Live Markets Commentary
Sify Editors @ 12:30 PM
Week Ahead: Market likely to see some wild swings ahead of F&O expiry
The market is likely to remain sideways for most part of the coming week with investors looking for direction. With second quarter earnings reports from India Inc due from early October and the Reserve Bank of India's monetary policy due on 4 October 2016, the mood is likely to be generally cautious.
The news about monsoon rains, the trend in inflow of funds from foreign investors and movements of crude oil and the rupee will continue to make an impact on the market.
According to a report from the India Meteorological Department, cumulative rainfall so far this season for the country as a whole, was five percent below long period average (till September 21). The weather office had predicted earlier that monsoon rainfall this year will be slightly above normal.
Movements at several front line counters will be a bit volatile at times due to the expiry of September series derivatives contracts on Thursday (September 29).
Towards the latter part of the week, stocks from banking, automobile and realty sectors are likely to be in focus with investors looking ahead to the monetary policy.
Investors will also look out for economic data from the U.S. and parts of Asia and Europe for direction.
The sharp fall in crude oil prices dragged down stocks on Wall Street last Friday, resulting in key U.S. indices closing notably lower. This could set up a weak start for Asian markets on Monday.
Sify Editors @ 11:00 AM
Weekly Wrap: Sensex, Nifty eke out modest gains
Despite seeing some bright spells in positive territory, key Indian stock indices eked out just modest gains in the week ended 23 September 2016, as the mood remained a bit cautious for most part of the week.
Concerns about U.S. interest rates eased after the Federal Reserve held rates unchanged on Wednesday. The Bank of Japan expanded its monetary base. Still, investors appeared wary of building up positions any significantly.
The BSE benchmark Sensex ended the week with a gain of 69.19 points or 0.24% at 28,668.22, while the Nifty50 of the National Stock Exchange ended at 8831.55, gaining 51.70 points or 0.59%. However, with several stocks from midcap and smallcap sections moving up sharply, the BSE Midcap and Smallcap indices climbed 2.16% and 1.52%, respectively.
After a positive start and a subsequent fall, the market rallied smartly on Monday, but settled just marginally up in the end, failing to hold at higher levels. Investors were a bit reluctant to make big moves ahead of the crucial monetary policy meetings of the U.S. Federal Reserve and the Bank of Japan. The Sensex ended up 35.47 points and the Nifty50 closed 28.55 points up on that session.
On Tuesday, the market ended lower, snapping a four-day winning streak, as investors chose to take profits, treading cautiously ahead of crucial meetings of the central banks of the United States and Japan. While the Sensex declined 111.30 points, the Nifty50 closed 32.50 points down.
The market ended flat on Wednesday, despite trading fairly high up in positive territory for most part of the session. The Sensex ended lower by 15.78 points and the Nifty50 closed 1.25 points up.
The market opened on a firm note and stayed that way right till the end of the session on Thursday thanks to positive global cues, after the U.S. Federal Reserve left its policy rates unchanged. The Sensex moved up 265.71 points and the Nifty50 closed 90.30 points up as stocks from across various sectors posted impressive gains.
On Friday, the market ended weak, with investors taking some profits after previous session's solid gains. A weak lead from Asian and European markets and a lack of positive catalysts from the domestic front too prompted investors to exit counters. The Sensex ended down 104.91 points, while the Nifty50 closed 35.90 points down.
ONGC, Reliance Industries, Asian Paints, Tata Steel gained 2.5% - 3.7%. HDFC Bank edged up 1.2%. The private sector bank announced that it allotted 67,000 senior, unsecured, redeemable, long-term non-convertible bonds, having a face value of Rs 10 lakh each.
HDFC gained about 1.5% after the company announced a proposal to raise about Rs 1340 crore through issue of non-convertible debentures.
Larsen & Toubro moved up 1.5%. L&T Technology Services made a decent debut on Friday and scored a marginal gain.
Axis Bank shed about 7.2% in the week, after signing a share purchase agreement with IFCI for acquiring 73.28 lakh equity shares of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise from IFCI.
FMCG major ITC declined 2.5%. Infosys and Lupin also closed weak.
ICICI Bank ended 1.3% down. ICICI Prudential Life Insurance Company's IPO evoked strong response from investors and got subscribed 10.48 times. The IPO came at a price band of Rs 300 - 334 per share. ICICI Bank will get the entire proceeds about Rs 6000 from the issue.
In economic news, data released by the Reserve Bank of India after trading hours on Wednesday showed that India's current account deficit narrowed to $0.3 billion or 0.1% of GDP in the June 2016 quarter, significantly lower than CAD of $6.1 billion or 1.2% of GDP in the June 2015 quarter. The contraction in the CAD was primarily on account of a lower trade deficit.
On Wednesday, in a significant move, the Union Cabinet approved the merger of railway budget with the general budget ending nearly hundred-year old practice of having two separate budgets and agreed, in principle, to advance the presentation of the budget from late February.
On Thursday, the Indian government named Chetan Ghate, Pami Dua and Ravindra H Dholakia as members on interest-rate setting Monetary Policy Committee (MPC). The Appointments Committee of the Cabinet cleared the three experts as members on the MPC for a period of four years.
The committee, which will take over the job of setting interest rate, will have six members, with the government and the Reserve Bank of India appointing three persons each. RBI nominees will include, governor, a deputy governor and one more person from the central bank.
On Wednesday, the Japanese central bank said it will control short-term and long-term interest rates, besides expanding the monetary base until inflation exceeds 2%. The bank said it will continue with its negative interest rate of -1% to the policy rate balances in current accounts of financial institutions.
|Cities||Gold (10g)||Silver (1Kg)|
|Chennai||Rs. 31925.13||Rs. 47560.00|
|Mumbai||Rs. 32898.40||Rs. 47560.00|
|Delhi||Rs. 31871.66||Rs. 47560.00|
|Kolkata||Rs. 32780.75||Rs. 47560.00|
|Kerala||Rs. 31283.42||Rs. 47560.00|