The indices of the Indian Stock Market get share tips
toppled again for the week ending 9 August 2013 with an overall loss
of 2%, when no positive trigger has been observed throughout the
week. In the absence of any sign of improvement, rupee also fell to
touch down another lower value.
The market experienced an important
event during this week, when Raghuram Rajan was announced as the new
Governor of RBI. The news of the new Governor came in as a surprise,
which has to take care of important tasks ahead related to the Indian
economy including the improvement of the economic growth,
stabilization of the Rupee value and control of the inflation rate.
Global Effect
The equity market at global level has
influenced a downfall during the week with Nikkei from Japan taking
the strongest fall of about 5.95%. The improving streak of the US
economy also crashed due to the fear of shrinkage of QE3.0 by Fed
earlier than when it is expected for.
European markets released the
macroeconomic data showing manufacturing activity’s improvement
during the week, however, the equity market here showed concern for
liquidity conditions and ignored the macro data released. GDP for
Italian economy showed a lower shrinkage than expected, while factory
orders in Germany have also experienced an improvement during the
week.
A rise has been marked in the
manufacturing activity for the industrial production in the UK, while
the Bank of England revealed the tie up of interest rates and
unemployment index, after which interest rates will be totally
dependent on the rate of employment.
Performance of Different Sectors in
the Market
As far as indices of different sectors
are concerned, PSUs, Realty and Metal are the only sectors that have
experienced a gain during this week at the rate of 1.09%, 2.97% and
5.31% respectively. The greatest downfall was experienced by the
Capital Goods section with a drop off above 6% during the week, while
defensive sectors also experienced a collapse, when Pharma and FMCG
indices fell over 2% during the week. Auto sector experienced a
weakness of about 1.23% during the week, where numbers of TATA motors
had experienced a downfall in their profit by 24%, which remained
unstable during the complete week.
The shares of Ranbaxy showed a
surprising surge of 36% after the announcement of land allocation in
Malaysia by the company. The numbers of the company are now eyed for
a chronological improvement in future.
The trading ban on NSEL affected the
financial technology sector, while MCX shares suffered a downfall
consecutively for another week. Tata Power and BHEL also suffered
with crash of shares. Despite a little positive trading, Wockhardt
also remained in the lower belt for maximum duration of the week.
Conclusion and Future Anticipation
The PMI numbers for India’s Services
entered in at a lower value than expected, while the whole data
haven’t shown a cutback till now since 2009 indicating a pressure
on services sector also. The session termed as earnings season for
the market showed a gradual disappointment, while no positive
triggers are being expected when the closure of this season is
approaching near. So, the instability of the market is expected for
the next week also.