Stocks: In a holiday-truncated week the headline indices came under pressure, weighed down by losses in global markets and worries of a temporary business disruption due to GST rollout. After opening for the week at 31,194.68 points, the Sensex closed for the week at 30,921.61, losing 0.70 pct from previous Friday’s closing price. During the week, Sensex traded in the range of 30,680.66-31,294.96. The Nifty started the week at 9,594.05 and traded in the range of 9,448.75-45-9,615.40. The Nifty index finally closed at 9,520.90, down 0.56 pct from last Friday’s close. The global market sentiment was subdued as policy uncertainty heightened in the US, with the Senate Republicans being forced to delay vote on a crucial healthcare bill due to lack of support. Back home, the Finance Ministry has started notifying various provisions relating to interest calculation, input tax credit, and valuation, under the GST regime. The government has set interest rate at 18 pct for delayed tax payment, and 24 pct for excess claim of input credit or undue/excess reduction in tax liability. Also appeals and revisions, transitional provisions, and anti-profiteering rules have been notified, which will become effective from July 1.
The battered IT sector heaved a sigh of relief during the week as the US Citizen and Immigration Services (USCIS) announced that it was looking at the possibility of resuming premium processing of H1-B visas as ‘workload’ permits. The suspension of prioritized processing of H1-B visas in March, had affected the market sentiment on the IT sector. The market remained closed on Monday, June 26, due to Ramzan Id.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 314.18 crore during the week, as per Sebi’s record including the provisional figure of June 30. In the broader market, the S&P BSE Mid-Cap index rose 60.67 points or 0.42 percent to close at 14,644.48 and the S&P BSE Small-Cap index also rose 28.62 pts or 0.19 percent to end at 15,410.52. Both these indices underperformed the Sensex. Among sectoral and industry indices, Bankex fell by 1.28 per cent followed by capital goods 1.19 per cent, PSU 0.96 percent, Auto 0.87 percent and Oil&gas 0.77 per cent.
However, Metal rose by 3.53 percent, IPO 2.27 percent, FMCG 2.13 percent, Consumer Durables 1.23 percent, Healthcare 1.22 and Power 0.74 percent. Among the 31-share Sensex pack, 19 stocks declined and remaining 12 stocks fell during the week. Index lossers were, SBI 5.28 per cent, TataMtrDvr 4.55 per cent, Kotak Bank 3.20 per cent, Reliance 3.82 per cent, AsianPaint 3.81 per cent, Tata Motors 2.39 per cent, HDFC 2.09 percent, Larsen 2.05 percent, M&M 2.06 percent, HindUnilever 1.65 percent, HDFC Bank 1.48 percent, Adaniports 1.39 percent, and Bajaj Auto 1.04 percent.
While, Tata Steel climbed by 7.28 per cent followed by ITC 4.18 per cent, BhartiAirtel 3.62 per cent, Powergrid 2.65 percent, Cipla 2.47 percent, Axis Bk 2.28 percent, SunPharma 1.94 percent, Dr Reddy 1.53 percent and Wipro 0.74 percent.
The total turnover during the week on BSE fell to Rs 14,555.61 crs as against last weekend’s level of Rs 25,619.82 crores, While NSE dipped to 99,694.28 crores compared to Rs 1,13,637.69 crores previously.
Bullion: Tracking a weak trend overseas and easing demand from local jewellers, gold lost its sheen during the week at the bullion market and recorded a fall of Rs 170 in its prices to close at Rs 28,620 per ten grams.
Traders said apart from a weak trend overseas, fading demand from local jewellers and retailers at domestic markets, mainly attributed the fall in gold prices.
The bullion market remained closed on Monday on account of “Id-ul-Fitr” (Ramzan Eid).
However, silver recaptured the Rs 39,000-mark due to increased offtake by industrial units and coin makers.
In worldwide trade, gold prices settled lower this week, suffering from their first monthly decline since March, with a fourth straight weekly fall driven by a rise in global bond yields, which diminished appetite for precious metals.
A steadying US dollar and equity market and mostly upbeat economic data, added pressure to silver and gold futures for the session, but the yellow metal still finished the first half of the year with a gain of nearly 8 percent.
The yellow-metal fell about 1.1 per cent for the week and lost 2.6 per cent for the month. For the first six months of the year, however, it rose 7.9 per cent, while the white-metal declined to end the week down 0.1 per cent. For the month, it fell 4.4 percent, but notched 4 percent advance so far this year.
In the New York Comex trade, gold for August delivery fell to $1,242.30 an ounce compared to last Friday’s level of $1,256.40 and silver for Sept contract declined to close at $16.627 an ounce from July $16.647 last weekend.
On the domestic front, standard gold (99.5 purity) resumed lower at Rs 28,660 per 10 grams from last Friday’s closing level of Rs 28,790 and dipped further to Rs 28,635 before ending at Rs 28,620, revealing a loss of Rs 170, or 0.59 per cent.
Pure gold (99.9 purity) also commenced negative at Rs 28,810 per 10 grams compared to preceding weekend level of Rs 28,940 and dropped further to Rs 28,785 before finishing at Rs 28,770, showing a loss of Rs 170, or 0.59 per cent.
Silver ready (.999 fineness) opened positive at Rs 39,000 per kilo from its previous weekend level of Rs 38,960, later rose to a high of Rs 39,500, before ending at Rs 39,080, registering a rise of Rs 120 per kilo, or 0.31 percent.