Marketsummarypptx fortheweekended - 6.6.2014


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Marketsummarypptx fortheweekended - 6.6.2014

  1. 1. India MarketSummary fortheweekended 6-6-2014 I Review of the Week Market review for the week ended 6 June 2014 • Bulls are calling the shots on the bourses. Market surged last week as foreign investors continued to mop up Indian stocks on expectations the government will take steps for revival of the economy. • The Reserve Bank of India's (RBI) decision to cut Statutory Liquidity Ratio by 50 basis points for commercial banks boosted sentiment. • Signals from the Prime Minister's Office that the government is keen to improve governance aided the rally on the bourses • Indian stocks surged to record at on Friday, 6 June 2014, after the European Central Bank on Thursday, 5 June 2014, cut its benchmark interest rates to unprecedented lows, spurring speculation the decision will accelerate capital inflows. • Sensex and Nifty both, hit record high. Sensex jumped 4.86% to settle at 25,396.46 I and Nifty jumped 4.88% to 7583.40 in the week ended 6 June 2014.
  2. 2. India MarketSummaryfortheweekended 6-6-2014 Government Policies during the week • The Reserve Bank of India kept its main lending rate viz. the repo rate unchanged at 8% and also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities • The central bank announced reduction in the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points to 22.5% of their NDTL from 23% with effect from the fortnight beginning 14 June 2014. Economic data • India's gross domestic product (GDP) rose at steady pace of 4.6% in Q4 March 2014 same as in the previous quarter. The GDP growth rose to 4.7% in the fiscal year ended 31 March 2014 (FY 2014) from 4.5% in FY 2013, but remained below the advances estimate of 4.9% released in February 2014. • The Eight Core Industries, having a combined weight of 37.9% in the Index of Industrial Production (IIP), recorded a 4.2% increase in output during April 2014 • Markit Economics said its seasonally adjusted HSBC India Composite Output index edged up to 50.7 in May from 49.5 in April to 50.7 in May • The headline HSBC Services Business Activity Index posted 50.2 in May, rising from April's reading of 48.5 and pointing to the first expansion of output in 11 months
  3. 3. Corporate Announcements • Metal and mining shares surged on hopes of pick up in demand as economy recovers. Hindalco Industries up 14.35%, Jindal Steel & Power up 13.99%, NMDC up 12.13% , Sesa Sterlite up 9.66% • Tata Steel jumped on reports that the company is poised to re-start operations at its captive iron ore mines in Odisha after receiving clearance from the Odisha state government on renewal of mining leases. • Shares of natural gas production companies surged on optimism Prime Minister Narendra Modi will take a decision on raising natural gas prices by the end of this month. Reliance Industries jumped 5.13% to Rs 1,119.85. • ONGC jumped 22.67% Cairn India jumped 10.85% • Shares of state-run oil marketing companies rose on speculation the government will raise kerosene and LPG prices. • BPCL jumped 20.33% Shares of state-run gas transmission and distribution major GAIL (India) jumped 11.43% • Punjab National Bank up 7.92%, Axis Bank up 7.5%, State Bank of India up 7.48%, Bank of Baroda up 7.22%, ICICI Bank up 4.46%, Kotak Mahindra Bank up 4.08%, HDFC Bank up 2.62% and IndusInd Bank up 1.98% •
  4. 4. India MarketSummary fortheweekended 6-6-2014 Top Gainers and Losers of the week (NSE) COMPANY PRICE ON PRICE ON CHANGE Jun 6, 2014 (Rs) May 30, 2014 (Rs) (%) ONGC 465.65 378.15 23.10% BPCL 628.1 521.9 20.30% TATA STEEL 560.65 475.1 18.00% HERO MOTOCORP 2,682.75 2,345.85 14.40% HINDALCO 169.25 148 14.40% COMPANY PRICE ON PRICE ON CHANGE Jun 6, 2014 (Rs) May 30, 2014 (Rs) (%) HCL TECH. 1,327.70 1,418.55 -6.40% DR. REDDYS LAB 2,354.05 2,460.65 -4.30% TCS 2,084.25 2,141.35 -2.70% SUN PHARMA 599.65 610.65 -1.80% ITC LTD 336.7 341.75 -1.50%
  5. 5. India MarketSummary fortheweekended 6-6-2014 II Forth coming week Government policies / announcements • The Reserve Bank of India (RBI) next undertakes monetary policy review on 5 August 2014. Economic data • The government will unveil industrial production data for April 2014 on Thursday, 12 June 2014 • The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for May 2014 on Thursday, 12 June 2014 • The government will announce data on inflation based on the wholesale price index (WPI) for May 2014 on 16 June 2014 • US nonfarm payroll data for May 2014 which is due for release on Friday, 6 June 2014.
  6. 6. India MarketSummary fortheweekended 6-6-2014 Market outlook • The progress of the monsoon rains, macroeconomic data, trend in investment by foreign institutional investors, trend in global markets, trend in other global emerging markets, the movement of rupee against the dollar and crude oil price movement will dictate trend on the Indian bourses over near and medium term. • Expectations from the new government are high and investors will be keenly watching policy announcements from the government to drive a turnaround in the investment cycle. • Crude oil price movement will be in focus as a meeting of the Organization of the Petroleum Exporting Countries (OPEC) is scheduled on Wednesday, 11 June 2014. It remains to be seen if the cartel keeps its oil production quota unchanged
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