Market settles with small losses
Key benchmark indices settled with small losses for the week ended Friday, 22 January 2016. A strong recovery on the bourses on final trading session of the week triggered by rebound in crude oil prices and global stocks helped recoup almost entire losses suffered during earlier sessions of the week. The barometer index, the S&P BSE Sensex managed to regain psychological 24,000 mark after earlier falling below that mark after bourses suffered heavy losses in line with drop in global stocks triggered by concerns over plummeting oil prices and worries over global economic growth. Key indices fell in three out of five sessions of the week.
The Sensex fell 19.38 points or 0.07% to settle at 24,435.66. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty shed 15.35 points or 0.2% to settle at 7,422.45.
The BSE Mid-Cap index dropped 1.45%. The BSE Small-Cap index shed 1.71%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Trading for the week started on weak note. Losses for oil sector stocks and index heavyweight Reliance Industries (RIL) pulled key benchmark indices lower at the onset of the week on Monday, 18 January 2016, as weakness in Asian stocks dampened sentiment. The Sensex shed 266.67 points or 1.09% to settle at 24,188.37.
Banking and telecom sector stocks and index heavyweight Reliance Industries (RIL) led recovery as Indian stocks snapped a three day losing streak on Tuesday, 19 January 2016 as gains in global stocks aided the upmove on the domestic bourses. The Sensex gained 291.47 points or 1.21% to settle at 24,479.84.
Losses for public sector banks and index heavyweight Reliance Industries (RIL) led decline for key benchmark indices as selloff in global stocks pulled Indian stocks lower on Wednesday, 20 January 2016. The Sensex lost 417.80 points or 1.71% to settle at 24,062.04.
Losses for index heavyweight Reliance Industries (RIL) and oil sector stocks outweighed gains for bank stocks and index heavyweight Infosys, with key benchmark indices registering modest losses on Thursday, 21 January 2016. The Sensex fell 99.83 points or 0.41% to settle at 23,962.21.
Trading for the week ended on a strong note. Metal, auto and banking sector stocks led the rally on the domestic bourses triggered by a rebound in global stocks on Friday, 22 January 2016. The Sensex surged 473.45 points or 1.98% to settle at 24,435.66.
From the 30-share Sensex pack, 15 stocks rose and rest fell.
Auto stocks were mixed. Tata Motors (down 0.64%), Maruti Suzuki India (down 3.88%), and Bajaj Auto (down 0.75%) declined. Hero MotoCorp jumped 7.19%.
Mahindra & Mahindra (M&M) rose 1.27%. M&M on 22 January 2016 announced the launch of its mHawk new 1.99 litre diesel engine. The new engine would be available for customers within the Delhi and NCR Region to begin with, M&M said. The new 1.99 litre engine will power the New Generation Scorpio and will deliver 120 HP while for the New Age XUV500, it will deliver 140 HP, it added.
Index heavyweight and engineering and construction major L&T advanced 3.25%. The company announced on 22 January 2016 that it has won a contract worth Rs 1213 crore from the Dedicated Freight Corridor Corporation of India. The freight corridor project has been secured by a consortium of L&T and Sojitz Corp., Japan.
Bharat Heavy Electricals (Bhel) jumped 7.91%.
GAIL (India) surged 9.31% and was the second biggest gainer from the Sensex pack.
Index heavyweight Reliance Industries (RIL) lost 6.45% and was the biggest loser from the Sensex pack. RIL's consolidated net profit jumped 38.7% to Rs 7290 crore on 23.9% decline in revenue to Rs 73341 crore in Q3 December 2015 over Q3 December 2014. The result was announced on 19 January 2016. RIL's standalone gross refining margins (GRM) increased to a seven-year high at $11.5 per barrel in Q3 December 2015 from $7.3 a barrel in Q3 December 2014. Strong gasoline and naptha cracks, seasonal rebound in middle distillates cracks, robust demand growth and sourcing of advantageous crude helped boost refining margins, RIL said in a statement.
Shares of state-run coal-mining giant Coal India dropped 5.74% and was the second biggest loser from the Sensex pack.
Asian Paints fell 0.85%. Asian Paints' consolidated net profit rose 25.82% to Rs 463.28 crore on 13.92% rise in total income to Rs 4195.82 crore in Q3 December 2015 over Q3 December 2014. The result was announced on 18 January 2016.
Wipro rose 1.06%. The company's consolidated net profit rose 2% to Rs 2230 crore on 7% growth in gross revenue to Rs 12860 crore in Q3 December 2015 over Q3 December 2014. The result was as per International Financial Reporting Standards. The company announced results on 18 January 2016. Wipro's revenue from IT services business rose 0.3% to $1,838.30 million in Q3 December 2015 over Q2 September 2015. IT services segment Non-GAAP constant currency revenue in dollar terms grew 1.4% sequentially. Wipro expects revenue from its IT services business to be in the range of $1,875 million to $1,912 million in Q4 March 2016.
Pharma stocks were mixed. Cipla (down 3.61%) and Dr Reddy's Laboratories (down 1.82%) declined. Lupin (up 0.95%) and Sun Pharmaceutical Industries (up 0.53%) gained.
Bank stocks were mixed. HDFC Bank (down 1.2%), and State Bank of India (SBI) (down 0.24%) declined. ICICI Bank rose 3.65%.
Axis Bank surged 13.5% and was the biggest gainer from the Senses pack after the bank reported good Q3 result. The bank's net profit rose 14.5% to Rs 2175.30 crore on 14.66% rise in total income to Rs 12531.11 crore in Q3 December 2015 over Q3 December 2014. The result was announced on 20 January 2016.
Meanwhile, the data released on 18 January 2016 showed that India's merchandise exports declined for the thirteenth straight month in December 2015. Exports fell 14.7% to $22.30 billion in December 2015 over a year ago. The trend of falling exports is in tandem with other major world economies, according to a government statement. Imports fell 3.9% to $33.96 billion. The trade deficit widened 27.1% to $11.7 billion in December 2015 from $9.18 billion in December 2014.
Meanwhile, the International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) released on 20 January 2016 cut global economic growth forecast for 2016 and 2017. Global growth for 2016 is seen at 3.4% and 3.6% in 2017, the IMF said. The pickup in global growth is weak and uneven across economies, with risks now tilted toward the emerging markets, says the IMF's latest WEO update. Looking beyond the short-run forecasts, there are important risks to global growth outlook, which are particularly prominent for emerging market and developing economies and could stall global recovery. These risks relate mostly to the ongoing adjustments of the global economy, namely China's rebalancing, lower commodity prices, and the prospects for the progressive increase in interest rates in the United States, the IMF said.
Data showed on 19 January 2016 that China's economy grew 6.8% in the fourth quarter from a year earlier, easing from 6.9% in the third quarter. It was the weakest pace of expansion since the first quarter of 2009, when growth tumbled to 6.2%. China's economic growth rate slowed to a 25-year low of 6.9% in 2015. China's GDP expansion stood at 7.3% in 2014.
European Central Bank (ECB) President Mario Draghi on 21 January 2016, signaled at a news conference that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly. The ECB left its key interest rates unchanged after a monetary policy review.
The Sensex fell 19.38 points or 0.07% to settle at 24,435.66. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty shed 15.35 points or 0.2% to settle at 7,422.45.
The BSE Mid-Cap index dropped 1.45%. The BSE Small-Cap index shed 1.71%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Trading for the week started on weak note. Losses for oil sector stocks and index heavyweight Reliance Industries (RIL) pulled key benchmark indices lower at the onset of the week on Monday, 18 January 2016, as weakness in Asian stocks dampened sentiment. The Sensex shed 266.67 points or 1.09% to settle at 24,188.37.
Banking and telecom sector stocks and index heavyweight Reliance Industries (RIL) led recovery as Indian stocks snapped a three day losing streak on Tuesday, 19 January 2016 as gains in global stocks aided the upmove on the domestic bourses. The Sensex gained 291.47 points or 1.21% to settle at 24,479.84.
Losses for public sector banks and index heavyweight Reliance Industries (RIL) led decline for key benchmark indices as selloff in global stocks pulled Indian stocks lower on Wednesday, 20 January 2016. The Sensex lost 417.80 points or 1.71% to settle at 24,062.04.
Losses for index heavyweight Reliance Industries (RIL) and oil sector stocks outweighed gains for bank stocks and index heavyweight Infosys, with key benchmark indices registering modest losses on Thursday, 21 January 2016. The Sensex fell 99.83 points or 0.41% to settle at 23,962.21.
Trading for the week ended on a strong note. Metal, auto and banking sector stocks led the rally on the domestic bourses triggered by a rebound in global stocks on Friday, 22 January 2016. The Sensex surged 473.45 points or 1.98% to settle at 24,435.66.
From the 30-share Sensex pack, 15 stocks rose and rest fell.
Auto stocks were mixed. Tata Motors (down 0.64%), Maruti Suzuki India (down 3.88%), and Bajaj Auto (down 0.75%) declined. Hero MotoCorp jumped 7.19%.
Mahindra & Mahindra (M&M) rose 1.27%. M&M on 22 January 2016 announced the launch of its mHawk new 1.99 litre diesel engine. The new engine would be available for customers within the Delhi and NCR Region to begin with, M&M said. The new 1.99 litre engine will power the New Generation Scorpio and will deliver 120 HP while for the New Age XUV500, it will deliver 140 HP, it added.
Index heavyweight and engineering and construction major L&T advanced 3.25%. The company announced on 22 January 2016 that it has won a contract worth Rs 1213 crore from the Dedicated Freight Corridor Corporation of India. The freight corridor project has been secured by a consortium of L&T and Sojitz Corp., Japan.
Bharat Heavy Electricals (Bhel) jumped 7.91%.
GAIL (India) surged 9.31% and was the second biggest gainer from the Sensex pack.
Index heavyweight Reliance Industries (RIL) lost 6.45% and was the biggest loser from the Sensex pack. RIL's consolidated net profit jumped 38.7% to Rs 7290 crore on 23.9% decline in revenue to Rs 73341 crore in Q3 December 2015 over Q3 December 2014. The result was announced on 19 January 2016. RIL's standalone gross refining margins (GRM) increased to a seven-year high at $11.5 per barrel in Q3 December 2015 from $7.3 a barrel in Q3 December 2014. Strong gasoline and naptha cracks, seasonal rebound in middle distillates cracks, robust demand growth and sourcing of advantageous crude helped boost refining margins, RIL said in a statement.
Shares of state-run coal-mining giant Coal India dropped 5.74% and was the second biggest loser from the Sensex pack.
Asian Paints fell 0.85%. Asian Paints' consolidated net profit rose 25.82% to Rs 463.28 crore on 13.92% rise in total income to Rs 4195.82 crore in Q3 December 2015 over Q3 December 2014. The result was announced on 18 January 2016.
Wipro rose 1.06%. The company's consolidated net profit rose 2% to Rs 2230 crore on 7% growth in gross revenue to Rs 12860 crore in Q3 December 2015 over Q3 December 2014. The result was as per International Financial Reporting Standards. The company announced results on 18 January 2016. Wipro's revenue from IT services business rose 0.3% to $1,838.30 million in Q3 December 2015 over Q2 September 2015. IT services segment Non-GAAP constant currency revenue in dollar terms grew 1.4% sequentially. Wipro expects revenue from its IT services business to be in the range of $1,875 million to $1,912 million in Q4 March 2016.
Pharma stocks were mixed. Cipla (down 3.61%) and Dr Reddy's Laboratories (down 1.82%) declined. Lupin (up 0.95%) and Sun Pharmaceutical Industries (up 0.53%) gained.
Bank stocks were mixed. HDFC Bank (down 1.2%), and State Bank of India (SBI) (down 0.24%) declined. ICICI Bank rose 3.65%.
Axis Bank surged 13.5% and was the biggest gainer from the Senses pack after the bank reported good Q3 result. The bank's net profit rose 14.5% to Rs 2175.30 crore on 14.66% rise in total income to Rs 12531.11 crore in Q3 December 2015 over Q3 December 2014. The result was announced on 20 January 2016.
Meanwhile, the data released on 18 January 2016 showed that India's merchandise exports declined for the thirteenth straight month in December 2015. Exports fell 14.7% to $22.30 billion in December 2015 over a year ago. The trend of falling exports is in tandem with other major world economies, according to a government statement. Imports fell 3.9% to $33.96 billion. The trade deficit widened 27.1% to $11.7 billion in December 2015 from $9.18 billion in December 2014.
Meanwhile, the International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) released on 20 January 2016 cut global economic growth forecast for 2016 and 2017. Global growth for 2016 is seen at 3.4% and 3.6% in 2017, the IMF said. The pickup in global growth is weak and uneven across economies, with risks now tilted toward the emerging markets, says the IMF's latest WEO update. Looking beyond the short-run forecasts, there are important risks to global growth outlook, which are particularly prominent for emerging market and developing economies and could stall global recovery. These risks relate mostly to the ongoing adjustments of the global economy, namely China's rebalancing, lower commodity prices, and the prospects for the progressive increase in interest rates in the United States, the IMF said.
Data showed on 19 January 2016 that China's economy grew 6.8% in the fourth quarter from a year earlier, easing from 6.9% in the third quarter. It was the weakest pace of expansion since the first quarter of 2009, when growth tumbled to 6.2%. China's economic growth rate slowed to a 25-year low of 6.9% in 2015. China's GDP expansion stood at 7.3% in 2014.
European Central Bank (ECB) President Mario Draghi on 21 January 2016, signaled at a news conference that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly. The ECB left its key interest rates unchanged after a monetary policy review.
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