 "Fed stance lifts Sensex to 7-week high; commodities surge")
Benchmark share indices ended the last day of the trading week on a firm footing after minutes of the Federal Reserve's latest meeting indicated that the Fed is in no hurry to raise interest rates soon. The rally was led by commodities while Infosys edged higher ahead of its September quarter earnings due on Monday.
The Sensex ended the session at 27,080, 234 points or 0.87% up while the Nifty settled down at 8,190, up by 60 points or 0.74%
The broader markets showed a divergent trend with BSE Midcap down by 0.1% and Smallcap ended up by 0.2%. The health of the market was marginally positive with 1,472 advances while 1,304 declines
Foreign portfolio investors were net sellers in equities worth Rs 48.89 crore on Thursday, as per provisional stock exchange data.
RUPEE
The rupee strengthened by 31 paise to 64.75 against the dollar in early trade today on fresh selling of the US currency by exporters and banks amid firm domestic equity markets.
CRUDE OIL
Brent crude oil futures is set to rise over 11% for the week. The crude oil got a push when forecaster PIRA Energy Group predicted crude prices would rise to $70 per barrel by the end of 2016.
Brent for November also advanced 0.45% to $53.29 a barrel in late-morning trade on the New York Mercantile Exchange.
MARKET OUTLOOK
According to Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services, "The Market has moved higher tracking the global markets where risk appetite has increased on easing global risks. Commodity prices continue to rise and concerns over an immediate US rate hike have receded. The Fed’s meeting minutes released yesterday indicates a dovish stance, which has increased optimism on the possibility of a delay in rate hike."
He added, "While on the domestic front, the market would be looking at the IIP and September CPI data to be released on Monday and Q2 results which will start next week. The consensus expects inflation to move higher from August and IIP to remain flat."
GLOBAL MARKETS
The world stocks rose higher on Friday after the Fed posted its latest meeting minutes stating they are in no rush to raise the interest rates. Asian equities finished the day on a higher note following the surge in the oil prices as well as on Fed relief.
Japan’s Nikkei jumped 1.6% Hang Seng and Shanghai Composite ended between 0.5-1.3%
The European markets are in tandem. The major equities are up between 1-1.2%
SECTORS & STOCKS
Out of 12 sectors, 9 sectors finished on a robust note led by BSE IT index, which ended 1.5% up followed by BSE Metal index, 1% up. BSE Consumer Durables index however, lost 0.2%
Vedanta Resources said it has reduced capital and operating expenditures in the July-September quarter as it is trying to tackle volatile market conditions as well as subdued metal prices globally. Also, the mining company is planning to enter the solar segment in India by bidding for some 500 MW of government projects. The stock finished with 12.6% and was the highest gainer on the Sensex
Hindalco ended with 1.6%. Alcoa's third-quarter revenue slipped to $5.6 billion, a sharp decline of 21% mainly due to closures of non-competitive facilities. The impact of Alcoa's earnings highlights revenue visibility for Hindalco's Novelis unit.
Tata Steel, which will commission a 3 million tonne steel plant in Kalinganagar by December, plans to scale up its operations gradually. The stock soared 4.2%
ICICI Bank ended with 2.5% gains.
The RBI eased risk weights on loans of up to Rs 75 lakh, provided the borrower brings in a bigger contribution towards financing the property.
L&T ended up nearly 1%. The company's ship building arm plans to tie-up with Adani Ports and Special Economic Zone (APSEZ).
From the oil sector, the oil marketing companies slipped on the rising crude prices. BPCL, IOC, OIL, HPCL all slipped between 0.2-2.7% each. ONGC soared 2.1%
RIL slipped 0.3%. Some natural gas from the fields of ONGC in the Bay of Bengal may have flown out through the adjoining, connected KG-D6 fields of RIL quoting US consultant DeGolyer and MacNaughton’s (D&M) preliminary observations.
Sun Pharmaceutical Industries finished 1% lower. The pharma major has withdrawn its appeal in the lawsuit filed by erstwhile Ranbaxy Laboratories in November 2014 in a US District Court against US Food and Drug Administration (FDA).
The Sensex ended the session at 27,080, 234 points or 0.87% up while the Nifty settled down at 8,190, up by 60 points or 0.74%
The broader markets showed a divergent trend with BSE Midcap down by 0.1% and Smallcap ended up by 0.2%. The health of the market was marginally positive with 1,472 advances while 1,304 declines
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Further, a Reuters poll showed that the CPI for the month of September is likely to have risen on account of higher food prices, but maintained that the retail inflation will remain comfortably below the Reserve Bank of India's target thus allowing more elbow room for a rate-cut
Foreign portfolio investors were net sellers in equities worth Rs 48.89 crore on Thursday, as per provisional stock exchange data.
RUPEE
The rupee strengthened by 31 paise to 64.75 against the dollar in early trade today on fresh selling of the US currency by exporters and banks amid firm domestic equity markets.
CRUDE OIL
Brent crude oil futures is set to rise over 11% for the week. The crude oil got a push when forecaster PIRA Energy Group predicted crude prices would rise to $70 per barrel by the end of 2016.
Brent for November also advanced 0.45% to $53.29 a barrel in late-morning trade on the New York Mercantile Exchange.
MARKET OUTLOOK
According to Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services, "The Market has moved higher tracking the global markets where risk appetite has increased on easing global risks. Commodity prices continue to rise and concerns over an immediate US rate hike have receded. The Fed’s meeting minutes released yesterday indicates a dovish stance, which has increased optimism on the possibility of a delay in rate hike."
He added, "While on the domestic front, the market would be looking at the IIP and September CPI data to be released on Monday and Q2 results which will start next week. The consensus expects inflation to move higher from August and IIP to remain flat."
GLOBAL MARKETS
The world stocks rose higher on Friday after the Fed posted its latest meeting minutes stating they are in no rush to raise the interest rates. Asian equities finished the day on a higher note following the surge in the oil prices as well as on Fed relief.
Japan’s Nikkei jumped 1.6% Hang Seng and Shanghai Composite ended between 0.5-1.3%
The European markets are in tandem. The major equities are up between 1-1.2%
SECTORS & STOCKS
Out of 12 sectors, 9 sectors finished on a robust note led by BSE IT index, which ended 1.5% up followed by BSE Metal index, 1% up. BSE Consumer Durables index however, lost 0.2%
Vedanta Resources said it has reduced capital and operating expenditures in the July-September quarter as it is trying to tackle volatile market conditions as well as subdued metal prices globally. Also, the mining company is planning to enter the solar segment in India by bidding for some 500 MW of government projects. The stock finished with 12.6% and was the highest gainer on the Sensex
Hindalco ended with 1.6%. Alcoa's third-quarter revenue slipped to $5.6 billion, a sharp decline of 21% mainly due to closures of non-competitive facilities. The impact of Alcoa's earnings highlights revenue visibility for Hindalco's Novelis unit.
Tata Steel, which will commission a 3 million tonne steel plant in Kalinganagar by December, plans to scale up its operations gradually. The stock soared 4.2%
ICICI Bank ended with 2.5% gains.
The RBI eased risk weights on loans of up to Rs 75 lakh, provided the borrower brings in a bigger contribution towards financing the property.
L&T ended up nearly 1%. The company's ship building arm plans to tie-up with Adani Ports and Special Economic Zone (APSEZ).
From the oil sector, the oil marketing companies slipped on the rising crude prices. BPCL, IOC, OIL, HPCL all slipped between 0.2-2.7% each. ONGC soared 2.1%
RIL slipped 0.3%. Some natural gas from the fields of ONGC in the Bay of Bengal may have flown out through the adjoining, connected KG-D6 fields of RIL quoting US consultant DeGolyer and MacNaughton’s (D&M) preliminary observations.
Sun Pharmaceutical Industries finished 1% lower. The pharma major has withdrawn its appeal in the lawsuit filed by erstwhile Ranbaxy Laboratories in November 2014 in a US District Court against US Food and Drug Administration (FDA).