Weekly Market wrap

Market ends week with modest gains; Sensex rises 0.04%

The 'Weekly Market Wrap' for October 19, 2012

This was the forty second trading week of 2012 for the Indian markets which closed with marginal gains owing to mixed cues. Global cues were encouraging as the euro zone debt worries eased after Moody's Investors Service retained Spain's sovereign-debt rating at investment grade. The political worries in India, kept gains in check while corporate numbers announced by major Sensex stocks also affected the market direction. Key benchmark indices gained in three out of five trading sessions. 

The BSE Mid-Cap index underperformed the Sensex, falling 0.08% while the BSE Small Cap index outperformed the Sensex, rising 0.84%.

The BSE Sensex rose 7.13 points or 0.04% to 18,682.31 in the week ended on Friday, (October 19, 2012) while NSE Nifty rose 8.20 points or 0.14% to settle at 5,684.25.

RAZI ANWAR

PGDM 2nd year

The BSE Sensex erased previous day's gains in early trade on Wednesday following weakness in global markets amid sluggish economic growth and concerns over Eurozone.
The 30-share BSE benchmark went down 88 points to 18,705.35 and the 50-share NSE Nifty slipped 28.55 points to 5,676.05. The Indian rupee too declined by 16 paise to 52.88 against the US dollar.
Suresh Mahadevan of UBS expects the Nifty to trade in a range of 5,400-6,250 in the next 3-6 months. "A breakout beyond this range would need sentiment to translate into real fundamental improvement," he says.

Jaiprakash Associates plunged 3 percent as the UK's CRH Plc has terminated talks to buy Jaypee Cement's (a part of JP Associates) Gujarat operations on valuations differences.

Realty major DLF too was down 3 percent after Arvind Kejriwal demand special investigation team (SIT) probe on business relationship between Robert Vadra and the company.

BHEL shed another 1.6 percent on profit booking. Reliance Infrastructure, L&T, SBI, ICICI Bank, Kotak Mahindra Bank, Reliance Industries, Maruti and Bharti Airtel were other losers in early trade.

Infosys went down 0.86 percent ahead of second quarter results that scheduled to be announced on Friday.

Ranbaxy Labs, Cipla and Sun Pharma continued to outperform, rising 0.5 percent each. HCL Tech gained 1 percent.

The CNX Midcap Index rose 32 points to 7,903. About two shares declined for every share advancing on the National Stock Exchange.

In the second line shares, Polaris tanked 5% after the market regulator SEBI has barred its CMD Arun Jain from capital markets for two years on insider trading charges.

Indiabulls Real slipped 3.5 percent and GMR Infrastructure was down 2 percent after Arun Kejriwal named these companies in corruption.

IndusInd Bank declined 1 percent ahead of its September quarter results today.

HDIL and Adani Enterprises were down nearly 3 percent. Pantaloon Retail and Unitech fell 1.4 percent.

Emkay Global bounced back sharply with 5 percent gains. The National Stock Exchange said Emkay Global has met all financial obligations w.r.t freak trade. Therefore, Emkay terminal has been enabled today, the NSE said.

Peninsula Land rallied 6 percent as the company is in pact to develop 190-acre property in Central Mumbai (Sewree).


Dk Seth pgdm

Indian indices: Sensex slips 229 points

The Indian markets closed today's trading session in the red zone. Profit booking was seen in majority of the sectors except HC which was the only gaining sector in trade today. Lack of support from global peers led to a lackluster trade. Markets remained under pressure owing to movements in heavyweights like RIL, L&T, SBI, Sun Pharma, Bharti Airtel, Jindal Steel. The broader market too ended the trade on a negative note. The fall in the equities was also in line with global peers as investors remain cautious about the weak economic growth and September quarter earnings despite strong US jobs data. At the closing bell, the BSE Midcap index declined 0.44%, while the BSE Smallcap index was down by 0.16%.

Indian rupee followed the downward trend for second straight session, falling by 1.05% or 55 paise to 52.40 against the US dollar.

The Sensex closed at 18708.98, down by 229.48 points and the Nifty fell by 70.95 points to settle at 5676 in trade today.

Following are the stocks/sectors which were in news today

·Shares of telecom companies Idea Cellular, Reliance Communications, Tata Teleservices (Maharashtra) rallied in the weak market enviroment on reports that the empowered group of ministers (EGoM) recommended that the one-time spectrum fee beyond 4.4 MHz would be levied on prospective basis.

·Geometric surged after the company said that Indian equity investor Rakesh Jhunjhunwala acquired an additional 3.39% stake in the company via open market transactions. After market hours, the stock closed 4.31% higher. 

·Kingfisher Airlines hit the lower circuit of 5% at Rs12.60 for the sixth consecutive trading session, after the aviation regulator - Directorate General of Civil Aviation (DGCA) - issued a show cause notice to the company asking why its permit should not be cancelled or suspended as it had failed to "establish a safe, efficient and reliable service".

Market sentiment
The market breadth stood in favor of declines. Of the 3013 stocks traded on the BSE, 1383 (45.90%) rose, 1515 (50.28%) fell and 115 (3.82%) stocks remain unchanged.

Global signals
Asian stock markets declined on Monday despite the better-than-expected U.S. jobs data as concerns over the global economic growth and corporate earnings outlook weighed on the sentiment. Japanese markets remained closed for holiday.

European stocks, oil and gold fell on Monday as concerns over the global economic outlook and its impact on the coming corporate earnings season weighed on investor sentiment.

US Stock index futures pointed towards a lower opening at the Wall Street on Monday, with futures for the S&P 500 down by 0.43%, Dow Jones futures down by 0.34% and Nasdaq 100 futures down by 0.47%

RAZI ANWAR

PGDM 2nd year

Market Update

Inspite of the SGX NIFTY trading 30 points lower in the morning, the bellwether here started the day on positive note, up 15 points at the opening bell. All through the day, the Nifty traded in the tight band of 5,745-5,760 amidst high volatility. Buying in metal stocks, Reliance Industries and Pharmaceutical stocks was off settled by selling in select fast-moving consumer goods, banking and Anil Dhirubhai Ambani Group group stocks. However, the momentum buying in State Bank of India, Coal India and other heavy weights in the last hour has finally helped the market to wrap the session at day’s high at 5,772(future).

RAZI ANWAR

PGDM 2nd year

Indian indices

The Indian indices opened today's session on a flat note tracking mixed global cues. The trading was range-bound throughout the day. Further, in the second half weak opening of the European indices did not have major impact on the markets. Markets ended flat for the second consecutive trading session of this week. Indices got support from gains in Oil&Gas, PSU, HC, Metal, CG, FMCG and Realty sectors. Index Heavyweights like RIL, HUL, TCS, HDFC, ONGC, SBI and Dr Reddys were also the major contributors to the gaining trend. The Sensex closed 46 points higher while the Nifty rose 12 points in today's trade.

RAZI ANWAR
PGDM 2nd YEAR