Market summary pptx for the week ended 30-8-2013

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Market summary pptx for the week ended 30-8-2013

  1. 1. India MarketSummary fortheweekended 30-8-2013 I Review of the Week Market review for the week ended 30 August 2013 • Market moves up as rupee recovers after hitting record low. • The market managed to wipe off sharp losses during the week, tracking a rebound in the rupee and a slide in oil prices. • Sensex edged higher, while the Nifty ended flat. • Recovery was led by strong gains in shares of IT and pharmaceutical companies. • Life Insurance Corporation (LIC), the country's biggest institutional investor, was reported to have bought shares during the week. • Sensex rose 0.54% to 18,619.72 and Nifty ended flat at 5,471.80 in the week ended 30 August 2013. • Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. • Rupee recovered after Prime Minister Dr. Manmohan Singh said that government isn't looking at imposing restrictions on the movement of capital out of the country as he sought to allay investor concerns that have lately hurt financial markets, especially the rupee which has declined sharply against the dollar this month. • A recovery in the battered rupee, a slide in oil prices triggered by US President Barack Obama's comments on Wednesday that he hasn't yet decided whether to launch an attack on Syria and weaker-than-expected report on US durable-goods orders which raised expectations that the Federal Reserve may delay plans to reduce its monetary stimulus to the US economy, aided a rally in Indian stocks on Thursday
  2. 2. India MarketSummary fortheweekended 30-8-2013 Government Policies during the week • India's cabinet has approved infrastructure projects worth Rs 183000 crore • Lok Sabha on Monday passed the Food Security Bill after considering all the amendments, with the Opposition saying they will support the bill even though it is half-baked • Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of Rs 8000 crore on 30 August 2013 through multi-security auction using the multiple price method. • RBI has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies • The Finance Minister said that banks need capitalization to meet their enhanced lendings, this year the government has made provisions of Rs 14000 crore for bank recapitalization • The Forward Markets Commission (FMC), which regulates the commodity futures market in India, has raised the initial margin on gold futures to 5% from 4% for domestic traders effective Monday, 2 September 2013. • Prime Minister Dr. Manmohan Singh said that the rupee's tumble is a "matter of concern", but is part of a needed adjustment due to India's large current account deficit and will have a positive impact on export competitiveness in coming months • Reserve Bank of India (RBI) on Wednesday, 28 August 2013, said it will sell dollars to oil companies to defend the local currency. Economic data • Gross Domestic Product for the first quarter of this fiscal year came in at a four-year low of 4.4% versus 5.4% (YoY), below street expectation of 4.7%. In the previous quarter, the GDP witnessed a 4.8% growth
  3. 3. Corporate Announcements  Shares of three upstream PSU oil and gas firms dropped after crude oil prices rose during the week, stoking concerns of higher subsidy burden. ONGC (down 9.85%), Oil India (down 4.64%) and GAIL (India) (down 3.35%), edged lower.  Three state-run upstream oil firms -- Oil India, ONGC and GAIL (India) -- share part of the under-recoveries of state-run oil refining-cum-market firms arising from the government- imposed price caps on three key fuels -- diesel, LPG for domestic use and kerosene sold through the public distribution system.  Jindal Steel & Power (JSPL) tumbled 7.71%. JSPL announced that its board approved share buyback proposal through open market purchases. The company said it has set aside Rs 1000 crore for share buyback at p price of Rs 261 per share.  Among mining and metal shares, state-run Coal India fell 7.15% and Tata Steel declined 2.83%. However, Hindalco Industries rose 1.25%.  Sesa Goa surged 22.50% to Rs 187.30. It was the top gainers in the Sensex pack. The stock replaced Sterlite Industries in the 30-share benchmark S&P BSE Sensex early this week. Sesa Goa replaced Sterlite Industries (India) in the Sensex on 27 August 2013 following the scheme of amalgamation between the two Vedanta group firms, whereby Sterlite Industries (India) merged with Sesa Goa. Trading in Sterlite stopped from 27 August 2013.  Wipro rose 7.92%, announced the launch of a range of information technology (IT) products for the aviation industry. Wipro enters the CNX Nifty index in place of Reliance Infrastructure with effect from 27 September 2013  TCS rose 10.67% and Infosys rose 3.40%
  4. 4. India MarketSummary fortheweekended 30-8-2013 Top Gainers and Losers of the week (NSE) COMPANY PRICE ON PRICE ON CHANGE Aug 30, 2013 (Rs) Aug 23, 2013 (Rs) (%) SESA GOA LTD 188.75 153.05 23.30% TCS 2,033.20 1,829.45 11.10% HCL TECH. # 1,040.45 946.35 9.90% DR. REDDYS LAB 2,292.90 2,119.75 8.20% HERO MOTOCORP 2,046.50 1,899.25 7.80% COMPANY PRICE ON PRICE ON CHANGE Aug 30, 2013 (Rs) Aug 23, 2013 (Rs) (%) IDFC LIMITED 80.5 103.75 -22.40% AXIS BANK 832.95 981.5 -15.10% PNB 429.85 482.3 -10.90% ONGC 249.15 276.7 -10.00% BPCL 273 301.1 -9.30%
  5. 5. India MarketSummary fortheweekended 30-8-2013 II Forth coming week Government policies / announcements  Auto and cement stocks will be in focus as the companies from these sectors start unveiling their monthly sales volume data for August 2013 starting Sunday, 1 September 2013. Economic data Nil
  6. 6. India MarketSummary fortheweekended 30-8-2013 Market outlook  The market will closely watch the direction of the rupee and the investment activity of foreign institutional investors (FIIs), which hold the trump card for setting the near-term direction.  Trading will be volatile in the coming week, as nervous investors look for opportunities to cut their losses.  The market will focus on the growing geo-political concerns in the Middle East, which not only hit global equity markets this week, but also pushed up crude oil and gold prices.  There are allegations that Syria used chemical weapons on civilians.  Market men fear the sharp rise in global crude oil prices, coupled with a weak rupee, will worsen India's already record current account deficit (CAD).  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.  Indian financial markets will on Monday, 2 September 2013, react to the first quarter GDP growth data
  7. 7. India MarketSummary fortheweekended 30-8-2013 Sector Outlook  Global economies especially US, Japan or Europe are improving. Emerging nations like Turkey, Brazil and Indonesia are raising rates. So, competition is increasing for capital and that will pose its own challenges for India. Next month there is a big event on September 18 when Fed will decide on the taper amount. That is keeping volatility high, Volatility is here to stay for some more couple of quarters and our growth is slowing down.  Given the current local and global cues, the market is likely to be quite choppy in September Pharmaceutical stocks may bought at declines • Dr. Reddy's Laboratories • Cipla • Sun Pharmaceutical Industries Information Technology • IT stocks expected to gain on weak rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Positive economic data in the US, the biggest outsourcing market for the Indian IT firms, also boost IT shares. • Buy Infosys, TCS and HCL Tech at declines .
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