INDIAN MARKET PERFORMANCE DURING THE WEEK
Indian markets despite choppiness owing to F&O series expiry, sensed some relief in the passing week and the benchmarks
surged by around 3 percent. After some initial jitters, there was an upswing in the markets through the week, which
strengthened further even on the series expiry and with the start of the new series. The sentiments remained strong since
beginning and benchmark indices snapping three days of continuous fall, showcased an enthusiastic performance on Monday
following a landmark deal between Iran and world powers, on hopes of subsequently easing global crude oil prices which would
help India reduce its current account deficit and contain inflationary pressures.
However, the very next day there was some profit booking, however, investors drew some comfort from provisional data, which
showed that FIIs once again turned net buyers in Indian equities. Meanwhile, ASSOCHAM pegged the country's growth at 5.4%
for the period on improved agricultural output, though street was expecting India’s economy may have expanded by about 4.5
percent in the July-September period. Final day of trade was only extension to the weekly gains for the markets after the
PMEAC, Chairman C. Rangarajan said that Current Account Deficit (CAD) is likely to come down below 3 per cent of gross
domestic product (GDP) in the current fiscal on the back of measures taken by government, and the major indices turned
upbeat to snap the week on a higher note.
Indices wise, NSE Nifty rose by 180.65 points to 6,176.10 while Bank Nifty up by 476.60 points to 11,153.95 and BSE Sensex
gained 574.54 points to 20,791.93, BSE Mid-cap index was up by 171.30 points, while the Small-cap index up by 105.41 points,
Capital Goods up by 750.96 points, Bankex up by 528.31 points, Auto up by 480.13 points, Power up by 62.42 points and PSU
up by 199.53 points were the top gainers on the BSE sectoral space, while there were no losers on the BSE sectoral front.
During the week, CNX Nifty touched high of 6,182.50 and low of 6,030.30 closed at 6,176.10 with a weekly gain of 180.65
points and for the coming week, 6075 and 5975 are likely to be good support levels for the Nifty, while it may face resistance at
6230 and 6280 levels.
Jaiprakash Associate up by 16.16% and BHEL up by 14% was another top gainer on the Nifty during the week, while Bharti
Airtel down by 2.65% and NTPC down by 2.39% was another major loser on the Nifty during the week under review.
INDUSRY & ECONOMY NEWS
The Finance Ministry has zeroed upon half a dozen companies to liquidate its stake held in these companies, in order to meet
the difficult to achieve Rs 40,000 crore divestment targets for the current fiscal, which could help contain country’s fiscal deficit
target of 4.8% of GDP. So far, the government has only managed Rs 1,323 crore from disinvestment. In order to make this
task possible, the finance ministry is also planning to tweak the disinvestment strategy by reviving Specified Undertaking of Unit
Trust of India (Suuti) and launching public-sector exchange-traded funds (ETFs). Suuti, through which the government holds
stakes in private companies, like ITC, L&T and Axis Bank, was dismantled after a Cabinet decision in March 2013. Post to this, it
was decided that Rs 40,000-crore assets would be transferred to an asset management company (AMC), which would leverage
the assets to raise resources for the government.
WORLD MARKET BEHAVIOUR DURING THE WEEK
US MARKET:
The US markets continued its jubilation during the passing holiday-shortened week with S&P 500 and Dow Jones both achieving
record close. The market took note of global powers agreeing a deal with Iran to curb the nation’s nuclear program. Iran and
six global powers including the US reached a six-month agreement to curb Tehran’s nuclear program. Federal Reserve’s Ben
Bernanke refuted the fact that easy monetary policy from the Fed has favored Wall Street. Bernanke added that the Fed has
contributed in a significant manner to the well-being of the middle class and of the poorest Americans. Finally, Bernanke
communicated that the pace of tapering, when it happens, will be modest.
There were some encouraging reports on the economic front; a gauge of consumer sentiment rose this month as expectations
turned rosier. The consumer-sentiment gauge rose to 75.1 in November from 73.2 in October. Despite the gain, November’s
reading remains below 77.5 hit in September.
The number of people who applied for US unemployment benefits fell for the sixth time in seven weeks, returning to end-ofsummer
levels and pointing to some improvement in the labor market. Initial jobless claims dropped by 10,000 to 316,000 in
the week ended November 23.
On the other hand, the pace of pending US home sales fell in October for the fifth straight month, reflecting higher mortgage
rates, a low number of properties for sale and effects from the government shutdown. The government shutdown, it turns out,
is not the only thing that’s undermined the confidence of consumers as retailers enter the most critical part of their year. The
consumer-confidence index fell for the third straight month, dipping to 70.4 in November from 71.2. It’s also the lowest level
since April.
EUROPEAN MARKET:
The European markets mostly remained in green during the week after ECB stated that the overall stress level in the euro
area’s financial system has fallen to its lowest level since the early days of the global financial crisis six years ago. ECB
Governing Council member Christian Noyer added that interest rates had to remain low for an extended period and might go
even lower if needed. Meanwhile, the IMF stated that the recovery in Greece is fragile and will be hurt if the government does
not stay the course of fiscal adjustment and structural reform. The Organisation for Economic Cooperation and Development
informed that Greece will remain mired in recession in 2014 for a seventh straight year, and is likely to need more financial
assistance.
Meanwhile, in the latest sign that one of Europe’s biggest funding gaps may eventually be coming under control, the Treasury
Ministry figures showed that Spain was on track to meet its 2013 public deficit target. The Spanish economy grew 0.1% in the
third quarter on a quarterly basis, as forecast in a flash estimate and after shrinking by the same amount in the second quarter.
On an annual basis the economy contracted by 1.1%, compared to a consensus fall of 1.2% and a 1.6% contraction in the
second quarter.
The consumer confidence within the euro zone fell in line with market expectations in November. The consumer confidence fell
to minus 15.0, in line with forecasts and down from a preliminary estimate of minus 14.5. Euro zone consumer confidence
stood at minus 25.7 in October. Euro Zone Private Sector Lending fell to -2.1%, from -2.0% in the preceding month whose
figure was revised down from -1.9%. The unemployment rate in the euro zone fell unexpectedly last month to a seasonally
adjusted 12.1%, from 12.2% in the preceding month.
4
ASIAN MARKET:
Asian equity indices rallied during the week with major indices garnering gains of over a percentage point. Advances in the
regional markets were led by Japanese Nikkei after the yen slumped to a six-month low against the dollar. Meanwhile, buying
was further spirited on speculation of more monetary easing from the central bank as it tries to revive the Indian economy.
Moreover, the Japanese retail sales rose 2.3% in October from a year earlier, reinforcing hopes that household consumption
may be leading the nation’s economic recovery. Japanese industrial production too rose 0.5% in October from the previous
month marking the second straight month of expansion.
Chinese markets too witnessed jubilation aided by financial reform hopes in the country and on calming jitters about market
liquidity after the People’s Bank of China has been injecting an awful lot of short-term funding into the market. China’s central
bank added another 19 billion yuan on November 28, using 14-day reverse repos.
In Hong Kong, total exports’ value rose by 8.8% to $323.1 billion in October over a year earlier, compared to a year-on-year
increase of 1.5% in September. Moreover, the value of total retail sales in October, provisionally estimated at $37.8 billion, rose
6.3% year-on-year. After netting out the effect of price changes over the same period, the total retail sales volume grew 5.8%.
The revised estimate of the total retail sales value in September increased 5% over a year earlier, while the total retail sales
volume rose 4.9%.
Indian markets despite choppiness owing to F&O series expiry, sensed some relief in the passing week and the benchmarks
surged by around 3 percent. After some initial jitters, there was an upswing in the markets through the week, which
strengthened further even on the series expiry and with the start of the new series. The sentiments remained strong since
beginning and benchmark indices snapping three days of continuous fall, showcased an enthusiastic performance on Monday
following a landmark deal between Iran and world powers, on hopes of subsequently easing global crude oil prices which would
help India reduce its current account deficit and contain inflationary pressures.
However, the very next day there was some profit booking, however, investors drew some comfort from provisional data, which
showed that FIIs once again turned net buyers in Indian equities. Meanwhile, ASSOCHAM pegged the country's growth at 5.4%
for the period on improved agricultural output, though street was expecting India’s economy may have expanded by about 4.5
percent in the July-September period. Final day of trade was only extension to the weekly gains for the markets after the
PMEAC, Chairman C. Rangarajan said that Current Account Deficit (CAD) is likely to come down below 3 per cent of gross
domestic product (GDP) in the current fiscal on the back of measures taken by government, and the major indices turned
upbeat to snap the week on a higher note.
Indices wise, NSE Nifty rose by 180.65 points to 6,176.10 while Bank Nifty up by 476.60 points to 11,153.95 and BSE Sensex
gained 574.54 points to 20,791.93, BSE Mid-cap index was up by 171.30 points, while the Small-cap index up by 105.41 points,
Capital Goods up by 750.96 points, Bankex up by 528.31 points, Auto up by 480.13 points, Power up by 62.42 points and PSU
up by 199.53 points were the top gainers on the BSE sectoral space, while there were no losers on the BSE sectoral front.
During the week, CNX Nifty touched high of 6,182.50 and low of 6,030.30 closed at 6,176.10 with a weekly gain of 180.65
points and for the coming week, 6075 and 5975 are likely to be good support levels for the Nifty, while it may face resistance at
6230 and 6280 levels.
Jaiprakash Associate up by 16.16% and BHEL up by 14% was another top gainer on the Nifty during the week, while Bharti
Airtel down by 2.65% and NTPC down by 2.39% was another major loser on the Nifty during the week under review.
INDUSRY & ECONOMY NEWS
The Finance Ministry has zeroed upon half a dozen companies to liquidate its stake held in these companies, in order to meet
the difficult to achieve Rs 40,000 crore divestment targets for the current fiscal, which could help contain country’s fiscal deficit
target of 4.8% of GDP. So far, the government has only managed Rs 1,323 crore from disinvestment. In order to make this
task possible, the finance ministry is also planning to tweak the disinvestment strategy by reviving Specified Undertaking of Unit
Trust of India (Suuti) and launching public-sector exchange-traded funds (ETFs). Suuti, through which the government holds
stakes in private companies, like ITC, L&T and Axis Bank, was dismantled after a Cabinet decision in March 2013. Post to this, it
was decided that Rs 40,000-crore assets would be transferred to an asset management company (AMC), which would leverage
the assets to raise resources for the government.
WORLD MARKET BEHAVIOUR DURING THE WEEK
US MARKET:
The US markets continued its jubilation during the passing holiday-shortened week with S&P 500 and Dow Jones both achieving
record close. The market took note of global powers agreeing a deal with Iran to curb the nation’s nuclear program. Iran and
six global powers including the US reached a six-month agreement to curb Tehran’s nuclear program. Federal Reserve’s Ben
Bernanke refuted the fact that easy monetary policy from the Fed has favored Wall Street. Bernanke added that the Fed has
contributed in a significant manner to the well-being of the middle class and of the poorest Americans. Finally, Bernanke
communicated that the pace of tapering, when it happens, will be modest.
There were some encouraging reports on the economic front; a gauge of consumer sentiment rose this month as expectations
turned rosier. The consumer-sentiment gauge rose to 75.1 in November from 73.2 in October. Despite the gain, November’s
reading remains below 77.5 hit in September.
The number of people who applied for US unemployment benefits fell for the sixth time in seven weeks, returning to end-ofsummer
levels and pointing to some improvement in the labor market. Initial jobless claims dropped by 10,000 to 316,000 in
the week ended November 23.
On the other hand, the pace of pending US home sales fell in October for the fifth straight month, reflecting higher mortgage
rates, a low number of properties for sale and effects from the government shutdown. The government shutdown, it turns out,
is not the only thing that’s undermined the confidence of consumers as retailers enter the most critical part of their year. The
consumer-confidence index fell for the third straight month, dipping to 70.4 in November from 71.2. It’s also the lowest level
since April.
EUROPEAN MARKET:
The European markets mostly remained in green during the week after ECB stated that the overall stress level in the euro
area’s financial system has fallen to its lowest level since the early days of the global financial crisis six years ago. ECB
Governing Council member Christian Noyer added that interest rates had to remain low for an extended period and might go
even lower if needed. Meanwhile, the IMF stated that the recovery in Greece is fragile and will be hurt if the government does
not stay the course of fiscal adjustment and structural reform. The Organisation for Economic Cooperation and Development
informed that Greece will remain mired in recession in 2014 for a seventh straight year, and is likely to need more financial
assistance.
Meanwhile, in the latest sign that one of Europe’s biggest funding gaps may eventually be coming under control, the Treasury
Ministry figures showed that Spain was on track to meet its 2013 public deficit target. The Spanish economy grew 0.1% in the
third quarter on a quarterly basis, as forecast in a flash estimate and after shrinking by the same amount in the second quarter.
On an annual basis the economy contracted by 1.1%, compared to a consensus fall of 1.2% and a 1.6% contraction in the
second quarter.
The consumer confidence within the euro zone fell in line with market expectations in November. The consumer confidence fell
to minus 15.0, in line with forecasts and down from a preliminary estimate of minus 14.5. Euro zone consumer confidence
stood at minus 25.7 in October. Euro Zone Private Sector Lending fell to -2.1%, from -2.0% in the preceding month whose
figure was revised down from -1.9%. The unemployment rate in the euro zone fell unexpectedly last month to a seasonally
adjusted 12.1%, from 12.2% in the preceding month.
4
ASIAN MARKET:
Asian equity indices rallied during the week with major indices garnering gains of over a percentage point. Advances in the
regional markets were led by Japanese Nikkei after the yen slumped to a six-month low against the dollar. Meanwhile, buying
was further spirited on speculation of more monetary easing from the central bank as it tries to revive the Indian economy.
Moreover, the Japanese retail sales rose 2.3% in October from a year earlier, reinforcing hopes that household consumption
may be leading the nation’s economic recovery. Japanese industrial production too rose 0.5% in October from the previous
month marking the second straight month of expansion.
Chinese markets too witnessed jubilation aided by financial reform hopes in the country and on calming jitters about market
liquidity after the People’s Bank of China has been injecting an awful lot of short-term funding into the market. China’s central
bank added another 19 billion yuan on November 28, using 14-day reverse repos.
In Hong Kong, total exports’ value rose by 8.8% to $323.1 billion in October over a year earlier, compared to a year-on-year
increase of 1.5% in September. Moreover, the value of total retail sales in October, provisionally estimated at $37.8 billion, rose
6.3% year-on-year. After netting out the effect of price changes over the same period, the total retail sales volume grew 5.8%.
The revised estimate of the total retail sales value in September increased 5% over a year earlier, while the total retail sales
volume rose 4.9%.
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