Indian equities markets saw a volatile trade session in the truncated week ended Nov 7, with the main index remaining flat with a marginal gain of 2.8 points or 0.01 percent."Current account deficit and fiscal deficit are turning more positive and inflation is also subsiding very fast. However, credit off take, IIP and investment cycle are still showing weakness," said Rajesh Iyer, head of investment advisory services at Kotak Wealth Management."There could be some downgrade of FY15 GDP growth estimates but FY16 growth number looks promising. Globally commodity prices have corrected sharply and are expected to remain weak due to the strong Dollar."On Friday financial ratings firm India Ratings and Research Friday downgraded its gross domestic product (GDP) growth forecast to 5.6 percent from 5.7 percent due to expected low rise in industrial activity.
"Although the macro-economic environment has improved significantly since mid-2013, we believe that a non-inflationary and sustained economic growth of seven percent or above, over the medium term, is not possible without continued economic reforms and policy thrust," the ratings firm was quoted in a statement.The benchmark Sensex was down by 0.01 percent in the week ended Nov 7 from its previous weekly close on Oct 31. The index closed at 27,868.63 points, while it had ended trade at 27,865.83 points points on Oct 31.On Monday the benchmark index ended flat-- marginally down by 5.45 points or 0.02 percent - after touching a record high of 27,969.82 points in the early morning trade session.
November 5th saw the Sensex touching a high of 28,010 points in the intra-trade session, surpassing the previous high of 27,969.82 points hit on Monday.The index closed the day's trade up 55 points or 0.20 percent at 27,915.88 points after coming down from the psychological barrier of 28,000-mark.The Indian markets were closed Tuesday on account of Muharram and will be shut again on Nov 6 (Thursday) on Guru Nanak Jayanti (birth anniversary). According to market analysts further reforms by the government will lead the bursar into a bullish spell over the medium term.“Markets consolidated post the recent rally in the markets, which has come about on the back of renewed optimism on fiscal reforms, sharp correction in crude prices, improved growth in US, liquidity easing by Japan and diminished possibilities of an immediate increase in US interest rates," said Dipen Shah, head - private client group research, Kotak Securities."In the near term, focus will consistently remain on further reform initiatives. Winter session of the parliament will be closely watched for GST, land reforms."
ZyFin Advisors' chief executive Devendra Nevgi told IANS that with all the triggers on which the market can react being positive, the earnings need to catch up for the markets to remain on the high growth trajectory."There are healthy global cues like reduction in crude prices, Japanese central bank's decision to print in more money and the pick-up in global sentiments," Nevgi said.International and domestic markets remained in the positive in the last one week mainly due to steps taken by central banks around the world. Foreign investors went on a buying spree by stocking-up shares worth $718.51 million. For the week ended Nov 7, the FPIs massively bought stocks worth Rs.4,411.93 crore or $718.51 million, according to data with the National Securities Depository Limited (NSDL)."Equity valuations will remain at elevated levels because of the strong flows from both FIIs and domestic investors.
The superior returns generated by equities over other asset class will also lead to higher flows in equities in future," Iyer said.For the week ended Nov 7, the FPIs had massively bought stocks worth Rs.1,046.42 crore or $170.46 million.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI)to create a new investor category called FPIs.The major Sensex gainers on Friday were: DrReddy, up 4.51 percent at Rs.3,400; Sun Pharma, up 2.53 percent at Rs.891.65; Axis Bank, up 2.44 percent at Rs.468.85, Hindustan Unilever, up 1.84 percent at Rs.759.25 and ONGC, up 1.44 percent at Rs.409.25.Major Sensex losers were BHEL, down 3.21 percent at Rs.249.10, Gail, down 2.46 percent at Rs.485, Sesa Sterlite, down 2.09 percent at Rs.246.15, Hero MotoCorp, down 1.99 percent at Rs.2,898.50 and HDFC Bank, down 1.51 percent at Rs.899.