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

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  • 1. India MarketSummary fortheweekended 8-8-2013 I Review of the Week Market review for the week ended 8 August 2013 • Market declined in a truncated trading week on concerns US monetary policy will soon become less accommodative after two Federal Reserve officials on Tuesday said a reduction in Fed's asset purchases is likely later this year. • During the week, markets world over witnessed profit booking following comments by few Fed officials that the central bank there would start unwinding its bond buying programme • Back home, weak rupee also played spoilsport. • These concerns rather impacted the emerging markets in general and India in particular at a time when the RBI's various policy moves have failed to arrest rupee slide • Liquidity crunch at a time of slower economic growth coupled with weak currency have caused flight of capital from the Indian market during the past few days • Indian stocks gained in two of four trading sessions during the week. • Sensex dropped 1.96% to 18,789.34 and Nifty fell 1.98% to 5,565.65 for the week ended Thursday, 8 August 2013. • From 30-share Sensex pack, 17 stocks declined and rest of declined in the week ended Thursday, 8 August 2013. • The Bank of England on Wednesday provided explicit forward guidance on the central bank's future monetary policy, saying its key lending rate will remain at a record low of 0.5% until the UK's unemployment rate drops to 7%
  • 2. India MarketSummary fortheweekended 8-8-2013 Government Policies during the week • The government on Tuesday named Dr. Raghuram Rajan as the next Governor of the Reserve Bank of India (RBI) for a term of three years after D Subbarao's tenure ends on 4 September 2013. • Indian government on Wednesday allowed import of some steel products for certain critical applications without local quality certification, a move that could further hit domestic suppliers after imports rose 15% last fiscal year • Economic data • The HSBC Markit Services Purchasing Managers' Index fell to 47.9 in July from 51.7 in the previous month • The HSBC Emerging Markets Index, which tracks purchasing managers' index reports from 16 emerging economies, declined to 49.4 in July from 50.6 the previous month
  • 3. Corporate Announcements • Maruti Suzuki India gained 3.45%. The Reserve Bank of India on Wednesday lifted restrictions placed on foreign institutional investors buying shares in Maruti Suzuki India (MSIL) after their holdings fell below the prescribed limit. The ceiling on investment by foreign institutional investors (FIIs) in Maruti Suzuki is 24%. • Tata Motors fell 4.05% on reporting weak Q1 result. The company's consolidated net profit fell 23.11% to Rs 1726 crore on 8% growth in revenue (net of excise) to Rs 46785 crore in Q1 June 2013 over Q1 June 2012. The company said that strong demand, growth in volumes, richer product mix and favourable foreign exchange movement at Jaguar Land Rover (JLR) helped offset weak operating environment in Tata Motors' standalone business. • HDFC Bank slipped 3.15%. The private sector bank has increased the minimum interest rate it charges to borrowers or the base rate by 20 basis points to 9.8% with effect from 3 August 2013. • NTPC rose 5.73%. NTPC is participating in a joint venture power project with Ceylon Electricity Board (CEB) in Sri Lanka, with 50:50 equity participation from NTPC and CEB of Sri Lanka. A 2x250 megawatts (MW) coal based power project will be developed in Trincomalee, Sri Lanka under the joint venture. • Coal India surged 5.36%. The company announced that the All India Coal Workers' Federation (CITU) has served strike notice vide letter dated 7 August 2013 which was received by the company on 8 August 2013 against proposed divestment of 5% of CIL shares, restructuring of Coal India. • Bharat Heavy Electricals (Bhel) lost 21.32% on weak quarter performance. The company's net profit fell 49.45% to Rs 465.43 crore on 20.54% decline in total income to Rs 6996.60 crore in Q1 June 2013 over Q1 June 2012. • Tata Power Company dropped 7.88%. The company reported reverse turnaround in Q1, reported a consolidated net loss of Rs 114.70 crore in Q1 June 2013, compared with net profit of Rs 145.93 crore in Q1 June 2012.
  • 4. India MarketSummary fortheweekended 8-8-2013 Top Gainers and Losers of the week (NSE) COMPANY PRICE ON PRICE ON CHANGE Aug 8, 2013 (Rs) August 1, 2013 (Rs) (%) RANBAXY LAB 359.2 262.35 36.90% AMBUJA CEMENT 179 167.45 6.90% HINDALCO 91.7 87.5 4.80% RELIANCE INFRA 345.7 329.95 4.80% NTPC 137.1 131.55 4.20% COMPANY PRICE ON PRICE ON CHANGE Aug 8, 2013 (Rs) August 1, 2013 (Rs) (%) BHEL 117.4 150.6 -22.00% ASIAN PAINTS 430.8 498.2 -13.50% TATA POWER 77.7 88 -11.70% SUN PHARMA 505.7 568.25 -11.00% BPCL 276 304.55 -9.40%
  • 5. India MarketSummary fortheweekended 8-8-2013 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 • The government will unveil industrial production data for June 2013 on Monday, 12 August 2013. • The government will unveil the CPI data for July 2013 on Monday, 12 August 2013. • The government will unveil the WPI inflation data for July 2013 on Wednesday, 14 August 2013
  • 6. India MarketSummary fortheweekended 8-8-2013 Market outlook • The earnings season is through and now the market would more or less follow global cues. • Action by the RBI in the days ahead and the movement of the rupee would also be keenly watched especially after the new RBI governor Mr. Raghuram Rajan takes over. • The last batch of Q1 corporate results, macroeconomic data, trend in investment by foreign institutional investors (FIIs), movement of rupee against the dollar, and trend in global markets will dictate market trend during the forth coming week. • Investors will keep a close watch on the ongoing monsoon session of parliament as a heavy legislative business has been lined up by the government. • The stock market remains closed on Thursday, 15 August 2013, on account of Independence Day. • The market sentiment remains edgy on fears of slowdown in inflow from foreign institutional investors as the US Federal Reserve may wind down a $85-billion-a- month bond-buying program, which had become a source of funds for investment in Indian as well as other emerging markets.
  • 7. India MarketSummary fortheweekended 8-8-2013 Sector Outlook • Market still faces uncertainty. The US market has been a bit wobbly in the last couple of days and the rupee is still keeping its head below 61 to the dollar, which is not good news • Liquidity crunch at a time of slower economic growth coupled with weak currency have caused flight of capital from the Indian market during the past few days. The trend would broadly in the medium term continue as the foreign institutional investors (FII) find their domestic market more attractive following accelerated growth there. • Bank stocks may trade volatile with a decline trend. Even though pharma stocks reported disappointing result in June quarter, still there is scope to move ahead. FMCG stocks may be bought at declines. Automobiles stocks may hold good • Pharma - Buy at CMP/ declines - Dr Reddy, Ranbaxy, Sunpharma, Lupin • Automobiles - Buy at declines/ Hold - Maruti and Tata motors .
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