Sensex, Nifty lock fresh peak for the Week

Indian stock markets rose nearly 4% led by comments from International Monetary Fund and ECB stimulus which pushed markets to mark fresh record closing high.

Major Headlines for the week:

FM Jaitley to present FY16 budget on February 28

ITC Q3: Big Miss on Topline

HUL Q3 net profit up 18% (YoY)

Indian Indices:

Welcome to the ‘Weekly Market Wrap’ for January 23, 2014 with International Monetary Fund (IMF) on 19 January 2015, announcing India’s economy will be world’s fastest-growing major economy in the year through March 2017, the European Central Bank (ECB) announcing a massive new bond-buying program on 22 January 2015, buying of Indian stocks by the foreign portfolio investors and positive outlook on the future of Indian economy propelled key benchmark indices to their record high. The barometer index, the S&P BSE Sensex marched past the 29,000 level for the first time in the history. The market gained in all the five trading sessions of the week.

Buying of Indian stocks by the foreign portfolio investors and positive outlook on the future of Indian economy propelled key benchmark indices to their record high.

The S&P BSE Sensex marched past the 29,000 level for the first time in the history. The market gained in all the five trading sessions of the week.

The S&P BSE Mid-Cap index rose 0.58% and S&P BSE Small-Cap index gained 0.49%. Both these indices underperformed the Sensex.

S&P BSE Sensex surged 1,156.95 points or 4.11% to settle at 29,278.84, a record closing high for the index while CNX Nifty jumped 321.80 points or 3.77% to settle at 8,835.60, a record closing high for the index.

Weekly market trend from January 19 – January 23:

Jan 19: India’s NSE Nifty Futures rose for a third consecutive session on Monday to mark its highest level in nearly 1-1/2 months as Wipro surged on strong earnings while lenders gained on continued optimism the central bank’s surprise rate cut last week would revive credit growth. The S&P BSE Sensex and CNX Nifty ended 0.50% and 0.43% higher each.

Jan 20: Indian shares surged to a record high on Tuesday as metals stocks advanced after China’s economic growth data came in slightly better than expected, while blue chips were underpinned by widespread confidence about the domestic economy. The S&P BSE Sensex and CNX Nifty ended 1.85% and 1.69% higher each.

Jan 21: Indian shares edged higher, hitting a record high for the second consecutive day and gaining for the fifth straight session, as blue-chips rose on hopes of additional monetary policy easing, while strong regional markets also helped. The S&P BSE Sensex and CNX Nifty ended 0.36% and 0.39% higher each.

Jan 22: Indian shares hit record highs for the third straight day on Thursday, led by blue-chips, tracking firm trends across the region and on optimism that the government will continue with the reform agenda. The S&P BSE Sensex and CNX Nifty ended 0.41% and 0.37% higher each.

Jan 23: Indian shares rose to a record high for a fourth consecutive session on Friday as blue chips such as Larsen & Toubro advanced on hopes of additional foreign investments after the European Central Bank launched a landmark bond-buying stimulus programme. The S&P BSE Sensex and CNX Nifty ended 0.94% and 0.85% higher each.

Global indices:

Majority of the Global markets ended in green barring Shanghai Composite fell 0.73%. Topmost Gainers: CAC 40 up 3.95%, Nikkei up 3.84%, FTSE 100 up 3.76%, Hang Seng up 3.10% and Dax 100 up 2.63%.

Sectoral and stock screening:

All the sectors ended in green. Topmost sectors: S&P BSE CG up 5.04%, S&P BSE Metal up 4.55%, S&P BSE Bankex up 4.37 up, S&P BSE HC up 4.11% and S&P BSE Auto up 4.04%.

Looking at the ‘A’ group stocks, the top three gainers of the week were: SPARC up 68.36%, GSFC up 18.76%, Dish TV up 15.43%.

Top three losers of the week were: M&M Financial Services down 18.30%, PMC Fincorp down 17.74%, Natco Pharma 10.79%.

FII/MF activity:

The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs3867.26 crore whereas the domestic investors sold the Indian shares worth a net of Rs45.90 crore as on January 24, 2015.

Market Outlook for the coming week!

In the coming week, trend in global markets, Q3 results of India Inc., outcome of Federal Reserve’s meeting, elections in Greece, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar, and crude oil price movement will dictate trend on the bourses in a truncated trading week.

The stock markets remain closed on Monday, 26 January 2015, on account of Republic Day.

The market may remain volatile next week as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contract expire on Thursday, January 29, 2015.
 
Investors’ focus will remain on further policy announcements, if any, by the government.

PSU OMCs, auto and airline stocks will be in focus as state run oil marketing companies will review fuel prices on the last day and during the middle of the month based on the average imported oil price in the preceding fortnight.

In US, the Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on Tuesday, 27 January and Wednesday, 28 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.

The Committee at that time saw this guidance as consistent with its previous statement that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program in October, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

Nifty Futures

niftyfutures.org@imediaone.com

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