Market summary pptx for the week ended 23-8-2013


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Market summary pptx for the week ended 23-8-2013

  1. 1. India MarketSummary fortheweekended 23-8-2013 I Review of the Week Market review for the week ended 23 August 2013  Market cut sharp weekly losses triggered by rupee plunging to a record low against the dollar during the week.  Globally, rising expectations that the US Federal Reserve will soon start withdrawing its monetary stimulus to the US economy also triggered fall in domestic bourses.  However, market recovered on bargain hunting and comments from Finance Minister and Reserve Bank of India Governor that India doesn't plan to introduce capital controls.  Sensex regained the psychological 18,000 level after sliding below that level during the week. Sensex maintains 18,000 in volatile trading week  The market fell in three out of five trading sessions in the week.  Sensex fell 0.42% to 18,519.44 and Nifty fell 0.66% to 5,471.75 for the week ended Friday, 23 August 2013.  Among the 30-share Sensex pack, 16 stocks declined and rest of them rose  The pressure on Indian and Indonesian currencies and asset prices is not a trigger for rating action at this point, Fitch ratings said in note on Thursday Fitch has a stable outlook on the 'BBB-' sovereign credit ratings it has for both India and Indonesia.
  2. 2. India MarketSummary fortheweekended 23-8-2013 Government Policies during the week • The Reserve Bank of India said it would repurchase government bonds Rs 8000- crore to increase the availability of cash in the banking system, a step that appears to be a partial reversal of the slew of measures it took since mid-July to tighten liquidity. • Finance Minister P. Chidambaram and Reserve Bank of India Governor D. Subbarao said in separate news conferences that India doesn't plan to introduce capital controls. Economic data  Nil
  3. 3. Corporate Announcements • L&T shed 2.37%. The stock had hit 52-week low of Rs 698.60 in intraday trade on Thursday, 22 August 2013. The company announced that its construction division has won new orders valued at Rs 1504 crore across various business segments in August 2013. • Shares of power equipment major Bharat Heavy Electricals (Bhel) jumped 9.58%. • ICICI Bank slipped 0.73%. The bank said it has increased base rate by 0.25% to 10% per annum with effect from 23 August 2013. ICICI Bank has also announced an increase of 0.25% in its benchmark prime-lending rate and in its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from 23 August 2013. • Maruti Suzuki India slipped 2.22%. The company introduced the stylish, aggressive, sporty Stingray car mode., which is powered by a 998 cc petrol engine, is available in three variants, with price ranging between Rs 4,09,999 to Rs 4,66,999 • Reliance Industries (RIL) shed 0.74%. The company and British Petroleum announced a new gas condensate discovery off the east coast of India in the Cauvery basin. The discovery, in the deepwater block CY-DWN- 2001/2 (CYD5), is situated 62 kilometers from the coast in the Cauvery Basin and is the second gas discovery in the block. RIL is the operator with 70% equity and BP has a 30% share. • Bharti Airtel lost 8.11% and was the top loser among from the Sensex pack. Reportedly the company is in advanced discussions to sell off its Sri Lankan operations to Abu Dhabi's Etisalat. • Sesa Goa jumped 17.08%. Sterlite Industries (India) gained 15.69%. Sesa Goa will replace Sterlite Industries (India) in the 30-share benchmark S&P BSE Sensex with effect from 27 August 2013. The move comes in the wake of the scheme of amalgamation between the two Vedanta group firms whereby Sterlite Industries (India) has been merged with Sesa Goa. Trading in Sterlite will stop from 27 August 2013. • Sesa Goa on 19 August 2013 said that the merger of Sterlite Energy (SEL) with Sesa Goa and the demerger of the aluminium business undertaking of Vedanta Aluminium (VAL) into Sesa Goa pursuant to the Scheme of Amalgamation and Arrangement have become effective. As per the swap ratio, every equity shareholder of Sterlite holding 5 equity shares of the company will be entitled to be issued 3 shares of the Sesa Goa.
  4. 4. India MarketSummary fortheweekended 23-8-2013 Top Gainers and Losers of the week (NSE) COMPANY PRICE ON PRICE ON CHANGE Aug 23, 2013 (Rs) Aug 16, 2013 (Rs) (%) TATA STEEL 282.3 235.35 19.90% SESA GOA LTD 153.05 130.25 17.50% JAIPRAKASH ASSO. 33.85 29.7 14.00% JINDAL STEEL 240.55 213.15 12.90% HINDALCO 103.8 93.55 11.00% COMPANY PRICE ON PRICE ON CHANGE Aug 23, 2013 (Rs) Aug 16, 2013 (Rs) (%) ACC LTD 989.7 1,158.90 -14.60% AMBUJA CEMENT 159.55 173.4 -8.00% BHARTI AIRTEL 308.95 335.65 -8.00% NTPC 129.05 139.65 -7.60% SUN PHARMA # 507.35 542.45 -6.50%
  5. 5. India MarketSummary fortheweekended 23-8-2013 II Forth coming week Government policies / announcements  The monsoon session of the Parliament begins on Monday, 5 August 2013 and ends on 30 August 2013 Economic data  Central Statistics Office (CSO) will unveil data on gross domestic product (GDP) for Q1 June 2013 on Friday, 30 August 2013
  6. 6. India MarketSummary fortheweekended 23-8-2013 Market outlook  Market may trade with huge volatility during the forth coming week ahead of expiry of near month F&O contracts.  The movement of the rupee, trend in investment by foreign institutional investors and trend in global emerging markets may dictate near term trend on the bourses.  The rupee has slumped against the dollar in the past few days on worries that India would struggle to fund its current-account deficit when the US central bank pulls back stimulus to the US economy.  Rupee depreciation fuels inflation, increases import bill and current account deficit. It also increases the government's spending on fuel subsidies, potentially widening the fiscal deficit.  Meanwhile, political gridlock has hit functioning of Parliament during the ongoing monsoon session  On the global market front, investors are keeping a close watch on the Federal Reserve's three-day annual monetary conference in Jackson Hole, Wyo which began on Friday, 23 August 2013, on whether Fed officials give any indication of the timing of the potential tapering of the Fed's bond purchases
  7. 7. India MarketSummary fortheweekended 23-8-2013 Sector Outlook Market trend is on the downside only. Metal • Rupee depreciation will be beneficial for non-ferrous stocks. Declining rupee paves way for steel price hikes. In the short term steel demand has been muted and has not picked up enough to absorb a price hike. However, Tata steel expected to register growth as some improvement indication from Europe business margin • Investors can buy Tata steel, Hindalco and Hindzinc at declines Power • The compensatory tariff hike that Tata Power and Adani might see will be a huge relief for the sector. Tata Power is likely to be the biggest beneficiary because as per Modi's estimates, one can expect the company to report Rs 200 crore profit due to the 55-58 paise hike, instead of Rs 1,000 crore loss without the hike. • Buy Tata power at current market price OMC • Sharp rupee depreciation government will either have a one-time price hike for diesel or will increase the monthly pace of price hikes. This sector is largely regulated. Investors should now be looking at oil marketing companies, the volatile stocks that are down right now, pose very good buying opportunity. • Buy BPCL, IOC and HPCL at declines .
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