Stocks
Nifty, Sensex to move sideways - Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex may pause for breath. Indian Equity Markets ended lower on Monday after a three day rally as investors chose to book profits caused by the rally in the previous week. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
The key indices ended in red as the software services exporters worried over strong rupee and a slowdown in business. Shares of IT companies plunged on reports that Cognizant may reduce at least 10,000 jobs, representing 5% of its total workforce, as the company looks to shift its focus from traditional IT services to digital. The rupee strengthened slightly to 65.4124/4150 per dollar, close to the near 17-month high of 65.2250 hit last week.
 
The shares of Idea Cellular fell by 11% on BSE after the announcement of the board approving the merger with Vodafone’s Indian operations, reversing the earlier gains of 14.25%. This decline was observed because the investors thought that the deal values the stock of the company much lower than the current market price; the promoters however rejected the valuation rumours. Voadafone India will own 45.1% of the combined entity, the promoters of Idea will own 26% and the rest will be held by the public. 
 
The markets, on an overall level, remained positive on hope for additional economic reforms from the government. A government official has said that the Modi Cabinet has approved four bills to implement a planned Goods and Services Tax (GST); the landmark tax will be implement from July 1. Analysts have said that the concern over high share valuations and lack of big events is likely to keep the markets rangebound. The IT sector accounted for around 50% of the losses on the CNX Nifty index, led by TCS falling by 1.97% and Infosys 1.92%. Kotak Mahindra bank rose by1.23% after it announced on Friday that it would seek approval from shareholders to raise the foreign shareholding limit up to 49%. HCL Technologies hit its 52-week high of Rs879.15, ahead of its board meeting to consider a buyback proposal. 
 
On the NSE, there were 701 advances, 774 declines and 76 unchanged. On the BSE, there were 1,354 advances, 1,443 declines and 226 unchanged.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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Nifty, Sensex may pause for breath – Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex continued to be range-bound. The major indices of the Indian stock markets rallied during the week and closed with a gain of over 2% during the week. The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
Indian equity markets surged on Tuesday (the market was closed on Monday on account of Holi), tracking positive state election results for ruling party at the Centre. Bearish USD/INR futures prices also supported the firm sentiments of the markets. Almost all sector stocks traded with firm sentiments tracking over all buying activities in Indian equity markets. On the NSE, there were 944 advances, 523 declines and 75 unchanged. On the BSE, there were 1,703 advances, 1,124 declines and 218 unchanged.
 
India's annual rate of inflation based on wholesale prices rose to 6.55% in February 2017 from 5.25% in the previous month, official data showed on Tuesday. According to the Wholesale Price Index (WPI) data released by the Commerce and Industry Ministry, the annual inflation rate was (-)0.85%  in February 2016. A rise in inflation could divert some fixed income investments into the stock markets and show higher trading volumes over a period of time.
 
US stocks wavered and ended mixed, as Wall Street mainly awaited a possible interest rate hike from the US Federal Reserve on Wednesday. Traders generally anticipated the Federal Open Market Committee to raise interest rates at the conclusion of its two-day monetary policy meeting later this week. Market expectations for a March rate hike were around 95.2%, according to the CME Group's FedWatch tool. A rise in interest rates could divert some funds of foreign institutional investors from India to developed countries.
 
Selling pressure in IT (information technology) and Teck (technology, media and entertainment) stocks, coupled with disappointing macro-economic data pulled the Indian equity markets lower on Wednesday. Besides, investors were cautious ahead of the US Federal Open Market Committee's meet later in the evening on whether or not to raise interest rates. However, the rupee was strong. On the NSE, there were 790 advances, 661 declines and 63 unchanged. On the BSE, there were 1,426 advances, 1,384 declines and 187 unchanged.
 
Asia's oldest bourse BSE on Tuesday launched futures on S&P BSE Sensex 50 index which will help investors to achieve portfolio diversification. "The market participants would be able to take a long-term view on the underlying. Introduction of additional indices will also lead to increased participation in the index futures market," it said in a statement. The index is designed to measure the performance of the top 50 largest and liquid stocks in the exchange's Large and Mid Cap by float-adjusted market capitalisation. Further, index futures contracts will lead to better price discovery and will be useful in hedging and risk management tools. According to the exchange, it will also take market towards a multi-product environment. "The index is diversified index as it represents each key economic sector identified by bourse's sector model covering approximately 53.9% of total market capitalisation of the exchange listed companies as of October 30, 2016," it added.
 
Positive global cues, a strong rupee and healthy buying in metals, capital goods and consumer durables stocks, brought a cheer to the Indian equity markets on Thursday. The key indices closed with gains of more half a per cent each, well absorbing the 25 basis points (bps) rate hike by the US Federal Reserve on Wednesday for the second time in three months.  The Indian economy is strong enough to absorb the impact of the US Federal Reserve's interest rate hike, the government said on Thursday. 
 
On Friday, the major indices were range-bound and closed with marginal losses over Thursday’s close. As many as 29 lakh debit cards, which were connected to Hitachi's switch, came under malware attack last year, Parliament was informed on Friday. "As reported by commercial banks, 29 lakh cards used at ATMs that were connected to switch of Hitachi were subjected to malware attack," Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Lok Sabha. However, the successful attempts of misuse of compromised cards reported to the Reserve Bank of India (RBI) by banks was only 3,291, he said. The S & P BSE Bankex closed at 24,151.13, down 0.46%. 
 

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