 |
| stock future tips |
The BSE Midcap index slipped just 0.4%, while the BSE Smallcap index bucked the trend to surge 0.6%
The market settled lower for the first time in four weeks with the tax
relief for foreign portfolio investors (FPIs) and the resolution of dual
control issue on Goods and Services Tax (GST) failing to outweigh the
negative earnings from financials, International Monetary Fund (IMF)’s
100 basis points cut in growth forecast and global concerns ahead of US
president-elect Donald Trump’s swearing-in ceremony. Trump took
presidency oath post market hours on Friday.
During the week ended January 20, the S&P BSE Sensex fell 0.7% or 203 points to settle at 27034, while Nifty50 lost 0.6% or 51 points to close the week at 8349.
Midcap and Smallcap stocks outperformed. The BSE Midcap index slipped just 0.4%, while the BSE Smallcap index bucked the trend to surge 0.6% for the week.
Among Sensex stocks,
Reliance Industries, Axis Bank and Coal India plunged 6%, 4.8% and
3.5%, respectively, while Adani Ports lost 3.1%, Infosys dipped 2.7%,
while ONGC slumped 2.2%.
Gainers included Hindustan Unilever, Asian Paints and ITC, which
rallied 4%, 3.5% and 2.4%, respectively. Tata Steel gained 1.8%, Gail
(India) 1.7%, and Tata Motors added 1.6%.
"Till Thursday, Q3 results were coming marginally above expectations
and the market was holding a positive view. However, a poor set of
numbers led by financials has annoyed the investors turning them
cautious. Additionally, commodity stocks are losing their attractiveness
due to consolidation ahead the Trump swearing-in ceremony today. IT and
Pharma stocks will be keenly watched as the segment may be effected from the upcoming US policies."
The week saw foreign outflows abating after the Central Board of Direct
Taxes put in abeyance its earlier circular that had raised foreign
investors' concerns over a potential rise in tax liability under
indirect transfer provisions. Street also welcomed the GST Council breaking
deadlock over issues of administrative control over assesses, which
broadly agreed to roll out the GST from July 1, instead of the earlier
deadline of April 1.
However, IMF’s disappointing growth forecast dampened bullish spirit
right before global sentiment turned cautious after US Fed chair Janet
Yellen’s slightly hawkish comments over future rate hikes, European
Central Bank’s policy meeting and Trump’s inauguration.
MARKET NEXT WEEK
Amid ongoing earnings season with Budget 2017 approaching, the market
is expected to witness heightened volatility in a holiday-truncated
expiry week. Investors will react to Trump’s inauguration speech on
Monday, wherein he hinted again at his protectionist stance by
reiterating US policy will be to buy American and hire American, while
earnings results of heavyweights like, HUL, HDFC, Bharti airtel and
Ultratech will also be in focus.
0 comments:
Post a Comment