Friday, January 27, 2012

Weekly-market: Market up 3%, registers fourth straight weekly rise

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January 27, 2012

 Market Commentary 

Market up 3%, registers fourth straight weekly rise

The Indian markets stood positive for the fourth consecutive week. The Sensex rose 2.96% and the Nifty up 3.09%


Major news for the week:

Indian indices
The Indian markets closed higher for the fourth straight week. The biggest surprise this week was a cut in CRR by the RBI in its Third Quarter Monetary Policy. The RBI's move boosted investor confidence in the market and also better-than-expected earnings back home, appreciation in rupee added to the positive tone. Heavy inflow of foreign money provided major support this week. Stabilisation in the Europe and gradual improvement in the US economic data further helped markets.

The Sensex swung 600 points between a weekly high of 17259 and a low of 16659 and closed the week higher by 495 points or 2.96% at 17234. The Nifty swung 196 points between a weekly high of 5217 and a low of 5021 and closed the week higher by 156 points or 3.09% at 5205.

Global indices
All the global indices closed the week higher. The Sensex was the best performer of the week surging by 2.96%, followed by DAX up by 2.12%, Hang Seng advanced by 1.95% and CAC40 up by 1.26%. Shanghai Composite remained shut for the whole week.

Sectoral and stock screening
All the sectoral indices closed the week on a positive note except BSE Realty down by 0.28%. Top gainers of the week - BSE CG advanced by 5.64%, BSE TECk rose by 5.18% and BSE Auto surged by 4.29%. 

 

Coming to 'A' group stocks, top three gainers of the week - JSW Energy jumped by 22.15%, Essar Oil advanced by 20.21% and Sintex Industries rose by 16.50%. Top three losers of the week - Alstom Projects India slipped by 6.74%, Hero MotoCorp declined by 6.61% and United Breweries down by 6%.

FII/MF activity 
The foreign institutional investors (FIIs) were the net buyers of the Indian stocks this week to the tune of Rs3066 crore. The domestic investors sold Indian shares worth a net of Rs268 crore during the week till January 25, 2012. 

 

TOP MOVERS (GROUP A) 
Company Price (Rs) % chg
Gainers
JSW Energy

52.95

22.15

Essar Oil

62.45

20.21

Sintex Industries

83.30

16.50

Losers
Alstom Projects India

354.05

-6.74

Hero MotoCorp

1821.85

-6.61

United Breweries

415.10

6.00


 FII/MF ACTIVITIES

Rs (cr)

FII

MF*

Gross purchase 12,000 1,845
Gross sale

8,934

2,114

Net investment

3,066

-268

*As on January 25, 2012

Outlook
The quarterly earnings will continue to pour in and may provide future course of direction for the markets. Auto and cement stocks will be focus as the companies from these two sectors will start releasing monthly sales data for January 2012 from Wednesday (February 01, 2012). The share buyback programme of Reliance Industries (RIL) will begin on February 01, 2012 and close on January 19, 2013. Changes in the external environment, mainly in the Europe and US may have some bearing on the markets. 

    

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Pre-market: Markets may open in green

January 27, 2012 | 8.30 AM

Markets may open in green
The start is likely to be on a higher note inline with the positive Asian cues.
Headlines for the day
  • Dr Reddy's Laboratories in spot with US health regulator again
  • NTPC power project in Karnataka gets MoEF nod
  • JSPL to spend $600 mn on new unit in Bolivia 
  • Finance Ministry for higher excise duty on diesel cars
  • Government may introduce Micro-finance Bill in Budget Session
 
Events for the day
  • Release of weekly inflation data
  • Results: Bank of India, BHEL, Canara Bank, NHPC, NTPC, Petronet LNG

 

 STOCK TO WATCH
n BOI n NTPC
n BHEL n  CANARA
n PETRONET nNHPC

 FOREX

Currency

Level

USD to INR

50.04

GBP to INR

78.41

Euro to INR

65.54

JPY to INR

0.65

INDIAN INDICES

Indices

Support Resistance
Sensex

16900

17200

Nifty

5100

5196

The Indian markets may begin the last session of the week in the green zone led by positive Asian cues. The global markets are positive on risky assets, with the Fed, as well as other major central banks, willing to provide support through their policy actions.

Back home, weekly inflation data will be released today. Earnings will also continue to pour in. Other companies results today - GSFC, Karur Vysya Bank, Sundaram Finance, Pfizer, Gujarat Alkalies & Chemicals, Wyeth, Redington, Savita Oil Technologies, Jyoti Structures, Tata Sponge Iron and Bharat Electronics.

FII/MF ACTIVITIES

As on 25-01-2012

FII
(Rs cr)
MF*
(Rs cr)
Gross purchase

2997.70

485.10

Gross sale

2088.50

642.40

Net investment

909.10

(157.30)

*As on 23-01-2012

Daily trend of FII/MF investment in equities
The FIIs have been net buyers of the Indian stocks to the tune of Rs909.10 crore on January 25, 2012. The domestic investors have sold Indian stocks worth a net of Rs157.30 crore on January 23, 2012. The data is as per SEBI website.

GLOBAL INDICES

The European shares hit a six-month high on Thursday (January 26, 2012), boosted by cyclical stocks such as miners and banks, as strong data from the United States and the overnight US Federal Reserve commitment to an easy monetary policy boosted market sentiment.

A month-long rally on Wall Street appears to be sputtering as stocks slipped on Thursday in what investors called a possible warning of weakness ahead

The Asian markets were trading in the green on Friday (January 27, 2012). However, SGX Nifty was trading 15 points down. Shanghai Composite remained shut.

Commodity cues
US Crude Oil rose on Thursday a day after the Federal Reserve said interest rates should remain low well into 2014 and data showed an increase in orders for U. manufactured goods. That news sparked buying interest in riskier assets such as oil and other commodities.

 COMMODITIES

Commodity

Level ($)

Chg ($)

Gold

1726.70

26.60

Silver

33.74

0.62

Crude

99.70

0.30


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Sharekhan Ltd. Regd Add: 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai - 400 042, Maharashtra. Tel: 022 - 61150000. BSE Cash-INB011073351; F&O-INF011073351; NSE - INB/INF231073330; CD - INE231073330; MCX Stock Exchange : CD - INE261073330 DP: NSDL-IN-DP-NSDL-233-2003; CDSL-IN-DP-CDSL-271-2004; PMS INP000000662; Mutual Fund: ARN 20669.

"This document has been prepared by Sharekhan Ltd. This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. Kindly note that this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. SHAREKHAN will not treat recipients as customers by virtue of their receiving this report.
The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees ("SHAREKHAN and affiliates") are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do not undertake to advise you as to any change of our views. Affiliates of Sharekhan may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. 
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject SHAREKHAN and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
SHAREKHAN & affiliates may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. SHAREKHAN may from time to time solicit from, or perform investment banking, or other services for, any company mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. Any comments or statements made herein are those of the analyst and do not necessarily reflect those of SHAREKHAN."

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