Live Markets Commentary
Sify Editors @ 1:00 PM
Week Ahead: Market to corporate news, economic data for direction
Amid expectations of good monsoon rains, progress on the reforms front and fairly positive global cues, the Indian stock indices Sensex and the Nifty50 scaled new all-time highs last week, and the mood is expected to stay fairly upbeat in the coming week as well.
Some profit taking, however, is not ruled out. Economic data, the trend in crude oil prices and movements of the rupee against the U.S. dollar will be eyed.
Coal India, NTPC, Hindalco, Larsen & Toubro, Mahindra & Mahindra, Power Grid Corporation, BPCL and Power Finance Corporation are among the companies scheduled to announce quarterly results next week.
During the later part of the week, automobile and cement stocks will see plenty of action, with May sales and shipments data from leading players in the sectors setting the trend.
Shares of state-run oil marketing companies will be in focus too. Airlines stocks will track aviation fuel prices for direction.
The market will be tracking the progress of the southwest monsoon. A recent report from India Meteorological Department had said that monsoon rains will arrive over South Kerala by May 30-31.
On the economic front, the data on fourth quarter Gross Domestic Product will be announced by the government on Wednesday (31 May 2017). In the October - December 2017 quarter, GDP had grown at 7%, lower than the 7.4% growth it had registered in the preceding quarter.
The data on India's manufacturing activity in May 2017, will be released by Markit Economics on Thursday (June 1). In April 2017, the Nikkei Manufacturing PMI came in with a reading of 52.5, unchanged from its score of the preceding month.
Data from China, Europe and the U.S. will be eyed as well for direction.
Sify Editors @ 11:00 AM
Weekly Wrap: Sensex, Nifty record new all-time highs
The Indian stock market saw some strong spells in positive territory during the week ended 26 May 2017, amid easing concerns over U.S. interest rate hikes, and on expectations aboout good monsoon rains and reforms.
Stocks had a tough time during the first three sessions, however, due to rising tensions at the border that prompted the Indian army to conduct artillery raids on Pak military posts across the Line of Control.
There were a few volatile spells with s0me front line counters witnessing wild swings due to expiry of May series derivatives contracts.
The BSE benchmark Sensex hit a new all-time high of 31,074.07 on Friday and eventually ended the week with a gain of 563.29 points or 1.85% at 31,028.21. The Nifty50 of the National Stock Exchange ended up 167.20 points or 1.77% at 9595.10, after hitting a record high of 9604.90 on the final session.
Midcap and smallcap stocks declined on profit taking. The BSE Midcap index ended the week lower by about 0.85%, while the Smallcap index declined by about 0.9%.
The market opened the week on a firm note, with a steady trend in Asian and European markets amid easing concerns about U.S. interest rates aiding sentiment. Optimism about growth, encouraging monsoon forecast, the roll-out of GST from July, expectations of a rate cut after recent data showed a significant drop in retail inflation aided sentiment. The Sensex ended up 106.05 points and the Nifty50 gained 10.35 points.
After edging up slightly at the start, the market retreated into negative territory on Tuesday, and after staying sideways for about three hours, staged a modest recovery but plunged again on selling pressure and eventually ended the session notably lower. Reports about the Indian Army conducting punitive artillery assaults to destroy Pakistan military posts across the Line of Control near Rajouri raised geopolitical worries and prompted investors to stay cautious. The Sensex and the Nifty50 ended lower by 205.72 points and 52.10 points, respectively.
On Wednesday, the market ended lower as investors chose to lighten commitments amid none too encouraging global cues and on lingering concerns about the tensions at the border. The Sensex ended 63.61 points down and the Nifty50 declined 25.60 points.
With the bulls staging a strong comeback, the market rebounded on Thursday, after two successive days of losses. The mood was quite upbeat thanks to a positive lead from Asian markets where shares moved higher after the minutes of the US Federal Reserve's monetary policy meeting signalled a cautious approach to future interest rate hikes and hinted at trimming its balance sheet.
Recent encouraging forecast on monsoon rains, the GST rollout from July and hopes that the government will speed up other reforms triggered the buying spree. The Sensex ended up 448.39 points and the Nifty50 gained 149.20 points.
The Sensex and the Nifty50 scaled fresh all-time highs on Friday as stocks across the board saw some strong buying. The Sensex ended up 278.18 points and the Nifty50 gained 85.35 points.
Tata Motors gained more than 8.5% on better than expected fourth quarter results. The company reported a 16.8% decline in consolidated net profit at Rs 4336 crore for the quarter ended March 2017, compared to year-ago quarter. Revenues were down 2.86% in the quarter. Tata Motors launched its new BS IV compliant medium and heavy duty trucks with 'exhaust gas recirculation' and 'selective catalytic reduction' technologies in Tamil Nadu last weekend.
FMCG heavyweight ITC (up nearly 8%) ended sharply higher. The company reported a 12.13% jump in net profit for the quarter ended March 2017, over the year-ago quarter. Total income increased 6.2% to Rs 15,410.92 crore in the fourth quarter.
Shares of carmaker Maruti Suzuki Limited rallied 4.3% thanks to a rating upgrade by a foreign brokerage.
IT bellwether Infosys, engineering sector major Larsen & Toubro and private sector bank majors ICICI Bank and HDFC Bank were among the other top gainers in the Sensex last week, moving up 3.7% - 4.75%.
Sun Pharmaceutical Industries ended nearly 13% down, with disappointing results of its subsdiary Taro Pharmaceuticals triggering heavy selling at the counter. Taro reported a 27.82% decline in net profit in the fourth quarter.
Lupin ended 15.4% down. The pharma major reported a more than 49% decline in consolidated net profit and Cipla ended 12.75% down after reporting consolidated net loss of Rs 61.79 crore in the fourth quarter. Dr Reddy's Laboratories ended weak too, losing about 9.2%.
State Bank of India declined 6.3% and Bajaj Auto shed 5.4%, while Coal India ended 3.1% down.
GAIL India saw some heavy selling midway through the week on disappointing results, but bounced back well to end marginally up. The company reported a sharp 68.7% decline in net profit in the fourth quarter. The fall in bottomline was due to accounting of impairment of investments in Ratnagiri Gas and Power of Rs 783 crore in the March 2017 quarter. The net profit without the impact of impairment rose 25% to Rs 1043 crore in the fourth quarter over the corresponding quarter of the previous year.
Mahindra & Mahindra edged up marginally. The comapny announced that it has plans to invest directly and/or through its subsidiaries in high-end electric powertrain technology as part of its plan for the future of mobility and electrification of some of its existing and future products. The investments will also be utilised towards increasing the capacity for electric powertrains and electric vehicles.
Adani Ports and Special Economic Zone edged down marginally, regaining most of the ground it had lost earlier in the week. The company reported a 27% rise in consolidated net profit for the quarter ended March 2017.
Voltas, Jain Irrigation Systems, Indian Oil Corporation, Bosch, GE T&D, Venky's India, Federal Mogul Goetze, Pincon Spirit, APL Apollo Tubes and Shaily Engineering Plastics saw strong buying last week thanks to upbeat results.
Sintex Industries, trading ex-demerger, rose sharply on huge volumes, on Thursday.
United Spirits rallied sharply following the Chief Executive Officer of the company making a positive pitch on the company’s performance. The company has set out the medium-term goal to grow top-line by double digit and improve operating margin to mid-high teens, he said.
According to reports in a section of the media, the Enforcement Directorate has taken possession of Vijay Mallya's stake in United Breweries and other listed companies. Reports pegged Mallya's dues to lenders at nearly Rs 8200 crore as on December 31, 2016.
Technofab Engineering, Sunil Hitech, CCL Products, SRF, Banco Products, GATI, Den Networks and Sharda Cropchem declined sharply on weak results. Videocon Industries down 20% as Dena Bank declares co's account as NPA.