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Benchmark indices made a sharp recovery during the week tracking a rebound in the rupee and fall in crude oil prices. Recovery was led by strong gains in shares of IT and pharmaceutical companies.
On the weekly basis, the 30-share Sensex rose 100.28 points or 0.54% to 18,619.72. The 50-unit Nifty ended flat at 5,471.80.
The S&P BSE Mid-Cap index fell 1.09% and the S&P BSE Small-Cap index fell 1.07%.
MACRO
India’s gross domestic product (GDP) growth dived to a four-year low of 4.4 per cent in the April-June quarter of 2013-14, against 4.8 per cent in the fourth quarter of the previous financial year, official data showed on Friday.
Amid slowing tax revenues and rising Plan expenditure, the Centre’s fiscal deficit for the first four months of this financial year soared to Rs 3.4 lakh crore, 62.8 per cent of the Budget estimate (BE) of Rs 5.42 lakh crore for 2013-14, according to data released by the Controller General of Accounts.
FIIs
Foreign institutional investors (FIIs) have offloaded shares worth a net Rs 5922.50 crore in August 2013 so far (till 29 August 2013). FIIs sold shares worth a net Rs 6086.10 crore in July 2013. FIIs have purchased shares worth a net Rs 60169.80 crore in 2013 so far (till 29 August 2013). FIIs bought shares worth a net Rs 128359.80 crore in calendar 2012.
RUPEE
The rupee recovered amid high volatility after Prime Minister said that the government isn't looking at imposing restrictions on the movement of capital out of the country as he sought to allay investor concerns that have lately hurt financial markets, especially the rupee which has declined sharply against the dollar this month. The rupee was hovering at 66.10 yesterday, higher than its close of 66.55/56 on Thursday.
The rupee had risen sharply on Thursday after the Reserve Bank of India said it will sell dollars to oil companies to defend the local currency. The rupee hit a record closing low of 68.80 a dollar on Wednesday.
CRUDE
US crude oil futures retracted after UK lawmakers rejected a motion for military action against Syria, easing concern that unrest will disrupt Middle East oil supplies. US crude oil futures for October 2013 delivery were down 94 cents a barrel at $107.86 a barrel in the electronic trading on Friday.
SECTORS & STOCKS
On Monday, after witnessing a volatile trade the BSE Sensex rose 38.69 points or 0.21% to 18,558.13. The CNX Nifty rose 4.75 points or 0.09% to 5,476.50.
On Tuesday, as the passage of the food bill in Lok Sabha raised fears that the government might face more subsidy burden. Sensex fell 590.05 points.
Buzz of buying by Life Insurance Corporation helped Indian stocks stage a strong intraday rebound. Sensex rose 28 points.
A recovery in the battered rupee, a slide in oil prices triggered by US President Barack Obama's comments on Wednesday that he hasn't yet decided whether to launch an attack on Syria and weaker-than-expected report on US durable-goods orders which raised expectations that the Federal Reserve may delay plans to reduce its monetary stimulus to the US economy, aided a rally in Indian stocks on Thursday. The S&P BSE Sensex jumped 404.89 points or 2.25% to 18,401.04.
On Friday, markets surged after the rupee recovered in choppy trade after Prime Minister said that the government isn't looking at imposing restrictions on the movement of capital out of the country as he sought to allay investor concerns that have lately hurt financial markets, especially the rupee which has declined sharply against the dollar this month. The S&P BSE Sensex was up 218.68 points.
Hero MotoCorp, HUL, RIL, Bajaj Auto, BHEL and NTPC gained between 1-7% from the Sensex pack.
M&M, Maruti Suzuk, Bharti Airtel, HDFC, Tata Power, Larsen & Toubro, Tata Motors, and ITC slipped between 0.1-4%.
Shares of PSU oil and gas firms dropped after crude oil prices rose during the week, stoking concerns of higher subsidy burden. ONGC was the top weekly loser, down over 9%. Oil India and GAIL declined between 3-4%.
Jindal Steel & Power (JSPL) tumbled 7.71% to Rs 221.90. JSPL’s board approved share buyback proposal through open market purchases..
Coal India fell 7.15% and Tata Steel declined 2.83%. However, Hindalco Industries rose 1.25%.
Sesa Goa surged 22.50% to Rs 187.30. It was the top gainers in the Sensex pack. The stock replaced Sterlite Industries in the 30-share benchmark S&P BSE Sensex early this week. Sesa Goa replaced Sterlite Industries (India) in the Sensex on 27 August 2013 following the scheme of amalgamation between the two Vedanta group firms, whereby Sterlite Industries (India) merged with Sesa Goa. Trading in Sterlite stopped from 27 August 2013.
Banking shares witnessed selling pressure. ICICI Bank , State Bank of India and HDFC Bank plunged between 2-6%.
IT stocks gained on a weak rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Positive economic data in the US, the biggest outsourcing market for the Indian IT firms, also boosted IT shares.
Wipro rose 7.92% to Rs 483.90 after hitting a 52-week high of Rs 495 in intraday trade on Friday, 30 August 2013. Wipro on Thursday, 29 August 2013, announced the launch of a range of information technology (IT) products for the aviation industry.
TCS rose 10.67% to Rs 2023.15 after hitting a record high of Rs 2040 in intraday trade on Friday, 30 August 2013.
Infosys rose 3.40% to Rs 3,100.30.
Pharmaceutical stocks were in demand. Dr. Reddy's Laboratories (up 8.29%), Cipla (up 5.29%) and Sun Pharmaceutical Industries (up 2.47%), edged higher.
