Stock: After respite for a week,the S&P BSE benchmark Sensex resumed its downward journey,tumbling almost 386 points to log more than four-months closing low of 18,450.23 during the first week of the new financial year as the market reeled under a slew of negative factors.
The market sentiment was dented by renewed fears of early general elections amid concerns over Q4 corporate earnings. Weak global cues following eurozone debt crisis and capital outflows also weighed heavily on the bourses.
Shares of FMCG,metal,teck,auto,IT,consumer durable,and capital goods firms declined sharply due to heavy selling from operators and investors.
However,shares of healthcare and refinery sectors firmed up on good buying enquiries. Small-cap stocks continued to remain in demand on heavy buying by retail investors. As a result,the S&P BSE-Smallcap index outperformed the Sensex and rose smartly by 1.89 per cent.
The 30-share Sensex resumed up at 18,890.81 and firmed up further to hit a high 19,060.51 after Finance Minister P Chidambaram reiterated the Government’s commitment to additional economic reforms and pro-growth stance.
However,the BSE benchmark later succumbed to profit- booking following 2.5 per cent fall in February production of eight core sector industries. It dropped to 18,389.29 before ending the week at more than four-month low of 18,450.23,a loss of 385.54 points,of 2.05 per cent. Last week,the key index had gained 100.17 points,or 0.53 per cent.
The NSE’s 50-share index Nifty also dropped by 129.30 points,or 2.28 per cent,to settle at 5,553.25.
Apart from poor core sector data,a HSBC survey too dampened sentiments. According to the survey,India’s manufacturing sector witnessed the slowest rate of expansion in 16 months in March as power outages hampered production activity and new business orders declined.
“Current market movement is driven by global worries over mounting tension in the Korean peninsula and political situation on the domestic front. Market players are worried about the fate of some key pending bills,which could open some positives for Indian economy,” said a report by UK-based advisory company Equentis Capital.
Private lenders,including ICICI Bank and HDFC Bank,fell on worries over loan growth amid subdued economic scene.
“FIIs too turned net sellers to the tune of Rs 825.88 crore in the last four trading sessions of the week which further weakened sentiments. Political uncertainties along with concerns over continuing slow growth in many segments of economy has led the investors to adopt cautionary approach and book profits on every rally,” said Rakesh Goel,Senior Vice- President,Bonanza Portfolio Ltd.
Outside the benchmark indices,sugar stocks posted gains as Government partially decontrolled the sector by giving freedom to millers to sell the commodity in open market and removed their obligation to supply sugar at subsidised rate to ration shops. Shares of Andhra Sugar,Balrampur Chini,Oudh Sugar Mill and Uttam Sugar,among others,rose.
Ignoring the depressed market,Maruti Suzuki flared up by a hefty 9.86 per cent and emerged as the top gainer from the Sensex pack on the back of a weak yen which would boost the leading carmaker’s margins by reducing the cost of imports.
21 scrips out of the Sensex pack ended in red while nine others finished in green.
Major losers from the sensex pack were Bharti Airtel (7.25 pct),HDFC (6.68 pct),ITC (5.71 pct),Bajaj Auto (5.46 pct),Tata Motors (5.20 pct),Sterlite Ind (4.85 pct),TCS (4.57 pct),Icici Bank (4.53 pct),Hero Motoco (4.11 pct),Jindal Steel (3.86 pct),Hindalco Ind (1.86 pct) and Tata Steel (1.22 pct).
However,Dr Reddy’s Lab rose by 8.15 pct followed by Sun Pharma 5.04 pct,Wipro 4.03 pct,Cipla 1.72 pct,HUL 1.07 pct,RIL 0.86 pct and ONGC 0.83 pct.
Among the major indices,the S&P BSE-FMCG fell by 3.30 pct followed by S&P BSE-Metal 2.74 pct,S&P BSE-Teck 2.62 pct,S&P BSE-Auto 2.53 pct,S&P BSE-IT 2.24 pct,S&P Bankex 2.23 pct,the S&P BSE-CD 2.18 pct and S&P BSE-CG by 1.14 pct.
The S&P Dollex-30 and the S&P Dollex-100 also dropped by 2.92 pct and 2.80 pct respectively.
However,the S&P BSE-HC and the S&P BSE-Oil&Gas rose by 2.50 pct and 1.08 per cent respectively.
The total turnover at BSE and NSE rose to Rs 8,699.64 crs and Rs 45,345.87 crs respectively during the week as against the last weekend’s level of Rs 6,906.07 crore and Rs 23,955.64 crore.
Oil and oilseeds: Edible oils ended mixed,while the non-edible oils declined further at the oils and oilseeds market during the week under review.
Groundnut oil prices firmed up further on higher offtake from stockists and retailers on the back of forthcoming festivities.
Refined palmolein eased reduced retail buying support following bearish Malaysian advices.
Castorseeds bold and castoroil commercial also went down due to subdued demand from shippers and soap industries.
Castorseeds futures fell owing to speculative selling pressure amid weak export enquiries.
Linseed oil moved down on sluggish demand from paint and allied industries.
In the edible oils segment,groundnutoil prices resumed steady at Rs 1,210,but later rose to close at Rs 1,230 per 10 kg from last weekend’s level of Rs 1,210,showing a gain of Rs 20 per 10 kg.
Refined palmolein opened lower at Rs 507,but later moved up to Rs 511 before settling at Rs 510 from preceding weekend’s level of Rs 512,showing a mere loss of Rs 2 per 10 kg.
In the non-edible section,Castorseeds bold resumed stable at Rs 3,575 and later gained to Rs 3,600 before ending at Rs 3,565 from last weekend’s level of Rs 3,575,a modest loss of Rs 10 per 100 kg.
Castoroil commercial also opened steady at Rs 745 later moved up to Rs 750 before settling at Rs 743 from its previous weekend’s level of Rs 745,showing a mere loss of Rs 2 per 10 kg.
Linseed oil resumed lower to rule stable at Rs 790 from its preceding weekend level of Rs 795,showing a decline of Rs 5 per 10 kg.
Moving to the futures section,castorseeds for June delivery resumed slightly lower at Rs 3,850,but later surged to Rs 3,923 before drifting to conclude at Rs 3,794 from last Saturday’s closing level of Rs 3,859,showing a fall of Rs 65 per tonne.
Dry Fruits: Cashew and pistachio prices drifted in the wholesale dry fruits market during the week under review due to fall in demand from local parties and stockists at existing higher levels.
In addition,increased arrivals from producing belts also put pressure on the prices.
Sentiments turned bearish following fall in demand from stockists and retailers at higher prices amid increased supplies.
Cashew kernel (No 180,210,240 and 320) declined by Rs 5 each to settle Rs 700-740,Rs 660-685,Rs 580-600 and Rs 500-550 per kg,respectively,following a weak trend in upcountry markets.
Cashew kernel broken (4 and 8 pieces) traded lower by Rs 285-340 and Rs 235-300 against previous closing of Rs 285-350 and Rs 235-300 per kg.
Copra prices declined by Rs 100 to Rs 5,700-6,000 per quintal on reduced offtake.
Pistachio hairati and peshwari also fell by Rs 10 each to settle at Rs Rs 700-820 and Rs 950-980 per kg,respectively.
On the other hand,almond california rose by Rs 100 to conclude at Rs 13,100 per 40 kg.
Kishmish Indian yellow and green also traded higher at Rs 3,600-4,200 and Rs 4,000-7,000 against previous closing of Rs 3,300-4,100 and Rs 3,400-7,000 per 40 kg,respectively.
Pramit Brahmbhatt,CEO,Alpari Financial Services (India) said,”Indian shares have lost over 3 per cent in the last three sessions,taking cues from the concerns that foreign investors would start selling after being net buyers of over USD 10 billion so far this year and about USD 25 billion last year.”
“Also,the concerns over India’s record current account deficit and political issues dented the investor’s vision over Indian domestic markets. As a result,the rupee has fallen 0.96 per cent this week,its second week of fall in three. We can expect USDINR to trade over 55 (spot) next week,the trading range for the same is expected to remain between 54.50 – 55.50,” he added.
The rupee premium for the forward dollar ended better on fresh paying pressure from banks and corporates.
The rupee premium for the benchmark six-month forward dollar payable in September closed up at 192-194 paise from last weekend’s level of 190-191-1/2 paise and far-forward contracts maturing in March also finished higher at 366-368 paise as against 359-361 paise.
The RBI fixed the reference rate for the US dollar at 54.8803 and for euro at 70.9044 as against the last weekend’s level of 54.3893 and 69.5438.
The rupee fell back sharply against the pound sterling to 83.43 from preceding weekend’s level of 82.12 and also reacted downwards against the euro to end at 70.84 from previous weekend’s close of 69.49.
However,it bounced back against the Japanese yen to settle at 57.00 per 100 yen from last weekend’s level of 57.63.