates unchanged. Investors’ sentiments turned bullish as RBI governor Raghuram Rajan indicated lowering of inflation in near term due to falling vegetable prices but promised to act if inflation did not subside as expected.
Thursday – Sensex down by 0.7%, Nifty down by 0.8%, Midcap down by 0.4%
There was some selloff as Fed announced $10bn of tapering every month. Neither the selloff nor the tapering decision came as a surprise. Federal Open Market Committee (FOMC) expects that with appropriate policy accommodation, economic growth will pick up from its recent pace and the unemployment rate will gradually decline.
Friday – Sensex up by 1.8%, Nifty up by 1.7%, Midcap up by 1.7%
Markets went up as Fed’s QE tapering decision is finally out of its way and as expected did not have major impact on either stocks or currency. Sensex got a major boost as govt. finally cleared Reliance Industries’ demand of higher gas prices while asking them to deposit a guarantee equivalent to any incremental revenue. With this decision, govt has cleared lot of uncertainties in the oil and gas industry and made easier for foreign companies to invest in India.
Sensex gained 1.8%; Nifty gained 1.7% while CNX Midcap was up by 3.1% this week.
Monday – Sensex down by 0.3%, Nifty down by 0.2%, Midcap up by 0.4%
Sensex failed to gain ground as impending rate hike concerns, post high inflation numbers, have kept the street nervous. Street is widely expecting a repo rate hike of 25bps to 8.00% in Dec 18 policy review. Recent govt data shows that costly vegetables, particularly potato and onion has pushed the November WPI to 7.52% from 7% previous month while CPI has jumped to 11.24% warranting inflation controlling measures from central bank.
Tuesday - Sensex down by 0.2%, Nifty down by 0.3%, Midcap down by 0.1%
Markets traded in the narrow range as investors stayed cautious ahead of RBI policy review meet on Wednesday.
Wednesday – Sensex up by 1.2%, Nifty up by 1.3%, Midcap up by 1.5%
RBI sprung a surprise as it decided to maintain the status quo and left the rates unchanged. Investors’ sentiments turned bullish as RBI governor Raghuram Rajan indicated lowering of inflation in near term due to falling vegetable prices but promised to act if inflation did not subside as expected.
Thursday – Sensex down by 0.7%, Nifty down by 0.8%, Midcap down by 0.4%
There was some selloff as Fed announced $10bn of tapering every month. Neither the selloff nor the tapering decision came as a surprise. Federal Open Market Committee (FOMC) expects that with appropriate policy accommodation, economic growth will pick up from its recent pace and the unemployment rate will gradually decline.
Friday – Sensex up by 1.8%, Nifty up by 1.7%, Midcap up by 1.7%
Markets went up as Fed’s QE tapering decision is finally out of its way and as expected did not have major impact on either stocks or currency. Sensex got a major boost as govt. finally cleared Reliance Industries’ demand of higher gas prices while asking them to deposit a guarantee equivalent to any incremental revenue. With this decision, govt has cleared lot of uncertainties in the oil and gas industry and made easier for foreign companies to invest in India.
Sunday, December 15, 2013
Weekly Market Commentary - Dec 9 - Dec 13, 2013
As political events have turned very exciting in the country, it is the boring economics that made investors realize that it cannot remain sidelined for long. This week as investors’ sentiment over exit polls reached a climax in the state election results, markets touch their all time high on first trading session of the week. However, as the reality of the day set in, inflation blew out all the air out of the election bubble.
Sensex fell 1.3%; Nifty lost 1.5% while CNX Midcap was down by 2.1% this week.
Monday – Sensex up by 1.6%, Nifty up by 1.7%, Midcap up by 1.0%
Sensex touched a new high as market momentum built up by the exit polls continued. The main opposition and business friendly party BJP win a clear mandate in three out of four state elections strengthening its electoral prospects and chances of forming a government in the centre in May.
Tuesday - Sensex down by 0.3%, Nifty down by 0.5%, Midcap down by 0.5%
Markets saw some profit booking while new draft regulation from CERC led a major blow to NTPC earnings. NTPC went down by 11% as under new guidelines that are going to implement from April 2014, has kept RoE as the method of calculating incentives but has done some tightening on taxation and expenses front making it difficult for players like NTPC and PGCIL to maintain their current profitability.
Wednesday – Sensex down by 0.4%, Nifty down by 0.4%, Midcap down by 0.6%
Markets opened lower as weak global sentiment weighed heavily on domestic trading, but good news on CAD front led indices recoup some of their losses. India managed to lower its current account deficit as exports grew by 5.86% in November while imports dip to their two and a half year low following steep decline in gold imports. India’s CAD now stands at $9.22bn as against $17.2bn previous month.
Thursday – Sensex down by 1.2%, Nifty down by 1.1%, Midcap down by 0.6%
Markets were under selling pressure ahead of release of CPI and IIP numbers. Street estimates IIP numbers are going to signal contraction in the economy while CPI numbers will stick in 10% range prompting RBI governor to raise rates.
Friday – Sensex down by 1.0%, Nifty down by 1.1%, Midcap down by 1.4%
Worse than expected CPI numbers took its toll on the Indian markets when it recorded its biggest weekly fall. CPI for November came at 11.24% vs. street estimates of 10% range raising the fear of increase in interest rates. Street is now estimating a 25bps hike in interest rates on Dec 18. The market has pared all gains made on Monday after state elections results announcement.
Sensex fell 1.3%; Nifty lost 1.5% while CNX Midcap was down by 2.1% this week.
Monday – Sensex up by 1.6%, Nifty up by 1.7%, Midcap up by 1.0%
Sensex touched a new high as market momentum built up by the exit polls continued. The main opposition and business friendly party BJP win a clear mandate in three out of four state elections strengthening its electoral prospects and chances of forming a government in the centre in May.
Tuesday - Sensex down by 0.3%, Nifty down by 0.5%, Midcap down by 0.5%
Markets saw some profit booking while new draft regulation from CERC led a major blow to NTPC earnings. NTPC went down by 11% as under new guidelines that are going to implement from April 2014, has kept RoE as the method of calculating incentives but has done some tightening on taxation and expenses front making it difficult for players like NTPC and PGCIL to maintain their current profitability.
Wednesday – Sensex down by 0.4%, Nifty down by 0.4%, Midcap down by 0.6%
Markets opened lower as weak global sentiment weighed heavily on domestic trading, but good news on CAD front led indices recoup some of their losses. India managed to lower its current account deficit as exports grew by 5.86% in November while imports dip to their two and a half year low following steep decline in gold imports. India’s CAD now stands at $9.22bn as against $17.2bn previous month.
Thursday – Sensex down by 1.2%, Nifty down by 1.1%, Midcap down by 0.6%
Markets were under selling pressure ahead of release of CPI and IIP numbers. Street estimates IIP numbers are going to signal contraction in the economy while CPI numbers will stick in 10% range prompting RBI governor to raise rates.
Friday – Sensex down by 1.0%, Nifty down by 1.1%, Midcap down by 1.4%
Worse than expected CPI numbers took its toll on the Indian markets when it recorded its biggest weekly fall. CPI for November came at 11.24% vs. street estimates of 10% range raising the fear of increase in interest rates. Street is now estimating a 25bps hike in interest rates on Dec 18. The market has pared all gains made on Monday after state elections results announcement.
Sunday, December 8, 2013
Weekly Market Commentary - Dec 2 - Dec 6, 2013
Indian investors are a happy lot this week. Though tapering sword is still hanging over bullish investor sentiments, it seems investors have lot to rejoice over the coming days. Not just exit polls have sounded a victory for their favorite PM candidate, but it has also forced the govt. to increase the pace of their reforms as a last ditch effort to thwart the current anti-incumbency wave in the country. Govt. is back to its disinvestment ways to fill the deficit gap and is likely to make some reform announcements benefitting power and sugar industries.
Sensex gained 1.0%; Nifty gained 1.4% while CNX Midcap was up by 1.1% this week.
Monday – Sensex up by 0.5%, Nifty up by 0.7%, Midcap up by 0.7%
Markets cheered the 2QFY14 GDP growth of 4.8% vs. 4.4% in previous quarter, according to data released by govt. The growth numbers were in-line with street estimates. Also, HSBC PMI index recorded improvement in manufacturing activity for the first time since July. The Index for the manufacturing industry climbed to 51.3 in November from 49.6 in previous month.
Tuesday - Sensex down by 0.2%, Nifty down by 0.3%, Midcap flat
Markets ended up lower as investors resorted to profit booking and cautiousness ahead of Fed’s job report expected at the end of the week. Any improvement in the job recovery may lead to decision in favour of tapering of QE by Federal Reserve. Investors also stayed cautious as India’s capital, New Delhi prepares for polls next day. Even a good announcement from RBI was unable to lift the mood of the market. RBI announced that India’s current account deficit (CAD) narrowed sharply to $5.2bn or 1.2% of GDP in 2Q, from $21bn or 5% last year.
Wednesday – Sensex down by 0.7%, Nifty down by 0.7%, Midcap down by 1.0%
Market sentiments were weak as rise in crude prices added to inflationary concerns. Investors raised concerns that this may lead RBI to raise rates again raising the cost of doing business in the country.
Thursday – Sensex up by 1.2%, Nifty up by 1.3%, Midcap up by 0.8%
Markets went up and regained 21,000 levels as exit polls showed BJP coming to power in at least 4 out of 5 states that had elections recently. BJP is widely viewed as business friendly party among the host of other parties contesting the elections. Any success in state elections will be a testimony of BJP Prime Ministerial candidate Narendra Modi’s popularity and acceptance.
Friday – Sensex up by 0.2%, Nifty up by 0.3%, Midcap up by 0.5%
Exit polls results kept markets up and gave boost to the idea that congress might try to get more reform measures passed in the run up to the main elections in May 2014.
Sensex gained 1.0%; Nifty gained 1.4% while CNX Midcap was up by 1.1% this week.
Monday – Sensex up by 0.5%, Nifty up by 0.7%, Midcap up by 0.7%
Markets cheered the 2QFY14 GDP growth of 4.8% vs. 4.4% in previous quarter, according to data released by govt. The growth numbers were in-line with street estimates. Also, HSBC PMI index recorded improvement in manufacturing activity for the first time since July. The Index for the manufacturing industry climbed to 51.3 in November from 49.6 in previous month.
Tuesday - Sensex down by 0.2%, Nifty down by 0.3%, Midcap flat
Markets ended up lower as investors resorted to profit booking and cautiousness ahead of Fed’s job report expected at the end of the week. Any improvement in the job recovery may lead to decision in favour of tapering of QE by Federal Reserve. Investors also stayed cautious as India’s capital, New Delhi prepares for polls next day. Even a good announcement from RBI was unable to lift the mood of the market. RBI announced that India’s current account deficit (CAD) narrowed sharply to $5.2bn or 1.2% of GDP in 2Q, from $21bn or 5% last year.
Wednesday – Sensex down by 0.7%, Nifty down by 0.7%, Midcap down by 1.0%
Market sentiments were weak as rise in crude prices added to inflationary concerns. Investors raised concerns that this may lead RBI to raise rates again raising the cost of doing business in the country.
Thursday – Sensex up by 1.2%, Nifty up by 1.3%, Midcap up by 0.8%
Markets went up and regained 21,000 levels as exit polls showed BJP coming to power in at least 4 out of 5 states that had elections recently. BJP is widely viewed as business friendly party among the host of other parties contesting the elections. Any success in state elections will be a testimony of BJP Prime Ministerial candidate Narendra Modi’s popularity and acceptance.
Friday – Sensex up by 0.2%, Nifty up by 0.3%, Midcap up by 0.5%
Exit polls results kept markets up and gave boost to the idea that congress might try to get more reform measures passed in the run up to the main elections in May 2014.
Sunday, December 1, 2013
Weekly Market Commentary - Nov 25 - Nov 29, 2013
All eyes on Delhi election results on December 8th. These results may act as a precursor to what is in store for Indian investors. As DII turned buyers during the end of November, it seems that street is expecting a rally in December, which may only happen if BJP wins.
Sensex gained 2.8%; Nifty gained 3.0% while CNX Midcap was up by 3.1% this week.
Monday – Sensex up by 1.9%, Nifty up by 2.0%, Midcap up by 1.5%
Indian markets went up in tandem with global markets as Iran nuclear deal led to easing of crude prices. The deal is good for India in more than one way. It helps in removing the hindrances from importing crude from Iran, and lower prices benefits in reduced inflation expectations and deficits.
Tuesday - Sensex down by 0.9%, Nifty down by 0.9%, Midcap down by 0.5%
Markets gave back some of gains it made yesterday as crude prices rebounded and investors booked profits ahead of GDP data release.
Wednesday – Sensex, Nifty and Midcap flat
Markets ended flat as November derivative expiry arrives and investors stay cautious ahead of GDP and fiscal data release expected on Friday.
Thursday – Sensex up by 0.6%, Nifty up by 0.6%, Midcap up by 0.9%
Markets went up on the day of derivative expiry as traders cover their shorts and domestic institutional investors (DIIs) turned net buyers for first time in November, in addition to FIIs who continued stake building in Indian markets.
Friday – Sensex up by 1.3%, Nifty up by 1.4%, Midcap up by 1.1%
Markets showed optimism ahead of 2Q GDP data release expected during after-market hours. Consensus on the street is 4.6% of GDP growth. Anything below that will be indicator of adverse impact of recent repo rate hikes initiated by Governor Raghuram Rajan.
Sensex gained 2.8%; Nifty gained 3.0% while CNX Midcap was up by 3.1% this week.
Monday – Sensex up by 1.9%, Nifty up by 2.0%, Midcap up by 1.5%
Indian markets went up in tandem with global markets as Iran nuclear deal led to easing of crude prices. The deal is good for India in more than one way. It helps in removing the hindrances from importing crude from Iran, and lower prices benefits in reduced inflation expectations and deficits.
Tuesday - Sensex down by 0.9%, Nifty down by 0.9%, Midcap down by 0.5%
Markets gave back some of gains it made yesterday as crude prices rebounded and investors booked profits ahead of GDP data release.
Wednesday – Sensex, Nifty and Midcap flat
Markets ended flat as November derivative expiry arrives and investors stay cautious ahead of GDP and fiscal data release expected on Friday.
Thursday – Sensex up by 0.6%, Nifty up by 0.6%, Midcap up by 0.9%
Markets went up on the day of derivative expiry as traders cover their shorts and domestic institutional investors (DIIs) turned net buyers for first time in November, in addition to FIIs who continued stake building in Indian markets.
Friday – Sensex up by 1.3%, Nifty up by 1.4%, Midcap up by 1.1%
Markets showed optimism ahead of 2Q GDP data release expected during after-market hours. Consensus on the street is 4.6% of GDP growth. Anything below that will be indicator of adverse impact of recent repo rate hikes initiated by Governor Raghuram Rajan.
Sunday, November 24, 2013
Weekly Market Commentary - Nov 18 - Nov 22, 2013
Fed’s tapering stayed the talk of the town as markets look exhausted due to lack of any domestic or global cues. The question of will they cut or will not and when continues to linger over the market’s direction.
Sensex lost 0.9%, Nifty lost 1.0% and CNX Midcap was down by 0.9% this week.
Monday – Sensex up by 2.2%, Nifty up by 2.2%, Midcap up by 1.3%
Market continued to rally after Janet Yellen new chair of Fed Reserve allayed fears over QE tapering. Also, RBI governor Rajan’s statement to have an accommodative liquidity stand strengthened the rupee and boosted the investor sentiment.
Tuesday - Sensex up by 0.2%, Nifty up by 0.2%, Midcap flat
Lack of catalysts in the domestic markets makes sure that any rally or euphoria is short lived. Markets were flat as investors stayed cautious and booked profits.
Wednesday – Sensex down by 1.2%, Nifty down by 1.3%, Midcap down by 0.6%
Sensex floundered due to lack of any domestic or global cues. Investors booked profits in banking, IT and capital goods as market sees no new investment and project been announced till the elections are concluded in May.
Thursday – Sensex down by 2.0%, Nifty down by 2.0%, Midcap down by 1.7%
Release of minutes of Federal Open Market Committee (FOMC) meet spooked the investors globally as it indicated tapering might began in next few months, if economy improves. Fed’s doublespeak is confusing the markets as previous week they indicated any tapering is still far away.
Friday – Sensex down by 0.1%, Nifty down by 0.1%, Midcap up by 0.1%
Markets continued to stay cautious as Fed’s comments on tapering confused the investors.
Sensex lost 0.9%, Nifty lost 1.0% and CNX Midcap was down by 0.9% this week.
Monday – Sensex up by 2.2%, Nifty up by 2.2%, Midcap up by 1.3%
Market continued to rally after Janet Yellen new chair of Fed Reserve allayed fears over QE tapering. Also, RBI governor Rajan’s statement to have an accommodative liquidity stand strengthened the rupee and boosted the investor sentiment.
Tuesday - Sensex up by 0.2%, Nifty up by 0.2%, Midcap flat
Lack of catalysts in the domestic markets makes sure that any rally or euphoria is short lived. Markets were flat as investors stayed cautious and booked profits.
Wednesday – Sensex down by 1.2%, Nifty down by 1.3%, Midcap down by 0.6%
Sensex floundered due to lack of any domestic or global cues. Investors booked profits in banking, IT and capital goods as market sees no new investment and project been announced till the elections are concluded in May.
Thursday – Sensex down by 2.0%, Nifty down by 2.0%, Midcap down by 1.7%
Release of minutes of Federal Open Market Committee (FOMC) meet spooked the investors globally as it indicated tapering might began in next few months, if economy improves. Fed’s doublespeak is confusing the markets as previous week they indicated any tapering is still far away.
Friday – Sensex down by 0.1%, Nifty down by 0.1%, Midcap up by 0.1%
Markets continued to stay cautious as Fed’s comments on tapering confused the investors.
Sunday, November 17, 2013
Weekly Market Commentary - Nov 11 - Nov 15, 2013
Global markets continue to anchor on central governors’ announcements for directions. This anchoring is making many market participants nervous. As results season nears its end in India, market is struggling to find any catalyst to move up. And as we know, when indices are not moving up, they are moving down. Can’t stay confused/range bound/flat or in inaction for long.
Sensex lost 1.3%, Nifty lost 1.4% and CNX Midcap was down by 1.1% this week.
Monday – Sensex down by 0.8%, Nifty down by 1.0%, Midcap down by 0.9%
Continuing weakness in rupee had its effect on investors. Investors continue to stay cautious as September IIP and October retail inflation numbers are due for release tomorrow.
Tuesday - Sensex down by 1.0%, Nifty down by 1.0%, Midcap down by 1.0%
Although market consensus indicates a recovery in IIP at 3.6% in September vs. 0.6% in August, it is the retail inflation, which is causing nervousness among the participants. Street expects CPI for October to be at 10% vs. 9.84% previous month. Also, car sales, considered by investors as a signal of consumer sentiment, provided little cheer with domestic sales declining 3.9% in October.
Wednesday – Sensex down by 0.4%, Nifty down by 0.5%, Midcap down by 0.7%
Street was little disappointed as IIP numbers came in lower at 2% for September vs 3.6% consensus while CPI was on higher side with rise of 10.09% in October. Investors have again started speculating a rate hike in coming December 18 meeting of the RBI.
Thursday – Sensex up by 1.0%, Nifty up by 1.1%, Midcap up by 1.5%
Markets cheered the Janet Yellen’s statement that US economy is still underperforming and Fed will continue its liquidity support for some more time. Janet Yellen is set to replace Ben Bernanke as Federal Reserve Governor soon.
On domestic front, Raghuram Rajan again sprung back to action and soothes the nerves of the investors with announcement of 8,000 crores of bond buying program to infuse liquidity in the system.
Friday – Markets closed on occasion of Muharram
Sensex lost 1.3%, Nifty lost 1.4% and CNX Midcap was down by 1.1% this week.
Monday – Sensex down by 0.8%, Nifty down by 1.0%, Midcap down by 0.9%
Continuing weakness in rupee had its effect on investors. Investors continue to stay cautious as September IIP and October retail inflation numbers are due for release tomorrow.
Tuesday - Sensex down by 1.0%, Nifty down by 1.0%, Midcap down by 1.0%
Although market consensus indicates a recovery in IIP at 3.6% in September vs. 0.6% in August, it is the retail inflation, which is causing nervousness among the participants. Street expects CPI for October to be at 10% vs. 9.84% previous month. Also, car sales, considered by investors as a signal of consumer sentiment, provided little cheer with domestic sales declining 3.9% in October.
Wednesday – Sensex down by 0.4%, Nifty down by 0.5%, Midcap down by 0.7%
Street was little disappointed as IIP numbers came in lower at 2% for September vs 3.6% consensus while CPI was on higher side with rise of 10.09% in October. Investors have again started speculating a rate hike in coming December 18 meeting of the RBI.
Thursday – Sensex up by 1.0%, Nifty up by 1.1%, Midcap up by 1.5%
Markets cheered the Janet Yellen’s statement that US economy is still underperforming and Fed will continue its liquidity support for some more time. Janet Yellen is set to replace Ben Bernanke as Federal Reserve Governor soon.
On domestic front, Raghuram Rajan again sprung back to action and soothes the nerves of the investors with announcement of 8,000 crores of bond buying program to infuse liquidity in the system.
Friday – Markets closed on occasion of Muharram
Saturday, November 9, 2013
Weekly Market Commentary - Nov 4 - Nov 8, 2013
Markets struggled to find ground as Diwali euphoria dies out. In addition, returning of oil companies to source their dollar requirements from market got the rupee falling again, which worried the investors.
Global investors remained nervous over what continues to be their single most important concern: Will there be talks of Fed tapering or not in the next meeting.
Markets lost all the gains they made previous week. Sensex lost 2.5%, Nifty lost 2.6% and CNX Midcap was down by 0.3% this week.
Monday – Markets closed on occasion of Balipratipada
Tuesday - Sensex down by 1.2%, Nifty down by 1.0%, Midcap up by 0.6%
Markets closed down as India’s service sector activity, as measured by HSBC / Markit purchasing managers index, contracted for fourth successive month as economic uncertainty continues. The index improved to 47.1 in October from 44.6 in September but continued to stay below 50, which indicates contraction.
Wednesday – Sensex down by 0.4%, Nifty down by 0.6%, Midcap down by 0.1%
Investors are treading cautiously as S&P warned that it might downgrade India’s credit rating if next government fails to chart out a path to bring back the country to high growth. S&P currently has 'BBB-/A-3' sovereign credit rating on India with negative outlook. The rating major will conduct its next review after the general elections, which are due by May 2014; unless the country's fiscal or external standing deteriorates.
Thursday – Sensex down by 0.3%, Nifty down by 0.4%, Midcap down by 1.4%
Markets continued to stay range bound as oil companies return to market for their dollar requirements, which had got investors worried over depreciation in rupee. Any further depreciation in rupee may affect FIIs inflow in the domestic markets.
Friday – Sensex down by 0.8%, Nifty down by 0.8%, Midcap down by 0.1%
Markets continued to stay under pressure, as recent depreciation in rupee value brings back the inflation worries. Rise in inflation or inflation expectations may prompt RBI governor to hike rates again raising the cost of doing business in already reeling economy.
Investors were also cautious ahead of Fed meeting as improving US economic conditions fuelled the talks of tapering by US Federal Reserve.
Global investors remained nervous over what continues to be their single most important concern: Will there be talks of Fed tapering or not in the next meeting.
Markets lost all the gains they made previous week. Sensex lost 2.5%, Nifty lost 2.6% and CNX Midcap was down by 0.3% this week.
Monday – Markets closed on occasion of Balipratipada
Tuesday - Sensex down by 1.2%, Nifty down by 1.0%, Midcap up by 0.6%
Markets closed down as India’s service sector activity, as measured by HSBC / Markit purchasing managers index, contracted for fourth successive month as economic uncertainty continues. The index improved to 47.1 in October from 44.6 in September but continued to stay below 50, which indicates contraction.
Wednesday – Sensex down by 0.4%, Nifty down by 0.6%, Midcap down by 0.1%
Investors are treading cautiously as S&P warned that it might downgrade India’s credit rating if next government fails to chart out a path to bring back the country to high growth. S&P currently has 'BBB-/A-3' sovereign credit rating on India with negative outlook. The rating major will conduct its next review after the general elections, which are due by May 2014; unless the country's fiscal or external standing deteriorates.
Thursday – Sensex down by 0.3%, Nifty down by 0.4%, Midcap down by 1.4%
Markets continued to stay range bound as oil companies return to market for their dollar requirements, which had got investors worried over depreciation in rupee. Any further depreciation in rupee may affect FIIs inflow in the domestic markets.
Friday – Sensex down by 0.8%, Nifty down by 0.8%, Midcap down by 0.1%
Markets continued to stay under pressure, as recent depreciation in rupee value brings back the inflation worries. Rise in inflation or inflation expectations may prompt RBI governor to hike rates again raising the cost of doing business in already reeling economy.
Investors were also cautious ahead of Fed meeting as improving US economic conditions fuelled the talks of tapering by US Federal Reserve.
Sunday, November 3, 2013
Weekly Market Commentary - Oct 28 - Nov 1, 2013
Growing inflation, rising NPAs, deteriorating governance and still here we are at record high Sensex. As we all know, this rally is liquidity driven and this liquidity will not stop flowing until March next year. At least that is what street was expecting. I feel unless the rally spreads to midcaps and small caps (as the chart below suggests it hasn’t) it can’t be relied upon and can fizzle out anytime in next two quarters. It is advisable that investors book profits in the names, which have rallied beyond what their fundamentals would suggest.
Sensex gained 2.5%, Nifty gained 2.6% and CNX Midcap was up by 3.5% this week.
Monday – Sensex down by 0.5%, Nifty down by 0.7%, Midcap down by 0.8%
Markets were little jittery ahead of RBI monetary policy review meeting on Tuesday. A 25 bps repo rate hike is widely expected on the street. Fed is also scheduled to meet on Tuesday to discuss their tapering plans.
Tuesday - Sensex up by 1.7%, Nifty up by 2.0%, Midcap up by 1.5%
Markets went up as RBI actions were in line with what street was expecting. RBI raised the repo rate by 25 bps while cutting down the MSF rate by the same amount, thereby bringing the difference between them back to normal 100 bps. Mood was also bullish due to Fed’s decision of keeping their liquidity taps open and short coverings ahead of derivative expiry on Thursday.
Wednesday – Sensex up by 0.5%, Nifty up by 0.5%, Midcap up by 0.1%
Markets continued their momentum from previous day but were largely volatile ahead of F&O expiry next day.
Thursday – Sensex up by 0.6%, Nifty up by 0.8%, Midcap up by 1.5%
Sensex rose to its all time high amidst the sustained buying from institutional investors who ignored the latest Fed pronouncement of stopping the QE sooner than expected. As of now, market is factoring tapering to begin in March next year.
Friday – Sensex up by 0.2%, Nifty up by 0.1%, Midcap up by 1.2%
Strong support from FIIs and Fed’s decision to continue its QE program for now continued to take Sensex to a new high.
Monday – Sensex down by 0.5%, Nifty down by 0.7%, Midcap down by 0.8%
Markets were little jittery ahead of RBI monetary policy review meeting on Tuesday. A 25 bps repo rate hike is widely expected on the street. Fed is also scheduled to meet on Tuesday to discuss their tapering plans.
Tuesday - Sensex up by 1.7%, Nifty up by 2.0%, Midcap up by 1.5%
Markets went up as RBI actions were in line with what street was expecting. RBI raised the repo rate by 25 bps while cutting down the MSF rate by the same amount, thereby bringing the difference between them back to normal 100 bps. Mood was also bullish due to Fed’s decision of keeping their liquidity taps open and short coverings ahead of derivative expiry on Thursday.
Wednesday – Sensex up by 0.5%, Nifty up by 0.5%, Midcap up by 0.1%
Markets continued their momentum from previous day but were largely volatile ahead of F&O expiry next day.
Thursday – Sensex up by 0.6%, Nifty up by 0.8%, Midcap up by 1.5%
Sensex rose to its all time high amidst the sustained buying from institutional investors who ignored the latest Fed pronouncement of stopping the QE sooner than expected. As of now, market is factoring tapering to begin in March next year.
Friday – Sensex up by 0.2%, Nifty up by 0.1%, Midcap up by 1.2%
Strong support from FIIs and Fed’s decision to continue its QE program for now continued to take Sensex to a new high.
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