INDIAN MARKET PERFORMANCE DURING THE WEEK 24/02/2013 to 01/03/2014

Indian markets despite a slow start and witnessing a plunge towards the end made a splendid bounce back to snap the passing 
week with good gains. The global cues mainly influenced the markets during the week after minutes from US Federal Reserve’s 
January policy meeting showed most Fed members are determined to taper the central bank's bond-buying program. There 
were some weak manufacturing data from within the region that too dampened the mood of the markets, especially the 
metal sector. Earlier the start of the week was slow but positive and the traders reacted cautiously to the much inline interim 
budget of 2014-15. 
The Finance Minister P Chidambaram giving a report card on the economy for the past two terms of the UPA government, 
went for some populist measures, however he kept the direct taxes unchanged but tweaked some excise duties to bring 
cheers to the long ailing manufacturing sector. However, the major surge came the next day when euphoric market went for 
gain of about a percent, giving a thumbs-up to the interim budget and all the sectors that directly or indirectly got any 
advantage from the budget proposals, gained substantially. 
Trade remained sanguine and markets men continued buying even at the higher levels. However, the local markets along with 
other global indices were spooked by the release of the US Fed’s minutes of last meeting. While the benchmarks lost their 
crucial psychological levels, banking sector emerged as the potential drag for the markets. The continuous weakness in rupee 
on dollar demand from oil importers amid weakness in emerging Asian currencies, too kept weighing the sentiments of the 
market. However, the markets bounced back on the final day of the week supported by broad based buying ahead of the F&O 
expiry week and both the major indices posted gains of over one and half a percent for the week. 
BSE Sensex gained 333.93 points to 20,700.75 during the week, BSE Mid-cap index was up by 110.17 points while Small-cap 
index up by 113.64 points. On the sectoral front, Capital Goods up by 439.03 points, Bankex up by 391.62 points, Power up by 
42.60 points, IT up by 205.34 points and Healthcare up by 216.94 points were the top gainers on the BSE sectoral space, while 
Metal down 83.51 points, PSU down 31.77 points, Oil & Gas down 35.23 points, FMCG down 19.16 points and Realty down 
0.99 points were the top losers on the BSE sectoral front. Nifty rose by 107.10 points to 6,155.45, Bank Nifty up by 350.60 
points. FIIs were net buyer in equity of Rs 1463.40 crore. 

INDUSRY & ECONOMY NEWS

Thwarting hopes of any early easing in restrictions to the gold imports, the Reserve Bank of India (RBI) has barred nominated 

banks and agencies from importing the precious metal in excess of their entitlements in first or second lot under the 80:20 

schemes. As per RBI’s latest notification, import of gold in the third lot onwards should be lesser of the two-five times the 

export for which proof has been submitted or quantity of gold permitted to a nominated agency in the first or second lot. 

Previously, the government under the 80:20 scheme in August 14, 2013, allowed nominated agencies to import gold, provided 

that 20 per cent of the inward shipment will be exported and the permission to import the next lot was granted only on the 

fulfillment of these export obligations.

INDUSRY & ECONOMY NEWS

Thwarting hopes of any early easing in restrictions to the gold imports, the Reserve Bank of India (RBI) has barred nominated 

banks and agencies from importing the precious metal in excess of their entitlements in first or second lot under the 80:20 

schemes. As per RBI’s latest notification, import of gold in the third lot onwards should be lesser of the two-five times the 

export for which proof has been submitted or quantity of gold permitted to a nominated agency in the first or second lot. 

Previously, the government under the 80:20 scheme in August 14, 2013, allowed nominated agencies to import gold, provided 

that 20 per cent of the inward shipment will be exported and the permission to import the next lot was granted only on the 

fulfillment of these export obligations.

WORLD MARKET BEHAVIOUR DURING THE WEEK

US MARKET:

The US markets in a holiday shortened week witnessed rounds of volatility and major indices after suffering a 

plunge recovered on getting good manufacturing data. Earlier after the release of minutes from the most recent 

Federal Reserve meeting the major indices turned negative. The minutes of Federal Reserve’s January policy 

meeting showed most Fed members are determined to taper the central bank's bond-buying program despite this 

winter's troubling economic data. At its Jan 28-29 policy meeting, the Fed voted to trim its monthly asset purchasing 

program to $65 billion from $75 billion. All members agreed that the cumulative improvement in labor market 

conditions and the likelihood of continuing improvement indicated that it would be appropriate to make a further 

measured reduction in the pace of its asset purchases at this meeting. However, the minutes revealed that 

monetary authorities debated ditching plans to hike rates if the unemployment rate falls past 6.5%, a policy tool 

known as forward guidance. 

In economic news, an industry survey showed that confidence in the home building sector in the U.S. deteriorated 

lately. The National Association of Home Builders said its housing market index slipped to 46 in February compared 

to a reading of 56 last month. Economists expected the measure to remain steady. While, the Commerce 

Department said that housing starts sank 16 percent to a seasonally adjusted annual rate of 880,000 units. The 

number of building permits issued last month declined by 5.4% to a seasonally adjusted 937,000 units. A separate 

report revealed that the US producer price index rose 0.2% last month, beating forecasts for a 0.1% gain, while core 

producer prices were also up 0.2%. 

EUROPEAN MARKET:

The European markets exhibited mixed trend during the passing week, while the US concern kept weighing the 

sentiments, the weakness in Chinese manufacturing too impacted the indices in the region. Though by the end the 

major indices steadied improving along with Wall Street, the Eurozone's private sector economy expanded for the 

eighth successive month in February, but the pace of improvement slowed unexpectedly as recovery remains fragile 

and uneven. The flash composite output index, fell to 52.7 in February from January's 31-month high of 52.9. 

Consumer price inflation in the UK dropped below the 2 percent target for the first time since November 2009, 

giving room for the Bank of England to leave its record low interest rates unchanged for some more time and avoid 

any rate hike that risks economic recovery. Factory-gate inflation also moderated in January, reflecting decreases in 

petroleum and pharmaceutical products. Consumer price inflation in the U.K. eased to 1.9 percent in January from 2 

percent in December. The rate was expected to remain at 2 percent. 

ASIAN MARKET:

Most of the Asian equity indices snapped the passing week with good gains, though the Chinese markets showed some 

weakness after the preliminary February reading released by HSBC Holdings Plc and Markit Economics for Purchasing 

Managers’ Index stood at 48.3 compared with January’s final figure of 49.5. However, the numbers raised hope that softening 

factory output may encourage policy makers to take steps to support economic expansion. Also, the Chinese data in January 

and February were distorted by the shifting timing of the weeklong Lunar New Year holiday. 

Japanese market showed good surge in the passing week taking cues from the US markets and the weakness in yen. However, 

on economy front the Japanese trade deficit widened to a record in January as surging import costs weigh on Prime Minister 

Shinzo Abe's campaign to drive a sustained recovery. Imports rose 25% from a year earlier and outbound shipments gained 

9.5%.