Bears take hold of the mood in these unpredictable times
BJP workers shout victory slogans to celebrate their party's success in the North-East Assembly elections, in Kolkata. Pic/PTI
Markets continued to be volatile and are in the process of finding a base. The mood on Tuesday was one of over optimism and markets corrected sharply from there, sending them into negative territory and in the process changing the mood to bearish as well. The BSESENSEX lost 95.21 points or 0.28 per cent to close at 34,046.94 points while NIFTY lost 32.70 points or 0.31 per cent to close at 10,458.35 points. The broader indices saw the BSE100, BSE200 and BSE500 lose 0.33 per cent, 0.30 per cent and 0.20 per cent respectively. BSEMIDCAP was down 0.61 per cent. The BSESMALLCAP though, gained 0.49 per cent.
ADVERTISEMENT
Sector scene
The top sectoral gainer was BSEAUTO up 1.98 per cent followed by BSEOIL&GAS 0.89 per cent and BSECAPGOOD 0.71 per cent. The top loser was BSEMETAL down 1.98 per cent followed by BSEBANKEX 1.65 per cent and BSEHEACARE 1.38 per cent. In individual stocks, the top gainer was Eicher Motor up 3.67 per cent followed by Aurobindo Pharma 3.57 per cent and Indian Oil 3.32 per cent. The top loser was Sun Pharma down 6.68 per cent followed by ICICI Bank 5.26 per cent and Bank of Baroda 5.20 per cent. Dow Jones had another week of correction and lost 424.42 points or 1.73 per cent to close at 24,538.06 points. The rupee depreciated by 44 paisa or 0.68 per cent to close at Rs 65.17 to the US dollar.
Traders on the floor of the Dow Industrial Average at the New York Stock Exchange. US stocks tumbled joining a global selloff amid fears of a trade war. Pic/AFP
Primary eye
In primary markets news, the IPO from H G Infra Limited was subscribed 4.98 times with QIB portion subscribed 8.37 times, HNI 4.97 times and Retail 3.08 times. There are no issues slated during the week on the main board while there are many on the SME exchange. The week was full of news and a lot of them would have bearing when Parliament begins its session next week. The son of the former Finance Minister P Chidambaram has been arrested and sent to judicial custody. Election results in Tripura saw the 25-year rule of the Left being brought to an end with the BJP securing majority on its own and 2/3rd with its electoral ally. In Nagaland it would be able to form a government with its allies and while it is touch and go in Meghalaya, it could still be advantage BJP with its allies. The wins are significant and the entry into the North East of the country in state after state shows that the mindset is changing.
Noose tightens
Non-bailable warrants have been issued against Nirav Modi and his uncle Mehul Choksi. Further the number of arrests in the PNB scam continue to mount with the government determined to book the people involved. The noose seems to be tightening and an ordinance empowering the state to attach assets of absconding people has been passed. It would be a stormy session when Parliament begins but the government would get legislative business passed as no one would like to be seen as obstructing passage of bills to book absconders.
Clocking in
India clocked a GDP of 7.2 per cent for the quarter ended December 2017 and is back at being the fastest growing economy, overtaking China. Punjab National Bank shares seem to have bottomed out and closed at Rs 101 at the end of the week but not before touching a low of R92. The shares lost R 12.40 or 10.93 per cent during the week. Gitanjali Gems, the listed entity of Mehul Choksi lost R 4.50 or 18.15 per cent to close at R 20.30. Vakrangee shares continued to be under pressure and lost R 35.15 or 18.50 per cent to close at R 154.85. Shares are down from R 515.40 on January 24. The company had announced a share buyback on February 12. There is no update on the same so far.
Storm warning
Expect a stormy start to the Parliament opening with the arrest and PNB scam dominating proceedings. Election results and the ordinance on proclaimed offenders would be key events. With disruptions being the order of the day, expect markets to go nowhere in the current week. Global cues and update on the scam would decide market trends.
Catch up on all the latest Mumbai news, crime news, current affairs, and also a complete guide on Mumbai from food to things to do and events across the city here. Also download the new mid-day Android and iOS apps to get latest updates
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
