IDBI AMC Weekly Market Snapshot
(28th January, 2013 to 01st February, 2013)
The Nifty decreased by ~76 points (down 1.2%) and settled at 5998.9 and the Sensex decreased by ~322points (down 1.6%) and settled at 19781.19 at the end of the week.
According to the macro economic report released by RBI, it has lowered GDP growth forecast for FY13 to 5.5% from 5.8% estimated earlier due to weak investment demand, moderation in consumption spending and poor export performance. At the same time, baseline WPI inflation projection for March 2013 has been revised downwards from 7.5% estimated in Q2FY13 to 6.8% now. RBI expects inflation going forward to remain range-bound and expects not to fall substantially from current levels.
The RBI, in its third quarter review of monetary policy 2012-13, reduced the repo rate and CRR each by 25 bps to 7.75% and 4%, respectively. Reserve Bank of India struck a cautious note on further easing as it awaits government's plan to control the rising fiscal deficit and said that inflation continues to remain above its comfort zone.
India’s HSBC manufacturing PMI fell to 53.2 in January after rising to six month high of 54.7 in December due to moderation in new orders and power outages during the month.
On the global front, Shanghai was the highest gainer (up 5.6%) on the back of improvement of the non manufacturing Purchasing Managers’ Index which rose to 56.2 in January from 56.1 in Decemeber. Nikkei (up by 2.4%), Nasdaq (up by 0.93%) were amongst the other gainers.
The Rupee appreciated by 0.91% from Rs 53.69 to close at Rs.53.20 per USD during the week.
Gold prices were up by 0.5% to USD 1667/ounce from USD 1659/ounce during the week.
Crude prices increased by 3.1% from $113.3/bbl from $116.8/bbl during the week.
It was a mixed bag performance by the sector indices. The highest gainers were Consumer durables (up 2.2%), FMCG (up 1.7%) and Realty ( up 1.3%), while the major losers were Cap Goods (down 2.9%), Auto (down 1.7%) and Oil & Gas (down 1.7%).
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