Key stock market indices in India and globally rose over the past week on positive global cues and softening crude oil prices. In India, the Sensex gained 1.21% to close at a one-month high of 26,419 points, while the Nifty rose 1.56% to close at a record high of 7,913 points. Most other global indices also rose over 1%, with the Dow and S&P 500 in the US gaining over 2%. Commodity prices were mixed with metals rising but gold and crude oil falling. The rupee appreciated 1.01% against the US dollar.

1. RETAIL RESEARCH
Weekly Statistics
Key Indices 22-Aug % Chg
Sensex 26420 +1.21
Nifty 7913 +1.56
DJIA 17001 +2.03
Nasdaq 4539 +1.65
FTSE 6775 +1.29
DAX 9339 +2.71
Hang Seng 25112 +0.63
Shanghai 2241 +0.63
Nikkei 15539 +1.44
Bovespa 58407 +2.53
Indonesia Jakarta 5199 +0.97
Singapore – Strait 3326 +0.32
MSCI Emerging Mkt 1083 +0.80
MSCI World 1736 +1.27
Metals (USD) 22-Aug % Chg
Aluminum 2060 +3.60
Copper 7075 +3.39
Zinc 2364 +4.39
Tin 22400 +0.11
Lead 2253 +2.29
Gold 1279 -2.73
Interest Rates 22-Aug Chg bps
MIBOR 8.96 +2.00
10 yr bond yield 8.52 +0.00
LIBOR – UK 0.56 +0.00
LIBOR – USA 0.24 +0.63
LIBOR – Europe 0.15 -1.00
Exchange Rates Value % Chg
USD/INR 60.44 -1.01
USD/EURO 0.76 +1.21
USD/YEN 103.92 +1.53
USD/POUND 0.60 +0.72
DXY 82.33 +1.12
Other Value % Chg
RJ/CRB Index 288.67 -0.43
Crude Oil ($/ Barrel) 93.65 -3.95
Baltic Dry Index 1061 +4.53
Turnover Week Week %
(Rs. Bn) 14-Aug 22-Aug
BSE 100.5 149.8 49.0
NSE 576.7 799.3 38.6
Futures 1428.7 2045.5 43.2
Index options 5339.2 7625.1 42.8
Stock options 487.3 743.6 52.6
Net Flows (Cr) FII MF
Aug 14 –Aug 21 2637.1 1315.8
Prev Week 1051.4 479.6
Volatility Index (ViX) Nifty CBOE
22-Aug 13.62 11.47
% Chg w-o-w +3.0 -12.8
Outlook for Week Ahead Aug 23, 2014
The market may remain volatile next week as traders roll over positions in the futures & options
(F&O) segment from the near month August 2014 series to September 2014 series. The near-month
August 2014 F&O contracts expire on Thursday, 28 August 2014.
Trend in investment by foreign portfolio investors (FPIs), trend in global markets, trend in other
global emerging markets, the movement of rupee against the dollar, crude oil price movement and
monsoon will be also closely tracked by the investors. India's stock market remains closed on Friday,
29 August 2014, on account of Ganesh Chaturthi.
In macro economic data, the government will release Q1 June 2014 GDP data on Friday, 29 Aug
2014. India's GDP rose at steady pace of 4.6% in Q4 March 2014. In stock specific activity, Shree
Cement will declare Q4 and full year ended 30 June 2014 result on Monday, 25 August 2014.
The uptrend in the markets could sustain in the next week if Nifty manages to close above
immediate resistance level of 7930. A decisive break above 7930 could see Nifty heading towards
8000 level in the next week. On the downside, it is likely to find strong support at 7840 levels.
The Week Gone By Aug 23, 2014
Key benchmark indices edged higher in the week ended Friday, 22 August 2014. Positive global cues,
softening of crude oil prices and speculation of an upward revision of India's sovereign rating
outlook by global rating agency S&P underpinned sentiment. The market logged gains in four out of
five trading sessions in the week. S&P BSE Sensex gained 316.32 points or 1.2% to 26,419.6, its
highest closing level since 19 August 2014. The 50-unit CNX Nifty rose 121.5 points or 1.6% to
7,913.2, a record closing high for the index. The S&P BSE Mid-Cap index advanced 333 points or 3.7%
to 9,340.9. The S&P BSE Small-Cap index advanced 474.46 points or 4.83% to 10,298.52. Both these
indices outperformed the Sensex.
Key Highlights during the week:
• In a move to make finance cheaper for weaker sections of the society, the government said that
it will soon be massively expanding the eligibility cap for the 5% interest subvention scheme to
Rs 5 lakh from the current Rs 1 lakh.
• Indirect tax collections inched up by 3.9% in the April-July quarter of the current fiscal due to
decline in custom duty and excise duty collections, reflecting slump in manufacturing activity.
• Forex reserves rose by $43.3 mn for the week ending August 15 to $319.39 bn, shows Reserve
Bank of India (RBI) data released on Friday.
• The RBI said it would conduct more frequent term repos but retained the overall borrowing
limit for lenders, in a bid to make borrowing more flexible without injecting additional liquidity
into markets.
• RBI prescribed rules including loan-to-value ratio for non-banking finance companies (NBFCs) to
lend against shares. Banking regulator took this step to avoid volatility in capital market
triggered by offloading of shares by NBFCs. Under new rules, finance companies will have to
keep Loan to Value (LTV) ratio of 50% in loans given against shares.
• Indian arm of Dun & Bradstreet, a global business information firm has pegged the country's
economic growth at average 7.5% during 2014-15 to 2019-20, compared with 6.7% in the
previous six years.
US Markets
All three major indexes posted gains for the week, with the Dow up 2%, the S&P up 1.7% and
Nasdaq up 1.6%. It was the strongest week of gains for both the Dow and the S&P since April, and
the third straight week of gains for all three indexes.
Key Highlights during the week:
• U.S. housing starts and building permits rebounded strongly in July by 15.7%, suggesting the
housing market recovery was back on track after stalling in the second half of last year.
RETAIL RESEARCH
Weekly Market Wrap
Aug 23, 2014

2. RETAIL RESEARCH
Nifty
Weekly Gainers CMP (Rs) % Rise
BASF 1262.1 36.4%
GHCL 85.7 26.5%
SHANTIGEAR 105.4 24.2%
RAMCOIND 66.6 19.4%
TBZ 165.0 19.0%
Weekly Losers CMP (Rs) % Fall
BHUSANSTL 124.4 -22.5%
SUPREMEINF 360.6 -7.5%
HDFC 1044.6 -7.1%
SKUMARSYNF 4.8 -6.9%
NETWORK18 47.4 -5.6%
• The cost of living in the U.S. climbed by 0.1% in July at the slowest pace in five months,
indicating price pressures remain limited even as the economy picks up.
• The number of building permits issues in the U.S. rose significantly more than expected in July,
while housing starts also blew past forecasts by 8.1% to a seasonally adjusted 1.052 million
units from June’s total of 973,000. Analysts expected building permits to rise by 2.5% to 1.0
million units in July.
• The MBA's seasonally adjusted index of refinancing applications rose 2.7%, while the gauge of
loan requests for home purchases, a leading indicator of home sales, fell 0.4%.
• U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the
week ending August 16 decreased by 14,000 to a seasonally adjusted 298,000 from the
previous week’s revised total of 312,000.
• The U.S. housing recovery gained traction in July as sales of previously owned homes rose to
their highest level in 10 months. Sales of existing homes increased 2.4% from June to a
seasonally adjusted annual rate of 5.15 million, the National Association of Realtors said on
Thursday.
Week Ahead
U.S. stocks have been on a roll of late, with the S&P 500 hitting the latest in a series of records on
Thursday, and investors expect the index's momentum to soon carry it to - if not far past - the 2,000
milestone. Despite record levels and the lack of any sustained pullback since 2012, investors are
finding reasons to buy, with U.S. stock funds getting $9.9 bn in inflows last week, according to
Thomson Reuters' Lipper service.
Other Markets
Asian stocks rose, with the regional benchmark index completing two weeks of gains, after reports
from U.S. housing to manufacturing showed the world’s largest economy is strengthening. The MSCI
Asia Pacific Index gained 0.5% to 148.78 in the week.
Key Highlights during the week:
• The international trade balance of the 18 countries sharing the euro grew to 16.8 billion euros
in June from 15.7 billion euros in June last year, as exports rose more than imports. It was up
from the 15.4 billion euro surplus recorded in May.
• Japan posted a goods trade deficit of 964.0 billion yen in July, down from a year earlier as
exports grew for the first time in three months but still a record 25th straight month of red ink,
as fossil energy imports continued to rise amid the prolonged halt of nuclear power plants.
• Japan’s all industries activity index fell more-than-expected last month to a seasonally adjusted
-0.4%, from 0.6% in the preceding month. Analysts had expected Index to fall -0.2% last month.
• The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) rose to a
seasonally adjusted 52.4 in August, up from a final reading of 50.5 in July.
• Growth in China's vast factory sector slowed to a three-month low in August as output and new
orders moderated. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index
(PMI) fell to 50.3 from July's 18-month high of 51.7, missing a Reuters forecast of 51.5.
• Preliminary German PMI Manufacturing decreased to 52 August, from 52.4 in July, according to
data released today by Markit. The result is above market consensus of 51.8.
• German PMI Services slid to 56.4 in August, following a 56.7 reading the previous month and
above expectations of a decline to 55.5.
• British retail sales grew marginally by 0.1% in July at the slowest annual rate since November of
last year, while government failed to make much of an inroad into public borrowing.
• Investors worldwide poured $17.9 billion into stock funds and $3.1 billion into high-yield bond
funds in the week ended August 20, indicating a rebound in risk appetite, data from a Bank of
America Merrill Lynch Global Research report showed on Friday. The net inflows into stock
funds were the biggest since October 2013, while the inflows into high-yield bond funds were
the first in six weeks, according to the report, which also cited data from fund-tracker EPFR
Global. The inflows into funds that hold riskier assets came after investors pulled $16.3 billion
out of stock funds and a record $11.4 billion out of high-yield bond funds during the first week
of August amid selling pressure on the assets.

3. RETAIL RESEARCH
Global Indices Charts
Dow
FTSE
Shanghai
Commodities:
International crude oil prices (WTI) declined by 3.95% for the week ended 22
nd
Aug 2014 to close at
USD 93.65 per barrel. WTI crude oil fell as investors pushed geopolitical concerns surrounding
violence and unrest in Ukraine and Iraq to the back burner.
International gold prices fell by 2.73% for the week ended 22
nd
Aug 2014 to close at USD 1278.60 per
troy ounce. Gold prices fell on speculations that the Federal Reserve will increase interest rates
earlier than expected.
All the base metals on the LME ended positive for the week ended 22
nd
Aug 2014. Aluminium Alloy,
Aluminium, Copper, Lead, Nickel, Tin and Zinc rose by 2.99%, 3.60%, 3.39%, 2.29%, 0.81%, 0.11%
and 4.39% respectively. The base metals pack on the LME rose after a jump in US home building
increased speculation that demand is rising in the second- biggest user of industrial metals.
The Baltic dry index (BDI), which is a global index tracking the movement of cargo by the sea route
rose 4.53% for the week ended 22
nd
Aug 2014 to close at 1061. BDI is a number issued daily by the
London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides "an
assessment of the price of moving the major raw materials by sea”. Taking in 23 shipping routes
measured on a time charter basis, the index covers Handysize, Supramax, Panamax, and Capesize
dry bulk carriers carrying a range of commodities including coal, iron ore and grain.
Currencies:
The USD appreciated against the Euro by 1.21% for week ended 22
nd
Aug 2014. The euro fell against
the broadly stronger dollar as signs that the U.S. recovery is progressing underpinned dollar demand.
The dollar appreciated against the yen by 1.53% for the week ended 22
nd
Aug 2014. The dollar
extended its gains against the yen after the minutes of the latest meeting of the Federal Open
Market Committee minutes showed that FOMC members saw progress in the labor market and
inflation picking up such that conditions were returning to the normal levels of before the financial
crisis that peaked in 2008.
The USD appreciated against the Pound by 0.72% for the week ended 22
nd
Aug 2014. Weak wage
growth and its potential impact on monetary policy has put pressure on the pound in recent weeks,
as more investors pushed back their expectations of a rate hike into 2015. Also stronger signs that
the US economy is picking up has also put pressure on the pound
The US dollar depreciated against the rupee by 1.01% for the week ended 22
nd
Aug 2014. The rupee
was up against the US dollar, backed by positive sentiment in the local stock market and tracking
gains made by emerging market currencies against the dollar overseas.
Sectoral Analysis Aug 23, 2014
Key benchmark indices edged higher in the week ended Friday, 22 August 2014. Positive global cues,
softening of crude oil prices and speculation of an upward revision of India's sovereign rating
outlook by global rating agency S&P underpinned sentiment. The market logged gains in four out of
five trading sessions in the week just gone by. The BSE Mid-Cap and the BSE Small-Cap indices
outperformed the Sensex during the week.
In the week ended Friday, 22 August 2014, the 30-share S&P BSE Sensex gained 316.32 points or
1.21% to 26,419.55, its highest closing level since 19 August 2014. The barometer index, the S&P BSE
Sensex scaled record high of 26,530.67 in intraday trade on Thursday, 21 August 2014.
The 50-unit CNX Nifty rose 121.50 points or 1.55% to 7,913.20, a record closing high for the index.
The Nifty hit a record high of 7,929.05 in intraday trade on Friday, 22 August 2014.
The S&P BSE Mid-Cap index advanced 333.02 points or 3.69% to 9,340.87. The S&P BSE Small-Cap
index advanced 474.46 points or 4.83% to 10,298.52. Both these indices outperformed the Sensex.

4. RETAIL RESEARCH
Consumer Durables:
The BSE Consumer Durable index rose 5.59% to close at 9132 levels for the week ended 22
nd
August
2014. After the sharp rally in other sectors such as auto, bank, pharma, capital goods and IT
investors are now turning focus to customer discretionary shares. With the announcement of new
initiatives by the government to kick start economic growth investors expect that demand for
consumer durables will continue. Further, with the ensuing festive season consumer goods such as
air-conditioners, washing machines, televisions, jewellery and other home appliances are likely to
remain in demand. After a sluggish trend over the past 2-3 years demand for jewellery from the US
is like to pick up ahead of the Thanksgiving and Christmas season. Most of the big US retailers would
be placing orders well in advance as demand is likely to revive with economy showing signs of
growth. This was the reason of rise in prices of PC Jeweller and Rajesh Exports which rose by 22.68%
and 9.12% respectively. Other stocks which gained were TTK Prestige, Blue Star and Bajaj Electrical
which rose by 13.85%, 8.61% and 8.17% respectively.
Healthcare:
The BSE Healthcare index rose by 5.31% for the week ended 22
nd
Aug 2014 to close at 13190 levels.
The rally is driven by a strong operational performance during the recently concluded quarter and
weaker rupee against the dollar. Also pharma companies continued to take advantage of patent
expiration wave in the US and steady demand from emerging markets. Indian pharma companies
would continue to experience strong growth in the U.S. over the medium-term driven by the
sizeable generic opportunity (drugs with brand value of US$ 25-30 billion are expected to face
generic competition) over the next 2-3 years and strong product pipeline of pending ANDAs with
high increasing proportion of complex generics that compares favorably with generic majors such as
Teva, Mylan and Actavis. Some of the gainers in this index were, Cipla, Cadila Healthcare, Ranbaxy
Labs and Divi’s Lab which rose by 11.18%, 10.28%, 7.21% and 7.11% respectively. Glenmark
Pharmaceuticals rose by 2.25% during the week, as the company announced its forays into oncology
with discovery and initiation of an innovative bispecific antibody, GBR 1302 molecule.
Banks:
The BSE Bankex rose by 4.92% for the week ended 22
nd
Aug 2014 to close at 18100 levels. Bank
stocks rose after Prime Minister Narendra Modi announced a new financial scheme to help the poor
open bank accounts. Prime Minister Narendra Modi launched 'Pradhan Mantri Jan Dhan Yojana in
which the person who opens a bank account will get a debit card and the family will get Rs 1 lakh
insurance cover. This will help the family to tide over the unforeseen eventuality. Banking shares,
mainly PSUs, were in demand and trading higher also on reports that the Finance ministry will take
tough measures on rising scams in state-owned banks. Some of the gainers in this index were Kotak
Mahindra Bank, Punjab National Bank, Yes Bank, Federal Bank and State Bank of India which rose by
8.29%, 8.22%, 8.06%, 7.35% and 6.85% respectively.
Auto:
The BSE Auto index rose by 4.20% for the week ended 22
nd
Aug 2014 to close at 17034 levels. Auto
sales in India rose for the second straight month, according to July sales data released by individual
auto makers, suggesting that a recovery may have begun to take hold in the sector after a two-year
slump. Analyst expects the upcoming festive season to set the pace of demand recovery especially in
cars/two-wheelers, aided by pent up demand and macro recovery. Some of the gainers in this index
were Bosch, Bajaj Auto, Tata Motors and M&M which rose by 8.27%, 6.00%, 5.55% and 5.05%
respectively.
FMCG:
The BSE FMCG index fell 1.32% for the week ended 22
nd
Aug 2014 to close at 7170 levels. Shares of
index heavy weight like ITC and HUL were down by 3.66% and 1.36% respectively. Reports during
the week indicated that the Centre is planning to introduce tougher provisions under anti-tobacco
law to curb tobacco consumption in the country. After raising taxes on cigarettes and calling for a
countrywide ban on sale of tobacco products, the Centre is now planning to introduce tougher
provisions under law to curb tobacco consumption in the country. From banning branding on
cigarette packets to raising the age limit on tobacco consumption to 25 years from 18, to
substantively increasing penalties for smoking in public, the Union Health Ministry is considering a
host of amendments to the anti-tobacco law. Shares of Jubilant Foodworks rose by 15.16% on back
of two major foreign houses maintaining positive stance on the stock with one maintaining a buy
recommendation and other initiating coverage on the company.
Weekly Statistics
Sectoral Index - BSE Value % Chg
BSE Sensex 26420 +1.21
BSE Midcap 9341 +3.70
BSE Smallcap 10299 +4.83
BSE 500 10082 +2.28
BSE Auto 17034 +4.20
BSE Bankex 18100 +4.92
BSE Capital Goods 14874 +3.77
BSE Consumer Durable 9132 +5.59
BSE FMCG 7170 -1.32
BSE Health care 13190 +5.31
BSE IT 9948 +0.74
BSE Metals 12849 +0.58
BSE Oil and Gas 11081 +2.08
BSE Power 2106 +2.13
BSE PSU 8172 +3.48
BSE Realty 1822 +0.76
BSE Teck 5539 +0.79
Sectoral Index - NSE Value % Chg
S&P CNX Nifty 7913 +1.56
CNX Nifty Junior 16986 +3.82
S&P CNX 500 6352 +2.20
Bank Nifty 15819 +4.83
CNX IT 10543 +0.72

5. RETAIL RESEARCH
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