We had mentioned in last week’s closing report that Nifty, Sensex were getting overbought. The major indices of the Indian stock markets, despite volatility, closed the week on Friday with small gains over last week’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
Positive domestic macro-economic data and a strong rupee cheered the Indian equity markets on Monday. Investors' sentiments were buoyed by official data released after market hours on Friday -- Wholesale Price Index (WPI) and Consumer Price Index (CPI) -- which showed that inflation eased in April. The data on annual rate of inflation was calculated on a revised base year of 2011-12. However, India's factory output growth slowed to 2.7% in March on the back of poor manufacturing performance in the new Index of Industrial Production (IIP) with revised base year of 2011-12. The key indices traded with gains of close to half a per cent each during the mid-afternoon trade session, as buying was witnessed in banking, metal and healthcare stocks.
Private sector lender ICICI Bank on Monday said that it has reduced interest rates by up to 30 basis points (bps) for home loans of up to Rs30 lakh. "With this reduction, salaried borrowers can avail home loans at among the lowest rates in the industry. Salaried women borrowers will get home loans at 8.35% and others at 8.40%," the private sector lender said in a statement. According to ICICI Bank, customers from economically weaker section (EWS) and low income group (LIG) can avail the dual benefit of low interest rates and credit linked subsidy under the Pradhan Mantri Awas Yojana. ICICI Bank shares closed at Rs302.05, up 1.82% on the BSE.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) crossed the 9,500-mark for the first time during the mid-afternoon trade session on Tuesday. Around 2 p.m., the NSE Nifty traded at 9,503.50 points -- up 58.10 points or 0.62%. According to market observers, positive global cues, coupled with healthy macro-economic data and expectations of a normal monsoon lifted the Indian equity markets to record high levels intra-day. Healthy macroeconomic trends, prediction of a normal monsoon and the news on EFPO (Employee Provident Fund Organisation) increasing its equity investment limits led to the rise, observed market analysts. According to market analysts, buying was witnessed in consumer durables, automobile, banking and IT (information technology) stocks. Sector-wise, the S&P BSE consumer durables index augmented by 122.50 points, followed by the automobile index by 112.28 points and the banking index by 72.90 points.
IT (information technology) major Tata Consultancy Services (TCS) on Monday said it will commence its Rs 16,000 crore share buy-back program from Thursday. The company said that it will start the process after securities markets regulator Sebi gave its approval to the share buy-back plan. According to a regulatory filing with BSE, the IT major through letter dated 12 May 2017 has received the final observations from Sebi on the draft letter of offer for the buy-back dated 25 April 2017. "In accordance with the Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998, the company will dispatch the Letter of Offer for the Buyback to eligible shareholders appearing on the record date of 8 May 2017, on or before 16 May 2017," the company said in the filing. On 20 February 2017, the global software major announced that it will buy back up to 5.61 crore equity shares of Re1 face value for Rs16,000 crore. TCS shares closed at Rs2,427.25, up 2.66% on the BSE.
The key Indian equity indices touched new intra-day highs during the mid-afternoon trade session on Wednesday, as a strong rupee and healthy buying in metal and automobile stocks buoyed investors' sentiments. Around 2 p.m. on Wednesday, the NSE Nifty rose by 15.40 points or 0.16% to 9,527.65 points. Investors remained firm ahead of a crucial GST (Goods and Services Tax) panel meet in Srinagar starting on Thursday. Both the benchmark indices touched all-time high levels. Appreciation of the rupee against the US dollar also supported the firmness, according to market analysts.
Bharti Airtel on Wednesday announced new plans for its home broadband users, offering up to 100% more high-speed data benefits within the same monthly rentals. "Our new plans are aimed at putting India onto the digital super highway and complement our superfast broadband offerings like ‘V-Fiber'," said Hemanth Kumar Guruswamy, CEO - Homes, Bharti Airtel (India). In-home high speed data consumption in India is increasing exponentially and to serve this growing demand and enable a seamless high speed data experience in a multi-device environment, Airtel has built a future ready network and introduced ‘V-Fiber' that delivers consistently superfast broadband speeds of up to 100 Mbps to homes, the company statement said. Airtel's refreshed broadband plans are designed for ‘V-Fiber' superfast broadband. Bharti Airtel closed at Rs376.00, up 0.35% on the BSE.
After three consecutive days of record highs during the week, the Indian equity markets slipped on Thursday tracking bearish global cues, a weak rupee and heavy selling pressure in automobile, capital goods and consumer durables stocks. According to market observers, investors were also cautious over the ongoing two-day meet of the Good and Services Tax (GST) Council in Srinagar, which will finalise tax slabs on services and commodities in the country. On the NSE, there were 236 advances, 1,285 declines and 61 unchanged. The BSE market breadth was bearish -- with 2,043 declines and 702 advances.
Power utility CESC Ltd announced a business restructuring scheme which is based on demerger of certain existing businesses, group's Chairman Sanjiv Goenka said on Thursday. "This (the restructuring scheme) will lead to four entities focusing on generation, distribution, organised retail and other ventures," he said. All four entities will be listed with stock exchanges, Goenka said. The business restructuring scheme aims to simplify the present corporate structure, he added. The company’s shares closed at Rs829.80, down 15.10% on the BSE, on Thursday.
Following other prominent banks, the country's third largest private sector lender
Axis Bank on Thursday announced 30 basis points (bps) reduction in its home loan interest rates to promote affordable housing finance. "Taking forward its commitment towards affordable housing finance, the bank has revised its rates for home loans up to Rs 30 lakh for the salaried segment to 8.35%, the lowest in the industry," the bank said in a statement. For self-employed, rates for home loan up to Rs30 lakh have been revised to 8.40%. The revised rates will be available with effect from May 16. The bank’s shares closed at Rs491.85, down 2.15% on the BSE.
Indian equity markets traded on a flat-to-negative note during the mid-afternoon trade session on Friday, as investors booked profits and automobile, consumer durables and capital goods stocks faced selling pressure. The key indices, which opened on a higher note following a rebound in global cues and the Goods and Services Tax (GST) Council's fitment of 1,211 goods in the tax slabs, were pulled lower during afternoon trade. However, the 30-scrip Sensitive Index (Sensex) of the BSE touched a new intra-day high of 30,712.35 points. It had touched an intra-day high of 30,692.45 points on May 17. At the end of trading on Friday, the S & P BSE Sensex and the Nifty ended flat over Thursday’s close. On Friday, on the NSE, there were 456 advances, 1,026 declines and 65 unchanged.
Overall, the week has seen volatile trading, but the weekly gains have been a mere 0.29%-0.92% for the major indices of the Indian stock markets. The intra-day highs of the week only hold promise for the future, as, within the week, the gains have been meagre.