IDBI AMC Weekly Market Snapshot (7th Oct, 2011 to 14th Oct 2011)
The major equity indices across the world displayed strength during the week. The improved performance was mostly on the back of rising hopes for meaningful progress on the EU crisis. The Indian equity markets performed in line with its global peers, with the Nifty and the Sensex up by ~244.2 pts (~5.0%) and ~850.1 pts (~-5.2%), to close at 5132 and 17082 respectively. On the domestic front, inflation remains at elevated levels. The provisional WPI figure for September stood at 9.72% yoy (9.78% in August). Continuing with the current trend, the inflation data for the preceding months were revised updwards, thereby increasing the probability of another round of rate hikes.
The Indian exports for the month of September remained robust, increasing by 36.3% yoy. This implied a cumulative rise of 52% yoy (US$160bn) for 1HFY12. The export growth was mainly driven by engineering goods, petroleum products and jewellery. India’s imports continued to expand, growing by 17.2% yoy in September and 32.4% yoy in 1H FY12.
(Source: Bloomberg)
The global markets gave the benefit of doubt to the Euro leaders on reaching a pragmatic solution for the current debt crisis, as the leaders have promised to finalize a solution by the first week of Novemeber 2011. In the preceding week, the rating agency Fitch warned of rating downgrade for world’s largest banks.
(Source: Bloomberg)
(Source: Bloomberg)
Gold prices gained by 2.6% from 1637 USD/ ounce to USD 1680/ ounce. With the improvement in FII inflows, the INR appreciated by ~0.3% wow w.r.t. USD reaching 49.02 INR per USD from 48.98 during the previous week. Crude oil prices strengthened on the back of positive global news flow. Brent crude increased by ~7.8% from 104 USD/barrel to 112.23 USD/barrel during the week. The major gainers on the Nifty during the week were Tata Motors (up ~13.1%), Bajaj Auto (up ~8.7%), Jindal Steel and Power (up ~8.6%) and Bharti Airtel (up~8.1%). Some of the major losing stocks for the week included Maruti Suzuki India Ltd( down ~7.7%) and Ranbaxy (down ~2.8%). With respect to sector specific indices, the BSE IT index gained by ~ 8.7%, with Infosys reporting a strong set of quarterly results.
(Source: Bloomberg)
(Source: Bloomberg)
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