Saturday, September 08, 2012
The Indian markets remain in green amid rangebound session with a positive bias. All round buying led the market to trade higher. The NSE Nifty has touched the 5350 level. Individual stocks like Cipla gained as the company won patent case against Roche, which filed suit against the company on drug Tarceva in 2008. ITI surged as the government said the Department of Telecommunications has prepared a plan worth Rs4,156 crore for revival of the company. All the sectors are trading in green, barring BSE Power with marginal losses. At 12.40 pm, the Sensex was trading at 17762.83, 79 points higher and the Nifty was trading at 5363.40, up by 21 points.
Indian stock indices gained 1.5% during the week, mainly due to a powerful rally on Friday, after the ECB President delivered on the promise made by him recently in its fight against the three-year-old debt turmoil. It may be recalled that Indian indices had snapped a four-week winning streak last Friday on worries that policy paralysis will continue to be a major headwind for the Indian economy and markets. In fact, India is at a risk of losing its investment grade debt rating if the Centre fails to announce any significant reform(s) in the coming days. That could partly offset the positive vibrations generated by the ECB monetary stimulus and the impending QE3 from the Federal Reserve. Next week will be an important one again, as markets will react to the latest IIP and WPI inflation numbers. Globally, the key event to keep on one’s radar will be the two-day FOMC policy meeting. ECB President Draghi has kept its promise on monetary stimulus. Will his US counterpart do an encore on QE? We will have to wait and watch.
It was a volatile week for the Indian markets, with the Sensex unexpectedly closing 1.83% higher and the Nifty up by 1.90%. The markets gained marginally for the first week of September after a fall in the previous week. Major Headlines of the week: July exports slips 14.8%, Imports falls 7.6% Manufacturing growth slows down to 9 month low Fin Min may raise loan limit on FCNR deposits Planning Commission expects 8.2% growth in 12th Five year Plan No immediate plan to hike fuel prices: Jaipal Reddy ECB keeps key rates unchanged at 0.75%
Advance tax data for Q2 September 2012, policy meeting of the Federal Open Market Committee on US interest rates and mid-quarter policy review by the Reserve Bank of India (RBI) will dictate near term trend on the bourses. Advance tax data for the 2nd installment due on 15 September 2012 could provide cues on the likely corporate earnings for Q2 September 2012. The RBI is scheduled to undertake a mid-quarter review of the monetary policy on 17 September 2012. RBI last cut rates by 0.5 percentage point to 8% from 8.5% in April, its first move to reverse a 20-month rate-tightening cycle. It then held rates steady in June and at its last rate-setting meeting on July 31, saying that a cut would exacerbate inflationary pressures.
The market edged higher last week in tandem with global stock markets as investors risk appetite strengthened after the European Central Bank on Thursday, 6 September 2012, unveiled steps to contain the region's debt crisis. The market rose in three out of five trading sessions. The BSE Sensex rose 254.17 points or 1.46% to 17,683.73. The 50-unit S&P CNX Nifty rose 83.60 points or 1.59% to settle at 5,342.10. The BSE Mid-Cap index outperformed the Sensex, rising 1.77%. The BSE Small Cap index underperformed the Sensex, rising 0.95%.
Key benchmark indices edged higher to attain their highest closing level in more than two weeks on a special live trading session today, 8 September 2012, with market sentiment boosted by provisional data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Friday, 7 September 2012. The market breadth was strong. The barometer index, BSE Sensex, jumped 65.92 points or 0.37%, up about 50 points from the day's low and off close to 25 points from the day's high. FMCG stocks rose on revival of monsoon rains towards the end of the monsoon season, with Hindustan Unilever (HUL) hitting record high. Index heavyweight and cigarette maker ITC edged higher. Another index heavyweight Reliance Industries (RIL) also moved higher. Metal shares extended Friday's rally triggered by China's thrust on infrastructure projects to spur growth in the world's second biggest economy. National Aluminium Company (Nalco) and NMDC edged higher as the Finance Ministry has issued an advertisement for appointing merchant bankers for divestment of government stake in these two state-run companies. Tyre stocks surged on renewed buying.