Live Markets Commentary
Sify Editors @12:30 PM
Week Ahead: Automobile, cement stocks to be in focus
The Indian stock market is likely to stay sideways for most part of the coming week, with investors reacting to some key economic data from the domestic and global front, the trend in crude oil prices and a few quarterly earnings reports from India Inc.
Shares of automobile and cement companies will see action with August sales and shipments data from leading automobile and cement manufacturers setting the trend. PSU oil stocks will be in focus too, with the companies set to undertake fuel price review.
Realtor DLF and state run oil marketing firms BPCL and Indian Oil Corporation will be announcing their first quarter results during the week. MOIL is also scheduled to report its earnings in the coming week.
Investors will be following the progress of the southwest monsoon as well. In a recent update, the IMD had said that the cumulative rainfall for the country as a whole so far this season was 3% below the long period average
On the economic front, data on India's manufacturing activity for August 2016 will be released by Markit Economics on Thursday (September 1).
The market is likely to open on a somewhat sluggish note next week after Wall Street closed on a lackluster note on Friday, with traders reacting to the US Federal Reserve Chair Janet Yellen's speech at the Kansas City Fed's monetary policy symposium. Yellen remarked that she believed the case for raising interest rates has strengthened in recent months and that the economy was nearing the Fed's goals of maximum employment and price stability and noted the central bank expects additional strengthening in the labor market and inflation rising to 2% over the next few years.
Sify Editors @10:30 AM
Weekly Wrap: Sensex, Nifty shed more than 1%
The Indian stock market saw some weak spells during the week ended 26 August 2016, as investors largely stayed on the sidelines, looking ahead to a speech from the US Federal Reserve Chair Janet Yellen at the annual Monetary Policy Symposium in Jakson Hole, Wyoming, and pressing some sales at times, hurt by recent weak data on inflation and industrial production.
Also, with the results season almost over, there were no big clues for market's near term direction. Investors reacted to some corporate news, besides keeping an eye on currency and crude oil movements.
The BSE benchmark Sensex endd the week with a loss of 294.75 points or 1.05% at 27,782.25, while the Nifty50 of the National Stock Exchange closed down 94.35 points or 1.09% at 8572.55. The BSE Midcap index closed 0.27% down, while the Smallcap index moved up 0.22%.
The market closed lower on Monday, after a highly lackluster session. The Sensex ended down 91.46 points, while the Nifty50 closd 37.75 points down, with IT, automobile and metal stocks losing ground on selling pressure. The mood in the market was largely cautious amid mixed reaction to the appointment of Urjit Patel as the new Governor of the Reserve Bank of India. Patel, whose appointment is expected to result in continuity of the apex bank's policies, will tak charge on 4 September 2016.
On Tuesday, the market ended flat after a highly volatile session. While Monday's weak close on Wall Street and subdued Asian markets resulted in a sluggish start and a subsequent weak spell for the Indian market, a steady trend in Europe pulled stocks out of the red in late afternoon trade. Recent weak data on inflation and industrial production weighed on sentiment even as some interesting corporate news triggered some hectic buying in some top and second rung stocks. The Sensex and the Nifty50 edged up marginally on that day.
Despite suffering a couple of setbacks intraday, the market closed modestly higher on Wednesday, thanks to some short-covering at some counters ahead of August series derivatives expiry. The Sensex ended up 69.73 points, while the Nifty50 closed up 17.70 points.
As stocks reeled under a moderately severe bout of selling pressure on weak global cues on Thursday, the Sensex and the Nifty50 declined by 224 points and 58 points, respectively.
The market opened on a strong note on Friday, but failed to hold gains and closed in negative territory, as a subdued trend in Asian and European markets and a drop in crude oil prices prompted investors to either stay away on the sidelines or press some sales. Also, investors were cautious, looking ahead to a speech from the US Federal Reserve Chair Janet Yellen, due later in the day. The Sensex ended down 53.66 points and the Nifty50 closed 19.65 points down.
Wipro declined nearly 6% last week, touching it lowest level in nearly two years and Tata Consultancy Services declined 2.8%. Infosys closed little changed, despite seeing some good spells in positive territory. The IT major traded firm on Wednesday on reports that the company earn about Rs 400 crore in incremental revenue over the third and fourth quarters of the current financial year as part of the Rs 1380 crore Goods Services and Tax Network project.
ITC, Reliance Industries and HDFC Bank gained 1% - 1.5%. GAIL India moved up 4.3%, lifted by an announcement from the company that it has signed an MoU with Silicon Valley-based Bloom Energy to generate power with clean and reliable energy.
ONGC declined by about 1.3%, Tata Motors closed 1.2% down despite rising sharply on the final session of the week. Tata Motors reported a 57% decline in first quarter net profit. Power stock NTPC closed 5.2% down on muted earnings.
In the banking space, State Bank of India closed 4.5% down and ICICI Bank declined 3.4%. Most of the top stocks in th banking space were quite volatile last week.
Welspun India tanked last week, hurt by Target Corp.'s decision to terminate its contract with the company after Welspun was found to have supplied bed sheets and pillow cases made of non-European cotton. Despite seeing a rally of sorts during the later part of the week, the stock faltered and closed notably lower, resulting in its market capitalisation falling almost 50%.
Trident Limited shares soared on Friday on reports the company might get orders from Target Corp.
On the monsoon front, an update from the weather office said that cumulative rainfall for the country as a whole was 3% below the long period average. (till August 25).
|Cities||Gold (10g)||Silver (1Kg)|
|Chennai||Rs. 31636.36||Rs. 45040.00|
|Mumbai||Rs. 32791.44||Rs. 45040.00|
|Delhi||Rs. 32192.51||Rs. 45040.00|
|Kolkata||Rs. 32823.53||Rs. 45040.00|
|Kerala||Rs. 31229.95||Rs. 45040.00|