 "Investors get cautious as May 16 nears")
Market remained subdued throughout the week, with the benchmark index Sensex falling 284 points or 1.25 per cent to 22,404 and the 50-stock NSE Nifty dropping 88 points or 1.3 per cent to 6,695 levels. It was a truncated week that saw profit-booking as investors grew cautious ahead of May 16 — the day the election results will be announced. The stock market was shut on Thursday on account of May Day.
India Meteorological Department’s (IMD) announcement that the country is likely to get below-normal monsoon this year on account of the global weather phenomenon El-Nino also weighed on the sentiment. Subdued April manufacturing data and escalation of conflict in Ukraine also played truant.
Despite this, investors remained confident in broader markets, which outperformed the benchmark indices during the week. BSE Mid-Cap index slipped 0.22 per cent to 7,357.46 and BSE Small-Cap index fell 64.53 points or 0.85 per cent to 7,532.81.
Among the sectoral indices, the BSE Capital Goods, Metal and Realty indices saw immense selling pressure, all plunging between five and six per cent. However, the BSE Healthcare and IT indices saw gains and were up one to two per cent.
In economy-related cues, manufacturing activity remained stagnant in the first month of the current financial year, according to HSBC purchasing managers' index (PMI). PMI stayed put at 51.3 points in April, same as March. A reading above 50 denotes expansion and the one below implies contraction.
Gold demand on Akshaya Tritiya, a ritualised day for buying the metal in India, was subdued on Friday, as economic uncertainty forced people to put off purchases.
The global markets were mixed. US stocks ended near record highs and Treasury bond yields near multi-month lows. Asian shares were quiet and the dollar gained marginally against the yen on Friday.
Top losersIndia Meteorological Department’s (IMD) announcement that the country is likely to get below-normal monsoon this year on account of the global weather phenomenon El-Nino also weighed on the sentiment. Subdued April manufacturing data and escalation of conflict in Ukraine also played truant.
Despite this, investors remained confident in broader markets, which outperformed the benchmark indices during the week. BSE Mid-Cap index slipped 0.22 per cent to 7,357.46 and BSE Small-Cap index fell 64.53 points or 0.85 per cent to 7,532.81.
Among the sectoral indices, the BSE Capital Goods, Metal and Realty indices saw immense selling pressure, all plunging between five and six per cent. However, the BSE Healthcare and IT indices saw gains and were up one to two per cent.
In economy-related cues, manufacturing activity remained stagnant in the first month of the current financial year, according to HSBC purchasing managers' index (PMI). PMI stayed put at 51.3 points in April, same as March. A reading above 50 denotes expansion and the one below implies contraction.
Gold demand on Akshaya Tritiya, a ritualised day for buying the metal in India, was subdued on Friday, as economic uncertainty forced people to put off purchases.
The global markets were mixed. US stocks ended near record highs and Treasury bond yields near multi-month lows. Asian shares were quiet and the dollar gained marginally against the yen on Friday.
Among the 30 Sensex shares, 23 declined while remaining shares rose.
Tata Steel was biggest Sensex loser last week. The stock slipped over eight per cent to Rs 391. Sesa Sterlite dropped 6.57 per cent to Rs 180.50. The company's consolidated net profit fell 31.34 per cent to Rs 1,222 crore. Hindalco Industries tumbled 7.81 per cent to Rs 132.25.
Auto sales numbers for April suggested the economy has not picked up yet and demand still remains passive. Mahindra & Mahindra fell 1.28 per cent to Rs 1,056.55. The company reported weak sales in April. M&M's auto sales declined 12 per cent to 36,274 units in April this year over April 2013.
Bajaj Auto dipped 4.6 per cent to Rs 1,904.65. The total sales fell four per cent to 331,000 units in April over the same month last year. Maruti Suzuki India lost 3.61 per cent to Rs 1,885.50. The company's total vehicle sales declined 11.4 per cent to 86,196 units in April 2014 over April 2013.
Tata Motors declined 2.15 per cent to Rs 414.70. The company's total sales (including exports) of Tata commercial and passenger vehicles in April 2014 were 33,892 vehicles, a decline of 34 per cent over 51,160 vehicles sold in April 2013. Bharti Airtel fell 4.50 per cent to Rs 325.70. The company's net profit jumped 89.07 per cent to Rs 961.60 crore on 13.62 per cent increase in total income to Rs 22,260.50 crore in the fourth quarter.
Week ahead
The next batch of January-March quarterly earnings will continue to influence the near-term trend. Among major companies announcing quarterly results in the coming week are HDFC, Lupin and Ranbaxy Labs. A major trigger for the stock market is the expectation of a stable government after the ongoing Lok Sabha elections which will conclude on May 12. The results will be declared on May 16.
Foreign fund flows, global cues and rupee movement against the US dollar will also hold significance for the domestic equities.