The slide tide
India part of gloomy global market; currency crisis continues
Last week began on a strong note on expected lines. The markets were up a good 320 points on the SENSEX and 100 points on the NIFTY midway on Tuesday. The gains were wiped out in the next two days and we had a weak expiry on Thursday. Friday was a sell off on global cues, coupled with GDP numbers well below even the weakest of expectations. GDP for the March quarter was a mere 5.3 per cent, and the manufacturing sector was negative at 0.3 per cent. The day's losses were the weekly losses as by the previous day, markets had become flat for the week. The BSE SENSEX lost 252.66 points or 1.56 per cent. The NSE NIFTY lost 78.80 points or 1.6 per cent. The broader indices like the BSE500, BSE200 and BSE100 lost 1.53 per cent, 1.55 per cent and 1.62 per cent respectively. The BSE MIDCAP was down 1.1.34 per cent, while the BSE SMALLCAP lost 1.96 per cent.
The sectoral indices hardly had gainers with the BSE IT gaining 0.53 per cent and the BSE FMCG closing almost flat at 0.02 per cent. On the losing side, the BSE AUTO lost 6.05 per cent, BSE CAPITAL 3.49 per cent and BSE BANKEX lost 1.97 per cent. In individual stocks, the top gainers were Hindalco up 4.11 per cent and Coal India up 2.57 per cent. The top loser was Tata Motors which lost 16.65 per cent, Sterlite 5.79 per cent, ONGC 4.20 per cent and ICICI Bank 4.17 per cent.
FIIs continued to be sellers with net sales of Rs 697 crore while Domestic Institutions too turned sellers of Rs 275 crore. The Indian Rupee continued to be under pressure and after making new lows closed weaker at Rs 55.59. The oil companies have reduced petrol prices by about Rs 2 per litre with effect from midnight of June 2. This move has come two days later than expected, because it would have been seen to be under pressure of the Bharat Bandh, called by the opposition on the May 31.
The last word on this price hike is not over. As regards diesel hike, one is still waiting for the day EGOM finally decides to meet.
Delhi High Court passed its order in the case between Indraprashta Gas and the regulator PNGRB on Friday. The Court ruled in favour of the company and said that the regulator had no power to fix any component of network tariff or Compression Charges, for any entity having its own distribution network. This order saw the shares of IGL, Gujarat Gas and GSPL gain sharply in an otherwise bad day at the markets. It appears that the above counters are still oversold and could see some more gains in the coming days. Shares of IGL gained Rs 42.70 or 20.66 per cent to close at Rs 249.35.
Speciality Restaurants Limited the owners of the brand 'Mainland China' listed on the exchanges on Wednesday, May 30. The company had issued shares at Rs 150 and raised Rs 175 crore. The share closed the week at Rs 167.30, a gain of Rs 17.30 or 11.53 per cent. The high of the week was Rs 177.05. Day one saw Reliance mutual fund buying into the share. One is not sure whether the present up move would last or the share has peaked out on Friday.
Markets globally are not doing well and India is no exception. In May, the SENSEX has lost a staggering 1,100 points while the NIFTY has lost 324 points. Our GDP numbers are
shocking. The government seems to be shocked into a paralysis. No decision seems to be taken by just about anybody. The Rupee seems to be slowly but steadily sinking. In such a scenario, one cannot hope for much and there is not much of expectation either.
In this week, the BSE SENSEX has support at 15,857 points, then at 15,750 points, then at 15,564 points and finally at 15,406 points. It has resistance at 16,149 points, then at 16,361 points, then at 16,484 points and finally at 16,671 points. The NSE NIFTY has support at 4,807 points, then at 4,775 points, then at 4,713 points and finally at 4,655 points. It has resistance at 4,900 points, then at 4,962 points, then at 4,993 points and finally at 5,045 points.
The week ahead is a tough one with no clear trends or cues available. Global markets were weak on Friday and the employment numbers in the US were a cause for concern. Greece elections to be held next week would be the focus of attention and how they could create problems for the Eurozone going forward. Trade cautiously in a week, which does not have many good tidings in store.