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| Market Commentary
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Weak domestic, global cues drag Indian mkts for 2nd Week | |
Benchmarks edged lower in the week gone by as uptick in CPI in November 2013 raised the likelihood of the RBI hiking lending rate. The Sensex fell 1.34% while the Nifty slipped 1.46% for the week ended December 13, 2013.
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 Major Headlines for the week:
Indian indices:
Welcome to the 'Weekly Market Wrap' for December 13, 2013. The market fell for second as the Sensex marked its biggest weekly fall in nearly a month, as rate-sensitive stocks such as ICICI Bank slumped on caution ahead of the RBI's policy review and the U.S. Federal Reserve meet next week to decide the course of its monetary stimulus. The S&P BSE Mid-Cap index fell 1.35% and the S&P BSE Small-Cap index fell 1.52%. Both these indices underperformed the Sensex.
Key benchmark indices edged lower in the week gone by as gains triggered by strong performance of Bharatiya Janata Party (BJP) in assembly elections were washed away by heightened speculation that the Federal Reserve may be about to start cutting back on its stimulus program. The Sensex and the 50-unit CNX Nifty, both, hit their record highs on intraday as well as highest closing level in the beginning of the week. The market retreated from record high amd slipped in four out of five trading sessions of the week.
The S&P BSE Sensex fell 280.95 points to 20,715.58. Nifty fell 91.50 points to 6,168.40.
Major events:
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Trade deficit for November stood at $9.23bn against $10.56bn (M-o-M), down 16.3%, on back of lower imports. Trade deficit figures for November were lowest since March 2011. Exports rose 5.86% to $24.61bn while Gold, silver imports fell to $1 bn against $5.4 bn (Y-o-Y). Crude imports narrowed to $12.9bn vs $15 bn (M-o-M).
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The Index of Industrial production (IIP) data declined by 1.8%, lower than expected numbers were attributed to a decline in both the manufacturing and mining sectors and the Consumer Price Index (CPI) which climbed to 11.24% for November.
Weekly market trend from December 09, 2013 - December 13, 2013:
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Indian shares rose to a record high on December 09, 2013, after the main opposition party secured an absolute majority in three out of four states according to election results out on Sunday. The BSE Sensex rose 1.57% and the Nifty was up by 1.66%. Key benchmark share indices surged on Monday to record their highest level, after main opposition party BJP, widely seen by investors as being more business friendly, swept three out of four key state elections held since last month. The Sensex closed at 21326.42, up by 329.89 points, while the Nifty rose by 104 points to close at 6363.90.
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On Tuesday (December 10, 2013); the S&P BSE Sensex retreated from a record high of 21483.74 hit on Monday post state election results as investors booked profits. The BSE Sensex fell 0.33% and the Nifty was down by 0.49%. Profit taking at higher levels in blue chips companies after strong gains in past three sessions pulled the market lower. The S&P BSE Sensex shed 71.16 points to close at 21,255.26 while Nifty slipped 31.05 points to end at 6332.85.
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Benchmarks fell for second consecutive session on Wednesday (December 11, 2013), on profit taking after record highs hit on Monday. The BSE Sensex and CNX Nifty were down by 0.39% respectively. further, markets shrugged off the improvement in November trade deficit data. The S&P BSE Sensex shed 83.85 points to close at 21171.41 while Nifty slipped 24.95 points to end at 6307.90.
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On Thursday (December 12, 2013), the India's benchmarks end in red for 3rd consecutive session ahead of key economic data set to be released later in the day. The BSE Sensex fell 1.16% and the Nifty was down by 1.12%. Indian markets ended the session with sharp decline for the third day amid weak global cues, after investors turned cautious ahead of key economic data and booked profits in rate sensitive shares. The Sensex shed 245.80 points to close at 20925.61 while Nifty slipped 70.85 points to end at 6237.05.
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Indian shares fell for 4th straight day on fears of rate hike by the central bank next week after consumer price inflation in November remained in double digits. The BSE Sensex slipped 1.00% and the Nifty was down by 1.10%. Markets witnessed another weak trading session as rate sensitive stocks slumped after sharply higher food prices drove up retail inflation to 11.24% in November raising expectations of a rate hike by the central bank  when it meets on December 18 for monetary policy review. The S&P BSE Sensex shed 210.03 points to close at 20715.58 while Nifty slipped 68.65 points to end at 6168.40.
Global indices:
Majority of the global markets closed on a negative note except Nikkei which gained 0.67%. Topmost Losers of the week: Hang Seng dropped by 2.09%, Shanghai Composite fell by 1.83% and Dow Jones lost 1.75%.
 Sectoral and stock screening:
Majority of Sectors ended in red, barring S&P BSE IT which jumped by 1.61%, S&P BSE gained by 0.81% and S&P BSE FMCG rose 0.29%. Top losers - S&P BSE Power plunged by 4.60%, S&P BSE PSU declined by 4.34% and S&P BSE CG dropped by 4.15%.
| | Looking at the 'A' group stocks, the top three gainers of the week were - Oberoi Realty up by 13.89%, OBC rose 10.01% and MRF up by 9.94%. The top three losers of the week were - Torrent Power fell by 11.61%, Wockhardt slipped by 11.61% and MCX dipped by 10.95%.
FII/MF activity
The foreign institutional investors (FIIs) have been the net buyers of the Indian stocks to the tune of Rs4788.50 crore as on December 11, 2013 and the domestic investors sold Indian shares worth a net of Rs276.50 crore as on December 09, 2013.
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TOP MOVERS (GROUP A) |  |
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Oberoi Realty | 211.20
| 13.89 | |
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| Torrent Power |
109.25 | -11.61
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FII/MF ACTIVITIES | |
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| Gross purchase |
15,527 | 448 | |
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| Net investment |
4,788 |
-276 | | | | | |
| | *Data as on December 11, 2013
**Data as on December 09, 2013
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Market Outlook for the coming week!
In the coming week, corporate advance tax payment for Q3 December 2013, data on inflation based on the wholesale price index, outcome of the ongoing Winter Session of the Parliament, outcome of the Reserve Bank of India's mid-quarter monetary policy review and outcome of the two-day policy meeting of the Federal Open Market Committee will dictate near term trend on the domestic bourses. Trend in investment by foreign institutional investors, trend in other global emerging markets and the movement of rupee against the dollar hold key.
Corporate advance tax payment for the third installment which is due by Sunday, December 15, 2013, could provide clues on Q3 December 2013 corporate earnings.
The government will unveil data on inflation based on the wholesale price index (WPI) for November 2013 on Monday, December 16, 2013.
The Reserve Bank of India (RBI) announces next Mid-Quarter Review of Monetary Policy for 2013-14 on Wednesday, December 18, 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on December 17-18, 2013.
The Bank of Japan (BoJ), which buys more than 7 trillion yen ($67.6 billion) of Japanese Government Bonds (JGBs) every month in its bid to stoke inflation, holds a two-day monetary policy meeting on December 19 and 20, 2013.
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