Markets continued their upmove in the passing week despite a
big fall in the beginning and some consolidation in the latter part. Hopes of
another rate cut following some better than expected macro economic data led the
markets to their more than two years high during the week. Foreign fund inflow
and traders optimism for the Indian equity markets kept the momentum going,
making another week of gains. Though, the start was not so impressive and
markets were butchered with benchmarks even losing their long held crucial
levels, despite consumer prices index (CPI) Inflation for April 2013 slipping
into single digit at 9.39%, as compared to 10.39% final inflation number for the
previous month of March 2013. It was the trade deficit numbers that spoiled the
party, as India's April trade deficit rose to $17.8 billion on account of
massive surge in imports of cheaper gold and silvers. The banking sector took a
hit after RBI's investigation report, pointed out at major anomalies in banks
named in the Cobrapost expose. After the sudden and sharp fall, the markets took
a breather next day and despite the Wholesale Price Index (WPI) inflation
slowing down to its lowest since 2009 at 4.89% (Provisional) for the month of
April, 2013 as compared to 5.96% (Provisional) for the previous month and 7.50%
during the corresponding month of the previous year, traders remained on
sidelines. But the dooms scenario got reversed on Wednesday when markets ralled
fervently, taking the benchmark to their 28 months high. Rate sensitives' took
the lead after the Reserve Bank of India's Governor Duvvuri Subbarao said that
the central bank will take note of falling inflation when discussing potential
interest rate cuts. There were some positive part played by the government too,
as the Finance Minister P. Chidambaram said that he would set up a cell in his
office to monitor and resolve the issues for speedy completion of the stalled
infrastructure projects. The last two days of the week were of consolidation but
still the markets managed to snap another week of gains, higher by over a
percent.
BSE movement for the week
The Bombay Stock Exchange (BSE) Sensex surged 203.50 points or
1.01% to 20286.12 during the week ended May 17, 2013. The BSE Mid-cap index was
up by 94.69 points or 1.45% to 6613.98 and the Small-cap index up by 32.85
points or 0.53% to 6199.19. On the sectoral front, Realty up by 113.44 points or
5.91% at 2032.03, Health Care (HC) up by 395.51 points or 4.51% at 9164.19,
Capital Goods (CG) up by 432.30 points or 4.33% at 10423.08, Bankex up by 630.63
points or 4.32% at 15214.45 and Power up by 68.18 points or 3.84% at 1844.29
were major gainers on the BSE sectoral space, while FMCG down 172.82 points or
2.52% at 6682.57, IT down 126.07 points or 2.08% at 5946.56, TECk down 63.77
points or 1.74% at 3594.36, Consumer Durables (CD) down 129.70 points or 1.69%
at 7542.41 and Auto down 61.04 points or 0.54% at 11202.29 were top losers on
the BSE sectoral front.
NSE movement for the week
The Nifty climbed by 92.55 points or 1.52% to 6187.30.
On the National Stock Exchange (NSE), Bank Nifty up by 564.80 points or 4.43% to
13317.10, CNX IT down by 108.80 points or 1.69% to 6331.05, while CNX mid-cap up
by 177.20 points or 2.21% to 8186.65 and CNX Nifty Junior up by 306.70 points or
2.47% to 12737.55.
FII transactions during the week
Foreign Institutional Investors (FIIs) were net buyers in
equity segment in the week with gross purchases of Rs 15167.80 crore and gross
sales of 10699.90 crore, leading to a net inflow of Rs 4467.90 crore. They stood
as net buyers in the debt segment as well with gross purchases of Rs 4371.70
crore against gross sales of Rs 4000.70 crore, resulting in a net inflow of Rs
371.00 crore.
Outlook for the coming
week
Markets extended their winning streak for yet another week.
Both, benchmark equity indices BSE's Sensex and NSE's Nifty, concluded above the
psychological 20,200 and 6150 levels respectively.
In the coming week, traders will be eyeing the development in
coal and power sector, as an Inter-Ministerial Committee (IMC) is likely to take
a call on applications from the government companies /corporations for
allocation of 17 coal blocks on May 23. NTPC, Neyveli Lignite Corporation and
MOIL are among the companies that have applied for the coal blocks.
FII flows will be a key data to watch for in the coming week
after benchmark equity indices soared to two years high in the passing week.
FIIs have been net buyers for 21 consecutive sessions, bringing in a net of
about $13 billion in 2013. Additionally, investor's would also track updates on
monsoon, which could provide near term guidance to equity markets.
Among key earnings, Venus Remedies, Apollo Hospitals, City
Union Bank, Coal India, SREI Infra, PC Jeweller and Shriram City Union, Subex,
Tech Mahindra, BHEL and Hindustan Copper will report their results next
week.
In the coming week, investors could see more companies diluting
their promoter's stake in order to fulfill SEBI's minimum public share holding
norms. As per the norms stipulated by the Securities and Exchange Board of India
(Sebi), privately promoted companies are expected to have a public shareholding
at 25% by June 2013, while the same for the state-run listed companies has been
relaxed to 10 per cent, which has to be met by August 2013. Meanwhile, there
will be some buzz in the primary market too as the local search engine Just
Dial's initial public offer (IPO) will open for bidding on Monday, 20 May 2013.
The price band for the IPO has been fixed at Rs 470 to Rs 543 per share.
