Shifting markets

Markets moved between gains and losses during the week

During the week markets were seen shifting between gains and losses with buying interest only in selected stocks. But the foreign institutional investors remained buyers for the week, which provided support for the markets. Nifty closed at 6276 up around 1.25 per cent on weekly basis.

On the back of robust sales in export markets, Sanofi India posted over two-fold increase in its net profit for the quarter ended December 31, 2013. The net profit stood at Rs 92.7 crore as compared to Rs 44.8 crore during the same period last fiscal.

The healthcare company’s total income from operations also rose 15 per cent to Rs 488.30 crore for the quarter as compared to Rs 422.80 crore in the quarter ended December 2012. The board proposed a final dividend of Rs 35 per equity share.

During the last quarter of the calendar year, private equity investments saw a 74 per cent rise in India in value terms. Private equity invested $ 2.12 billion (about Rs 13,144 crore) for the period in 76 deals which is the highest amount of capital invested in the period since 2007. The IT and IT enabled services (ITeS) were the leaders in terms of value and volume with 37 deals worth $ 959 million in the fourth quarter of the calendar year 2013.

The RBI said that all the secondary market over-the-counter trades in corporate bonds and securitised debit instruments by the entities would be regulated by the central bank within 15 minutes of the trade on any of the three stock exchanges (NSE, BSE and MCX-SX) from April 1. The central bank also said that he trades may be cleared and settled through any of the clearing corporations.

In the beginning of the week, the US markets were down as of the options expiry. Also most of the economic data announced in favor of bears. In the Asian front, the major concerns were on the Chinese economy as well as political worries in other big emerging countries. But the comments from the US Federal Reserve Chair shore up the markets. The Fed chairperson said that the US central bank is likely to stay with its plan to scale back its stimulus measures.

For Indian markets next week, HSBC manufacturing PMI and Services PMI will be major data. Natural rubber price may show firm trends in the near term. Low international price for the product and higher import of natural rubber price by the tyre manufacturers are the major causes of the price decline.

Government support will help the price to gain, spot price if moves above R 147, then it can easily test R 155 and more in coming days. Counters like Reliance Industries, Tata Steel and Bajaj Auto are likely to trade negatively if there is a decline in Nifty.

Alex K Mathews is the author of Financial Services And Systems, as well as Option Trading: Bear Market Strategies published by Tata McGraw Hill. He is also the technical and derivatives research head of Geojit BNP Paribas Financial Services Ltd.

The author may have a vested interest in investments he has recommended. Feel free to e-mail him at Geojit BNP Paribas has membership in, and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

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