X

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.
13th successive weekly gain - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jun 6, 2009

    13th successive weekly gain

    The Indian markets put up another positive performance during the week ending June 5 2009. It may be noted that the Indian markets have had a positive run for thirteen weeks now. The country's benchmark index, the BSE-Sensex ended higher by 3% over the previous week. Markets across the world put up a good performance as well. In Asia, the pack was led by China (up 5%), Singapore (up 3%), Hong Kong (up 3%) and Japan (up 3%). As for other global markets, the pack was led by US (up 3%), followed by Germany (up 3%), France (up 2%), UK (up 1%) and Germany (up 0.3%).

    Coming to the performance of sectoral indices in India, stocks forming part of the consumer durables, capital goods and metal sectors led the pack of gainers. The BSE-Capital Goods and BSE-Metal indices recorded gains of about 8% each. On the other hand, stocks forming part of the oil and gas and banking spaces recorded weekly losses. The BSE-Oil and Gas and BSE-Bankex indices recorded losses of about 1% each. Further, the BSE Small cap Index put up another strong performance during the week, recording gains of nearly 8%, while BSE Midcap Index gained by nearly 7%.

    Data stating the institutional activity shows that there was strong buying activity recorded by both FIIs (foreign institutional investors) and domestic mutual funds during the week gone by. However, the domestic mutual funds seemed to be on a shopping spree as they invested nearly Rs 47 bn during the week barring Friday (data for Friday was not available at the time of writing), while FIIs invested nearly Rs 20 bn.

    Coming to the performance of India Inc., some of the heavyweights which announced their results during the week were Nalco and Sun Pharma. Nalco recorded a net sales growth of around 1.9% YoY led by higher sales of alumina and electricity. However, its operating profits declined by 22% YoY mainly on account of higher power & fuel costs and staff expenses during the fiscal. On the bottomline front, the numbers were lower by 22% YoY. Bottomline for the fourth quarter plunged 81.4% YoY on the back of a 6.2% fall in topline. As for Sun Pharma, it recorded a net sales growth of 27% YoY during the fiscal led by its domestic formulations and export bulk businesses. Its operating margins contracted by 2.6% YoY to 43.6% on account of rise in staff costs and other expenditure (as percentage of sales). Net profits for the year grew by 22% YoY

    Being the first week of June, auto sales numbers for the month of May 2009 were released during the week. First for the two-wheeler segment - Hero Honda witnessed another strong month wherein it recorded a 23% YoY increase in volumes as compared to last year. On the other hand, its peer group company TVS Motors announced a 5% YoY rise in vehicle sales during the month. This rise in volumes was aided by higher domestic motorcycle sales and moped sales. Bajaj Auto reported an 8% YoY drop in overall motorcycle volumes as compared to May 2008. In fact Bajaj Auto's exports, which grew by nearly 25% YoY for FY09, witnessed a 3% YoY drop in volumes during the month of May. As for the four-wheeler segment, Maruti Suzuki announced a 16% YoY growth in volumes during the month of May 2009. This was largely aided by higher export sales, which grew by 87% YoY, while its domestic sales grew by 10% YoY.

    Source: Yahoo Finance Source: Yahoo Finance

    Source: BSE Source: BSE

    Movers and shakers during the week
    Company 29-May-09 5-Jun-09 Change 52-wk High/Low Change from 52-wk High
    Top gainers during the week (BSE-A Group)
    Gujarat NRE Coke 43 60 39.4% 117 / 17 -49.1%
    Aban Offshore 905 1,241 37.1% 3,814 / 224 -67.5%
    Jaiprakash Hydro 70 96 37.1% 93 / 23 3.4%
    Tech Mahindra 474 637 34.4% 859 / 204 -25.9%
    Suzlon 98 131 34.1% 275 / 33 -52.4%
    Top losers during the week (BSE-A Group)
    Indiabulls Fin. Serv. 217 194 -10.6% 370 / 78 -47.7%
    NMDC 449 418 -7.0% 463 / 115 -9.8%
    Indiabulls Real Est. 246 232 -6.0% 425 / 82 -45.5%
    Axis Bank 783 738 -5.9% 821 / 279 -10.2%
    Sesa Goa 166 157 -5.3% 193 / 60 -18.5%
    Source: Equitymaster

    Inflation (as measured by the WPI) declined to 0.48% for the week ended May 23. During the previous week, the number stood at 0.61%. The fall in the numbers is in spite of prices of food items such as fruits, tea, pulses, amongst others, increasing on a week on week basis. It may be noted that this is the twelfth consecutive week when inflation stood below 1%. The inflation figure stood at 8.9% during the corresponding week a year ago.

    As for economic news, improved production levels have raised India's infrastructure sector output by 4.3% YoY for the month of April as compared to the same month last year. Growth in production levels in core sectors such as cement, finished steel, coal and electricity, was 2.7% in the same month last year and 5.9% in the year before. However, crude oil production remained in the negative as it fell by 3.1% YoY.

    Export numbers for the month of April 2009 were announced during the week as well. Exports fell by nearly one-third as compared to the same month last year. It may be noted that exports have now fallen for nearly 7 months in a row. During the month of April 2009, the figure stood at US$ 10.7 bn as compared to US$ 16.1 bn last year. During FY09, exports grew by a mere 3.4% to almost US$ 169 bn. On the other hand, the slowdown in domestic markets has also lowered imports by nearly 36% YoY during the same period. Imports on the other hand have dropped mainly on account of a 58% YoY reduction in oil import.

    As for international news, the US government reported the unemployment numbers for the month of May 2009 yesterday. During the month, employers cut nearly 345,000 jobs from their payrolls. The US markets yesterday welcomed this piece of news as expectations floated around levels of 520,000 job losses. During the earlier month, the figure stood at 504,000 (revised). However, according to a separate survey, the unemployment rate rose to 9.4%, a 26-year high, from 8.9% in April.

     

     

    Equitymaster requests your view! Post a comment on "13th successive weekly gain". 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.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working (Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    The Key Factor Pushing Gold Up These Days (Outside View)

    Aug 21, 2017

    PersonalFN explains the chief factor pushing gold prices up of late.

    How Unique Are the Companies You Invest In? (The 5 Minute Wrapup)

    Aug 21, 2017

    One of the hallmarks of successful investing is to look out for companies that have a unique and enduring moat.

    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.

    More Views on News

    Most Popular

    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.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    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.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    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

    S&P BSE SENSEX


    Aug 21, 2017 (Close)

    MARKET STATS