1. India Market Summary for the week ended 21-2-2014
I Review of the Week
Market review for the week ended 21 February 2014
• Market edged higher during the week ended Friday, 21 February
2014. Gains were triggered by the Finance Minister P Chidambaram
saying that the fiscal deficit will be contained at 4.6% of GDP for the
year ending 31 March 2014 (2013-14) and will be pruned further to
4.1% of GDP in 2014-15 and that the current account deficit (CAD)
will be contained at $45 billion in 2013-14 at the time of presenting
Interim Budget for 2014-15
• The market gained in four out of five trading sessions in the week
just gone by.
• Sensex rose 1.64% to 20,700.75 and Nifty gained 1.77% to 6,155.45
in the week ended Friday, 21 February 2014
• Among the 30-share Sensex pack, 19 stocks gained and rest of them
declined in the week ended Friday, 21 February 2014.
2. India Market Summary for the week ended 21-2-2014
Government Policies during the week
• Finance Minister P Chidambaram in Interim Budget for 2014-15 presented on
Monday, 17 February 2014 said that the fiscal deficit will be contained at 4.6% of
GDP for the year ending 31 March 2014 (2013-14) and will be pruned further to
4.1% of GDP in 2014-15 and that the current account deficit (CAD) will be
contained at $45 billion in 2013-14
• Lawmakers passed a bill to create India's 29th state on Thursday, 20 February 2014
despite mayhem in parliament, as opponents made a futile last attempt to stop the
upper house carving landlocked Telangana from coastal Andhra Pradesh
• Reserve Bank of India said it will conduct term repo auctions in March 2014 to
address liquidity tightness in the banking system.
Economic data
• India's merchandise exports are projected to expand 6.3% to $326 billion in 2013-14
3. Corporate Announcements
• Auto, capital goods shares gain on favorable announcements in interim budget
• HDFC (up 3.46%) and ONGC (up 0.4%) edged higher from the Sensex pack.
• Coal India (down 3.59%) and GAIL (India) (down 0.74%) edged lower from the Sensex
pack.
• ITC shed 0.72% and Reliance Industries fell 1.24%.
• Auto stocks gained. The government reduced excise duty on cars, commercial vehicles, sports
utility vehicles (SUVs), motorcycles and scooters for the period up to 30 June 2014 in the in
the Interim Budget for 2014-15 announced on Monday, 17 February 2014.
• Mahindra & Mahindra gained 3.26%. The company announced a reduction in prices of its
passenger vehicle portfolio ranging from Rs 13000 to Rs 49000. The company will also
reduce prices of its premium SUV, the Rexton by up to Rs 92,000. The reduction is due to the
lower excise duties announced in the Interim Budget and would be
• Tata Motors (up 2.01%) and Maruti Suzuki India (up 1.9%) gained.
• Hero MotoCorp lost 0.95%. The company said that the company has decided to pass on the
entire benefit of the excise duty reduction to customers. Hero MotoCorp said it has
judiciously spread out the price cut across the product portfolio ranging from 2% going up to
5% with the maximum reduction being Rs 4,500 per unit
• Bajaj Auto rose 0.98%.
• Capital goods stocks edged higher. The government announced reduction in excise duty on
some capital goods to 10% from 12% in the interim budget on Monday, 17 February 2014.
4. Corporate Announcements
• Bharat Heavy Electricals (Bhel) (up 1.42%) and L&T (up 5.9%) gained. The excise duty has been cut from
12% to 10% for a period up to 30 June 2014 for capital goods and consumer durable falling under chapter 84
and chapter 85 of the Schedule to the Central Excise Tariff Act.
• Tata Power Company gained 6.57%. Forty-nine days after Arvind Kejriwal took charge of a minority
government in Delhi, Kejriwal resigned following a tumultuous day in the assembly where the Congress and
BJP legislators defeated the AAP's attempts to introduce the Jan Lokpal bill aimed to curb corruption in high
places. .
• Bank stocks were mostly higher. Among private sector banks, ICICI Bank (up 3.68%), HDFC Bank (up
3.08%) and AXIS Bank (up 7.89%), gained.
• State-run State Bank of India rose 1.9%. The bank said that it has revised downwards the interest rates on bulk
term deposits for Rs 1 crore and above
• Metal stocks were mostly lower. Sesa Sterlite (down 1.95%) and Hindalco Industries (down 2.25%) fell. Tata
Steel rose 0.77%.
• A Chinese manufacturing index dropped more than estimated this month. China is the world's largest consumer
of copper and aluminum.
• Pharma pivotals gained on renewed buying. Sun Pharmaceutical Industries rose 0.88%; Dr. Reddy's
Laboratories rose 5.78% . Cipla fell 1.08%
• IT stocks edged higher. Wipro (up 1.38%), and Infosys (up 2.91%) gained.
• TCS advanced 1.8%. The company said that it has partnered with the Finnish Wheelchair Curling Team,
supporting the team in their quest for Olympic glory at the Paralympic Winter Games in Sochi.
• IT stocks were boosted by positive economic data in US, the biggest outsourcing market for the Indian IT firms.
• Bharti Airtel dropped 5.57%. The company said that it is not satisfied with the judgment of the Court of
Appeal, Lagos delivered on 14 February 2014 and will lodge an appeal against that decision at the Supreme
Court of Nigeria.
5. India Market Summary for the week ended 21-2-2014
Top Gainers and Losers of the week (NSE)
PRICE ON
AXIS BANK
ULTRATECH CEMENT
AMBUJA CEMENT
JAIPRAKASH ASSO.
TATA POWER
COMPANY
NMDC LTD
BHARTI AIRTEL
COAL INDIA
BANK OF BARODA
HINDALCO
Feb 21,
2014 (Rs)
1,193.35
1,799.95
162
41.85
78.8
Feb 14,
2014 (Rs)
1,103.05
1,666.35
151.15
39.1
73.85
PRICE ON
COMPANY
PRICE ON
PRICE ON
Feb 21,
2014 (Rs)
137.15
288.15
251.25
518
97.65
Feb 14,
2014 (Rs)
145.45
305.4
260.8
536.3
99.9
CHANGE
(%)
8.20%
8.00%
7.20%
7.00%
6.70%
CHANGE
(%)
-5.70%
-5.60%
-3.70%
-3.40%
-2.30%
6. India Market Summary for the week ended 21-2-2014
II Forth coming week
Government policies / announcements
• Futures trading on the National Stock Exchange's (NSE) volatility index
-- India VIX -- begins from Wednesday, 26 February 2014
Economic data
• On the macro front, the government will unveil data on gross domestic
product (GDP) for Q3 December 2013 on Friday, 28 February 2014.
• The near month February 2014 F&O contracts expire on Wednesday, 26
February 2014
7. India Market Summary for the week ended 21-2-2014
Market outlook
• Expiry of the near month February 2014 futures and options (F&O)
contracts may trigger volatility on the bourses in a truncated trading week.
• The near month February 2014 F&O contracts expire on Wednesday, 26
February 2014.
• The stock market remains closed on Thursday, 27 February 2014, on
account of Mahashivratri.
• Macroeconomic data, trend in investment by foreign institutional investors,
trend in global markets, trend in other global emerging markets, the
movement of rupee against the dollar and crude oil price movement will
dictate the near term movement on the domestic bourses.
• Concerns about slowdown in capital inflow may weigh on the domestic
bourses after a Federal Reserve report this week showed support for a plan
to reduce monetary stimulus for the US economy.
• Fed's bond-buying program has been a source of liquidity for most Asian
and emerging markets over the past few years.
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