Sunday, March 9, 2014

NSE and BSE Weekly Analysis 7th March 2014

Key benchmark indices edged higher in the week ended Friday, 7 March 2014 on speculation the  National Democratic Alliance (NDA) will be able to form the next government at Centre. The barometer index, the S&P BSE Sensex, and the 50‐unit CNX Nifty, both, settled at record closing high indicating strength in the market.  During the week ending 7th March the market gained in four out of   five trading sessions in the week just gone by. The BSE Mid‐Cap and the BSE Small‐Cap indices  under performed the Sensex during the week.

In the week ended Friday, 7 March 2014, the 30‐share S&P BSE Sensex rose 799.67 points or 3.79%  to 21,919.79, a record closing high. The 50‐unit CNX Nifty gained 249.70 points or 3.98% to 6,526.65,  a record closing high.The S&P BSE Mid‐Cap index rose 193.02 points or 2.97% to 6,693.44 and the  S&P BSE Small‐Cap index gained 167.41 points or 2.6% to 6,612.45. Both these indices under performed the Sensex.

Realty: 
The BSE Realty index rose by 12.97% for the week ended 7th Mar 2014 to close at 1,360. The major  gainers were Prestige Estates, DLF, D B Realty, H D I L and India bull Real Est rose by 31.98%, 18.61%,  17.16%, 14.83% and 14.68% respectively, on speculation the National Democratic Alliance (NDA) will  be able to form the next government at Centre.

Bankex: 
The BSE Bankex Index rose by 10.44% to close at 13567 levels. The major gainers were Yes Bank, Bank of Baroda and ICICI Bank rose by 23.28%, 17.95% and 15.10% respectively, after data released by the Reserve Bank of India (RBI) showed that India's current account deficit declined sharply in Q3 December 2013. Investor sentiment was boosted by good FII buying, softening of geopolitical
tensions related to Ukraine and the Finance Minister's assurance of support for PSU banks.

Capital Goods: 
The BSE Capital Goods gained 8.15% to close at 11,221 levels for the week ended 07th Mar 2014. The major gainers were IL&FS Transport, Crompton Greaves, A B B, SKF India and B H E L rose by 18.26%, 13.16%, 12.40%, 10.67% and 9.87% respectively, on speculation the National Democratic Alliance
(NDA) will be able to form the next government at Centre. Bharat Heavy Electricals advanced as Life Insurance Corporation of India bought 4.66% stake in the company from the Government of India through a bulk deal. With the block deal, the government's stake in Bhel has come down to 63.05%, from 67.72% earlier.

Health Care: 
The BSE HC index declined 4.33% to close at 10,370 levels. The major losers were Glaxosmit Pharma, Ipca Labs, Dr Reddy's Labs, Piramal Enterp and Sun Pharma.Inds fell by 13.02%, 6.66%, 6.04%, 4.92% and 4.75% respectively, as investors offloaded defensive stocks in favour of hih beta stocks as key
benchmark indices scaled record high. A strong rupee was another trigger for profit taking in pharma stocks. Pharma companies earn substantial revenue from exports. Dr Reddy's Labs ended lower, on concerns that its sales in Russia and Ukraine would be hit with the region accounting for 14.5% of the company's sales.

IT: 

The BSE IT index lost 2.78% for the week ended 07th Mar 2014 to close at 9,520 levels. The major losers were Indian Infotech, Mindtree, HCL Technologies, Wipro and Oracle Fin.Serv fell by 9.26%, 5.94%, 5.83%, 5.23% and 3.11% respectively, on the recent strength in rupee against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.

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