STOCKS:
The curtailed trading session for Indian equities in the week ended Thursday saw a benchmark index end in the negative terrain for the third straight week – resulting in a loss of 10 per cent since the record high it attained on March 4.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened slightly higher for the week at 27,565.49 points, against the previous close at 27,437.94 points. But it ended 426.63 points lower at 27,011.31 points, with a loss of 1.55 per cent.
Thursday’s close was the lowest since 26,908.82 points which the key index had ended on Jan 7. On Monday, the index fell 260.95 points or 0.95 per cent, followed by a rise of 0.81 per cent. On Wednesday and Thursday, the key index fell 0.62 percent and 0.79 per cent, respectively.
At the National Stock Exchange (NSE), a similar trend was seen and the broader 50-scrip Nifty closed at 8,181.50, with a loss of 123.75 points or 1.49 per cent.
The reasons attributed for the fall were many. Notable among them was the rush to square up deals for the futures and options trading for the month of April, as also the persistent worry over the government’s stand on retrospective taxation on capital gains made by foreign funds.
The funds were net sellers in the secondary equity markets in India on each of the four trading days of the week under review, offloading shares worth some $725.77 million. In the past month, the market-cap of BSE-listed stocks was down Rs 178,000cr.
“Government’s stance on capital gains tax, delay in passage of key reform-centric legislative proposals, weak Q4 corporate earnings and gloomy monsoon forecast which is likely to further dent rural demand kept the risk-appetite under check,” said brokerage firm Sharekhan.
Within the 12 sector-specific indices of the Mumbai bourse, the top loser was the one for fast moving consumer goods, down 5.19, followed by metals, down 1.98 per cent and oil and gas, down 1.94 per cent. The indices of banking, auto and power rose between 1.73 per cent and 0.16 per cent.
Top Gainers
Among the Sensex stocks, Axis Bank was the top gainer, up 7.64 per cent at Rs 567.85, followed by ICICI Bank, up 7.51 per cent at Rs 331.25, Maruti, up 5.43 per cent at Rs 3,732.05, Wipro, up 2.95 per cent at Rs 538.55 and Sesa Sterlite, up 2.41 per cent at Rs 210.00.
Top Losers
The losers were led by ITC, down 7.17 per cent at Rs322.25, HDFC, down 6.05 per cent at Rs1,169.40, Dr. Reddy’s, down 5.10 per cent at Rs 3,308.20, Hind Unilever, down 4.50 per cent at Rs 849.50 and Bharti Airtel, down 4.41 per cent at Rs 381.65.
Analysts do not see any drastic change in the investor mood next week.
“In the coming week, next batch of fourth quarter March 2015 results, proceedings in Parliament and the outcome of monthly manufacturing and services sector surveys will dictate the near-term trend on the bourses,” said Sharekhan. “Trends in investment by foreign and domestic institutional investors will be keenly watched.”
FOREX:
In a mixed pattern of trading, the Indian rupee broke its two-week of losing spree and appreciated by 14 paise to settle the shortened week at 63.42 against the Greenback following fresh dollar selling by exporters and some banks on the back of weak USD overseas.
The Forex market was closed on Friday, May 1, 2015, on account of “Maharashtra Day”. Sluggish local equities amid heavy offloading by foreign portfolio investors (FPIs) mainly put pressure on the rupee value, a forex dealer said.
FPIs pulled out USD 610.63mn during the first three days of the week, as per Sebi data. The rupee commenced weak at 63.70 a dollar from last weekend’s close of 63.56 at the Interbank Foreign Exchange (Forex) market but immediately touched a four-month intra-day low of 63.77 a dollar – level not seen when it had logged an intra-trade low of 63.79 on December 30, 2014 – on heavy dollar demand from importers, mainly oil refiners, to meet their month-end requirements.
Later, it bounced back to a high of 63.11 before giving some ground to settle lower at 63.42, still showing a rise of 14 paise or 0.22 pct. In last two-week, it had fallen by 125 paise or 2.01 pct.
In overseas market, the dollar showed weak trend on renewed concerns over the US economy after the Federal Reserve left open the chance of an inter-rate hike as early as June.
Pramit Brahmbhatt, Veracity Group CEO, said, “Rupee recovered this week and closed at 63.42. RBI is not in a mood to allow the currency to appreciate and we can see weakness from here going forward. It would be in the interest of the economy that we can see some weakness because the export competitiveness is being affected with the relative strength of the currency in the global perspective.”
“The trading range for the Spot USD/INR pair is expected to be within 63.00 to 63.80,” he added.
Forward dollar premium continued its downslide on constant receiving by exporters.
The benchmark six-month forward dollar premium payable in September dropped to 188-190 paise from 119.5-202 paise last weekend and far-forward contract maturing in March also dipped to 401-403 paise from 415.5-417 paise.
The RBI fixed the reference rate for the US dollar at 63.5780 and the Euro at 70.5334 from preceding weekend’s level of 63.4006 and 68.4853, respectively. The rupee tumbled further against the pound sterling to end the week at 97.77 from 96.17 previously weekend and also plunged to 70.95 per euro from 68.84.
It remained weak against the Japanese yen to end at 53.33 per 100 yen from 53.19 from preceding weekend’s level.
BULLION:
After moving both ways largely in line with global trend amid easing demand from jewellers, gold ended Rs 130 lower at Rs 27,030 per ten gram at the bullion market during the past week. Silver, however, managed to end higher on increased off take by industrial units and coin makers.
Bullion traders said gold falling to a six-week low in volatile trading in overseas market on speculation that the Federal Reserve is moving closer to raising US interest rates, mainly led to decline in gold prices.
Gold in New York, which normally set price trend on the domestic front, fell to settle at USD 1,174.50 an ounce. Earlier, the price touched USD 1,168.40, the lowest since March 20.
In the national capital, gold of 99.9 and 99.5 per cent purity commenced the week on bearish note at `27,050 and ` 26,900 per ten grams but soon met with fresh buying support from jewellers and retailers supported by wedding season and climbed to over three-month high at Rs 27,475 and Rs 27,325 per ten gram respectively.
Later, it turned weak in tune with weak global trend and finished at Rs 27,030 and Rs 26,880 per ten gram respectively, showing a fall of Rs 130 each. Sovereign, however, maintained steady at Rs 23,700 per piece of eight gram throughout the week in scattered deals.
Silver witnessed volatile movements on alternate bouts of buying and selling and finally settled higher by Rs 860 to Rs 37,210 per kg. Similarly, silver weekly-based delivery closed up by Rs 590 to Rs 36,540 per kg. Silver coins spurted by Rs 1,000 to Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.