Market scaled fresh lifetime highs, but surrendered most of the gains on profit-booking towards the end of the week on IMF report about slowdown in Indian economy due to "international factors".
Both the bellwether indices, Sensex and Nifty, failed to maintain their all-time highs despite sustained capital inflows. Brokers attributed the rally to investor hopes of a stable government after the forthcoming general elections and economy returning to high growth path. The Reserve Bank of India (RBI), at its April 1 policy meet, left the short-term lending rate, or repo, unchanged at 8 percent and cash reserve ratio at 4 percent. Brokers said the RBI's decision was largely in line with investor expectations and failed to have any major immediate effect on the market.
Foreign institutional investors (FIIs) continued their buying spree, acquiring shares worth a net Rs 5,124.66 crore during the week, including the provisional figure of April 4, as per SEBI data. Realty, consumer durable, metal, pharma, refinery and IT counters attracted good buying interest while FMCG, banking and capital goods stocks suffered losses. Bank stocks fell after the Reserve Bank of India (RBI) clarified that the option for spreading the mark-to-market losses over the three quarters ended on March 31, 2014 and no further extension was allowed,
Key Global Events
Japan investment in Southeast Asia surges amid China slump - Japanese companies' investments in Southeast Asia surged last year to almost three times the amount invested in China, after relations between Beijing and Tokyo soured in 2012 and Chinese labour costs rose; a government agency of Japan said on Friday.
Payrolls Rose in Most U.S. States in March, Led by Florida - Florida led the nation with a 22,900 increase in payrolls, followed by North Carolina with 19,400 more jobs, figures from the Labor Department showed today in Washington. Ohio registered among the biggest declines in joblessness. Gains in hiring will probably help lift consumer confidence and spur household spending, which accounts for almost 70 percent of the economy. The Federal Reserve, in its latest Beige Book review of regional conditions, said the labor market was “generally positive.”
Fortnightly Headlines
1) JSW Steel in talks to buy Welspun unit: reports.
2) Welspun chairman BK Goenka denied that talks were currently on.
3) GlaxoSmithKline Pharma Q1 net profit at Rs965.40 mn.
4) Lok Sabha Elections: Sixth phase to begin on Monday.
5) First process patent granted to Insecticides (India).
6) SAIL Durgapur adds 1-MT refining capacity new Ladle Furnace.
7) Alstom awarded contract by BHEL for the 2x660 MW Banharpalli coal power plant.
8) Liberty Shoes FY 2014 profit zooms 166%.
9) BJP-led NDA will favour India's business interest: Narendra Modi.
10) Glenmark has received from Sanofi already USD 50 Mn as an upfront payment in FY2011-12.
11) Reliance Industries Ltd has posted a net profit of Rs. 56310 mn for the quarter ended March 31, 2014 as compared to Rs. 55890 mn for the quarter ended March 31, 2013.
12) Infosys Senior VP Nithyanandan Radhakrishnan resigns.
13) Tata Sons plans to raise funds.
Read detail analysis report here: - http://www.flixya.com/blog/5745361/Foreign-institutional-investors-FIIs-continued-their-buying-spree
Both the bellwether indices, Sensex and Nifty, failed to maintain their all-time highs despite sustained capital inflows. Brokers attributed the rally to investor hopes of a stable government after the forthcoming general elections and economy returning to high growth path. The Reserve Bank of India (RBI), at its April 1 policy meet, left the short-term lending rate, or repo, unchanged at 8 percent and cash reserve ratio at 4 percent. Brokers said the RBI's decision was largely in line with investor expectations and failed to have any major immediate effect on the market.
Foreign institutional investors (FIIs) continued their buying spree, acquiring shares worth a net Rs 5,124.66 crore during the week, including the provisional figure of April 4, as per SEBI data. Realty, consumer durable, metal, pharma, refinery and IT counters attracted good buying interest while FMCG, banking and capital goods stocks suffered losses. Bank stocks fell after the Reserve Bank of India (RBI) clarified that the option for spreading the mark-to-market losses over the three quarters ended on March 31, 2014 and no further extension was allowed,
Key Global Events
Japan investment in Southeast Asia surges amid China slump - Japanese companies' investments in Southeast Asia surged last year to almost three times the amount invested in China, after relations between Beijing and Tokyo soured in 2012 and Chinese labour costs rose; a government agency of Japan said on Friday.
Payrolls Rose in Most U.S. States in March, Led by Florida - Florida led the nation with a 22,900 increase in payrolls, followed by North Carolina with 19,400 more jobs, figures from the Labor Department showed today in Washington. Ohio registered among the biggest declines in joblessness. Gains in hiring will probably help lift consumer confidence and spur household spending, which accounts for almost 70 percent of the economy. The Federal Reserve, in its latest Beige Book review of regional conditions, said the labor market was “generally positive.”
Fortnightly Headlines
1) JSW Steel in talks to buy Welspun unit: reports.
2) Welspun chairman BK Goenka denied that talks were currently on.
3) GlaxoSmithKline Pharma Q1 net profit at Rs965.40 mn.
4) Lok Sabha Elections: Sixth phase to begin on Monday.
5) First process patent granted to Insecticides (India).
6) SAIL Durgapur adds 1-MT refining capacity new Ladle Furnace.
7) Alstom awarded contract by BHEL for the 2x660 MW Banharpalli coal power plant.
8) Liberty Shoes FY 2014 profit zooms 166%.
9) BJP-led NDA will favour India's business interest: Narendra Modi.
10) Glenmark has received from Sanofi already USD 50 Mn as an upfront payment in FY2011-12.
11) Reliance Industries Ltd has posted a net profit of Rs. 56310 mn for the quarter ended March 31, 2014 as compared to Rs. 55890 mn for the quarter ended March 31, 2013.
12) Infosys Senior VP Nithyanandan Radhakrishnan resigns.
13) Tata Sons plans to raise funds.
Read detail analysis report here: - http://www.flixya.com/blog/5745361/Foreign-institutional-investors-FIIs-continued-their-buying-spree
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