1. Weekly review: Sensex gains 408.31 points on value buying

Weekly review: Sensex gains 408.31 points on value buying

During Sept 4 and Sept 11, Sensex gained 408.31 points while Nifty closed the week 134.25 points higher at 7,789.30.

By: | New Delhi | Published: September 12, 2015 9:13 AM
Sensex and Nifty

BSE Sensex and NSE Nifty snapped four week losing streak as PM Narendra Modi’s meeting with the India Inc, short coverings, value buying amid key decisions taken by the Cabinet supported market sentiments for the week ended September 11. (Reuters)

The BSE Sensex and NSE Nifty snapped four week losing streak as PM Narendra Modi’s meeting with the India Inc, short coverings, value buying amid key decisions taken by the Cabinet supported market sentiments for the week ended September 11. During Sept 4 and Sept 11, Sensex gained 408.31 points, or 1.62 per cent, at 25,610.21 while Nifty closed the week 134.25 points, or 1.75 per cent, higher at 7,789.30.

Barring the Consumer Durables index (down 1.31 per cent), BSE FMCG index (down 1.30 per cent) and BSE Healthcare index (down 1.26 per cent), all other sectoral indices on the Bombay Stock Exchange ended in green. The BSE Auto index surged the most — 3.91 per cent at 17,647.98, followed by BSE Realty index (up 3.75 per cent at 1,288.86), BSE Capital Goods index (up 3.36 per cent at 1,5951.38) and BSE Power index (up 3.23 per cent at 1,785.80).

Vinita Mahnot, equity research analyst, Hem Securities, said, “Prime Minister meeting with industrialists, low level buying and short covering helped markets to jump over 1.5 per cent during the week.”

Dipen Shah, head of private client group research, Kotak Securities, said, “Markets ended the week with gains of around 2 per cent on benchmark indices. The gains came on the back of stability in global markets, especially China. The Chinese Premier calmed sentiments during the week, which helped stabilise markets. The postponement of GST was taken in the stride.”

According to National Security Depository Ltd (NDSL) data, foreign institutional investors remained net sellers in the equity markets last week as they sold shares worth Rs 3,010.65 crore during the period.

In the BSE 100 index, Power Grid Corporation of India, IDFC, Crompton Greaves, Mahindra & Mahindra Financial Services, ICICI Bank, Mahindra & Mahindra, Hindalco, Tata Power and State Bank of India were some the companies which touched their new 52-week low during the week.

During the week gone by, Director General Safeguards (DGS) recommended 20 per cent safeguard duty on steel imports, which gave much needed relief to the entire steel sector to safe guard against cheap imports from China, South Korea and Japan. Handsome growth of 36 per cent in the month of August in Indirect Tax collection growth raised the hopes for 7 per cent plus growth rate for the year. Factory output figures (IIP data) which came after market hours on Friday grew 4.2 per cent in July against 0.9 per cent a year ago.

On the IIP data, Debopam Chaudhuri, chief economist, ZyFin Research, said, “This is a positive surprise with the general expectations being around 3.5 per cent.”

The major event next week is the US Fed meeting. There is uncertainty in global market on whether the US Federal Reserve’s first interest rate hike in a decade will come at Fed’s monetary policy meeting next week. According to market experts, a hike in interest rate in the US is likely to drain liquidity from emerging markets like India and redirect it to developed economies.

For the next week, Jimeet Modi, CEO, SAMCO Securities, said, “The coming week shall be volatile due to Fed meeting and traders can remain on the sidelines and wait till the outcome is discounted.”

  1. H
    Harry Potter
    Sep 15, 2015 at 11:56 am
    Today's Sep, 2015 trade at 12:09 pm L&T down by 2.5 percent. Thanks to Modi-Wave, steepest rise in LnT stock in last 5 years is from Rs 722 (Aug 30, 2013) to Rs 1745 (July 4,2 014) apiece, a big cushion (shock absorption) of nearly Rs 1000 per share . LnT top-bres were on selling spree, leading the pack Chairman Mr Naik sold his LnT shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results LnT plunged by 8 %, biggest intraday decline since July 2009. Post Q2 results LnT share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Post Q3 - 2014 results another big intra-day fall of 7.44 per cent. Post Q1 2015 stumbled by 5 per cent in early hours trade, Q1 profit tanked 37 per cent. Average lows of last 12 years (Jan to Dec, 2004 till 2012) Rs 622. Average of peaks (highs) of last 12 years (Jan to Dec, 2004 till 2012) is Rs 1124 apiece. Average of valleys (lows) of last 12 years (Sep 4 as reference day) is Rs 900 apiece. G Average of above three numbers is Rs 882 apiece. Some inherent malignancies in businesses – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs5k crores stagnating investment in Defence. Very expensive, old and aging CXO/MD potion of septuagenarians, leading the pack 73 yrs old Junior Engineer turned Executive Chairman Mr Naik has completed 50 yrs with same company. Would it hit 3 year low 722 post Q2-2015 results?
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