Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Stocks dance to FII tunes - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Apr 11, 2009

    Stocks dance to FII tunes

    Continuing from where they left off last week, the Indian markets maintained their upward momentum during the week gone by. In spite of having just three trading sessions, the BSE-Sensex ended higher by 4.4% over the closing levels of last week (which had four sessions). Other Asian markets such as Japan (up 2.4%), Hong Kong (up 2.4%) and China (up 1%) also ended the week on a positive note. As for other global markets, Barring the UK (down 1.1%), Brazil (up 2.6%), Germany (up 2.4%), US (up 0.8%) and France (up 0.5%) ended on a firm note.

    Coming to the performance of sectoral indices in India, stocks forming part of the realty, consumer durables and metal sectors emerged as top gainers during the week. The BSE-Realty and BSE-Metal indices recorded gains of 13.7% and 9.3% respectively. On the other hand, the BSE-FMCG Index (up 1.2%) and the BSE-IT Index (up 1.8%) were the lowest gainers. The BSE Small cap Index was on a roll last week, recording a gain of 9.3%. A handful of stocks recorded gains in excess of 30%.

    The past week saw strong buying activity from the foreign institutional investors (FIIs), wherein they pumped in a total of nearly Rs 13.5 bn. For the month of April 2009, the net FII inflow stands at Rs 10.5 bn. However, this is the highest figure recorded during the year. During the months of January, February and March, the net FII inflow / (outflow) stood at Rs (42) bn, Rs (24) bn and Rs 5 bn respectively.

    The BSE-Auto index gained 4% during the week. The Society of Indian Automobile Manufacturers (SIAM) has projected that the automobile sector is expected to be back on track and growth would pick up in FY10. As per a SIAM report, passenger and commercial vehicles are expected to grow between 3% to 5% and 7% to 10% respectively. Three wheelers and two wheelers are projected to grow between 0% to 5% and 5% to 8% respectively. This report has got a mixed response from the auto industry. It is believed that some companies are not convinced with the projections, while others are cautiously optimistic.

    A leading business daily has reported today that Infosys has fired nearly 2,100 employees on account of non-performance. As per the management, the company has sacked these employees after an annual performance appraisal of nearly 60,000 employees. It may be noted that the company currently has an employee base of nearly 105,000 which include 45,000 trainees. As reported, the trainees were not part of this appraisal exercise.

    The communications ministry has decided not to further grant fresh telecom licences. The reason behind the same is to prevent unhealthy competition in an already crowded telecom market. It is believed that the department of telecom received as many as 343 applications after September 25, 2007. However, all those who applied before the date have been given licences.

    Source: Yahoo Finance Source: Yahoo Finance

    Source: SEBI Source: BSE

    Source: BSE Source: BSE

    Movers and shakers during the week
    Company 2-Apr-09 9-Apr-09 Change 52-wk High/Low Change from 52-wk High
    Top gainers during the week (BSE-A Group)
    Essar oil 80 132 64.6% 300 / 54 -56.0%
    Jai Corp 85 129 51.5% 741 /59 -82.6%
    Hindustan Copper 118 168 41.6% 375 / 70 -55.3%
    REI Agro 45 61 35.5% 179 / 36 -66.0%
    Videocon 93 125 34.3% 409 / 82 -69.4%
    Top losers during the week (BSE-A Group)
    Educomp Solutions 2,341 2,179 -6.9% 4,150 /1331 -47.5%
    Bajaj Auto 642 613 -4.5% 0 / 0 NA
    Power Finance 145 138 -4.4% 189 / 86 -26.9%
    Divi's Labotories 954 917 -4.0% 1,608 /765 -43.0%
    GSPL 43 41 -3.6% 74 / 25 -44.7%
    Source: Equitymaster

    Among economic news, inflation (as measured by the wholesale price index) declined to 0.26% for the week ended March 28. This is as against an inflation of 0.31% recorded in the previous week. This drop is mainly on account of lower prices of food items and mineral products. However, items like imported edible oil were dearer by 6%.

    India's industrial output fell 1.2% YoY in February compared to a growth of 9.5% YoY in the same month last year. Manufacturing output, which accounts for the bulk of the weight in the overall index, declined 1.4% YoY in February, against 9.6% YoY growth in the same month last year. While mining output also fell 1.6% YoY, that for electricity increased by 0.7% YoY during the month.

    In international news, the International Energy Agency has stated that it expects the global oil demand to drop by 2.4 m barrels per day this year. The reason behind the same is lower consumption caused by the global economic slowdown. With this drop in demand, the consumption level is likely to be equal to what it was in 2004. In its report, the agency stated that it expects oil demand to increase by next year itself.

    Japan recently unveiled a stimulus package worth US$ 150 bn to turn around its economy. It may be noted that this is the largest-ever stimulus for a single extra budget and is equivalent to nearly 3% of the country's GDP. This has been proposed mainly to help the economy from further deterioration.



    Equitymaster requests your view! Post a comment on "Stocks dance to FII tunes". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)