Sunday, 20 October 2013

Weekly Market Update - 14 Oct to 18 Oct 2013

The week started with a positive note and kept up the positive bias throughout the week. Individual stocks with their earnings reports too led the mood somewhat and the week closed on a high note setting big expectations for the next week.
The highlights of the week are :

  • CPI rises to 9.84% in September. WPI raises to 6.4%.
  • On a good note, CAD estimate lowered to 2.5% of GDP for FY 2013-14.
  • Global markets breathe a sigh of relief as US senate raises the debt-ceiling.

The positive mood from the earlier week continued its spill-over effect into this week too. The good mood was supported by news the US senate may strike a last minute deal to raise the debt-ceiling and true to the expectations, later in the week the US president signed the bill raising the debt-limit. The global markets reacted with a huge relief and the Indian markets too rallied in celebration. The Sensex ended the week at a 3yr high.

In other developments, Reliance Industries reported a quarterly turnover of 1Lac Cr. A first for an Indian company. The week also saw earnings reported by some well known companies like L&T and UltraTech both of which reported dismal numbers. Tech companies ruled the markets with their rich valuations backed by results which met market expectations.

The inflation numbers do not seem to be letting down any time sooner. For the month of September, CPI was reported at 9.84% and WPI was at 6.4% both of them higher that the earlier months. The persisting high inflation has nullified the prospects of any rate cuts by RBI and there may in fact be a rate hike in the next monetary policy to curb the inflation.

Boosted by the MoM export data and reducing import bill, the planning commission has revised the CAD estimate for the FY 2013-14 to 2.5% of GDP from an earlier 3.7% which is a huge sentiment booster for the govt. as well as the economy as a whole.

The next week may as well be a mixed bag with positive bias. A lot will again depend on earnings reports by companies and individual stock performances.