08 December, 2012

Weekly Pulse - Dec 8, 2012

Weekly Update - Dec 8, 2012

In spite of  government winning the vote on FDI in multi-brand retail, the market struggled a bit on Friday afternoon, but managed to recuperate towards the end of the session. Although the market ended the day on a losing note, it posted modest gains for the week; supported by FII's heavy buying. Markets ended slightly higher with Sensex ended the week with a gain of around 84 points or 0.4% at 19,424, while Nifty closed with a gain of 27.55 points or almost 0.5% at 5907.40.

Sector-wise BSE Realty index surged 5% to 2102, Oil & Gas also showed a good rally  and went up 3% to 8,510, Metal shares also gained on reports of higher demand from China, the world's largest consumer of copper and aluminum. Banks and Financials sectors witnessed some selling pressure towards the end of the week, index managed to end up 1.6% at 14,183. However, State Bank of India remained the top gainer this week with 6.5% gains at Rs 2,311. British lender Barclays said, the Reserve Bank is likely to leave the policy rates unchanged at the December 18 review and that a lending rate cut may happen only in the January policy announcement. However, BSE Indian IT index slumped 4% to 5,644. Most shares were in the red on fears that Cognizant Technology Solutions Corp may issue lower revenue growth guidance for 2013 based on compensation targets for top executives.
ITC, Reliance Industries, Tata Power, ICICI Bank and State Bank of India saw some bright spells and ended the week on a positive note.

Index heavyweight Reliance Industries (RIL) surged after the company on 5 December 2012 said that the board of Ex-Im Bank has voted to extend the single largest financing transaction of $2.1 billion to Reliance Industries. The stock rallied 5% to Rs 834.

Maruti Suzuki added over 2.4%, as stock touched a one-year high level after the company said it will increase the prices of its vehicles across all models by up to Rs 20,000 from January, it also reported a near 10% surge in domestic sales in November. The company said its exports saw a rise of more than 38% in the month. Tata Motors reported a 14% decline in commercial and passenger vehicles sales. It's exports figures too were disappointing, as they declined by more than 4%, stock inched higher by 3.4%.

Hindalco, BHEL, Sterlite and ICICI Bank were other key gainers this week. On the other hand, Bharti Airtel slipped 4.3% to Rs 322. The initial public offer of Bharti Airtel's subsidiary Bharti Infratel opens for bidding on 11 December 2012. The price band for the IPO has been fixed at between Rs 210 to Rs 240 per share.

Information technology stocks eased amid concerns Cognizant Technology Solutions might issue a lower revenue guidance for fiscal 2013.
TCS and Wipro shed 3.4% each on outlook worries. Sun Pharma slipped 1.4% to Rs 700 after traders took to booking profits.

According to a survey, India's manufacturing sector expanded at its fastest pace in five months in November 2012, boosted by strong export orders and a surge in output. HSBC manufacturing Purchasing Managers' Index, which gauges the business activity of India's factories, rose to 53.7 in November from 52.9 in October. The new export orders sub-index rose to a six-month high of 55.9 in November, giving thrust to overall orders and factory output, both of which expanded at their fastest pace since July.

Meanwhile, India's services sector grew at its weakest pace in over a year during November 2012 due to slowing orders, according to a survey. The HSBC services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 52.1 in November from October's 53.8, to register a 13-month low.

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