Finblab Research: Indian Stock Market Weekly review

Weekly Review: 8 Jan 2018 to 12 Jan 2018

8-JAN-2018:

After a steady start in the 1st week of 2018 (Sensex up by 96 points and Nifty up by 28 points on a weekly basis) the market was in a bullish mode on the first day of the 2nd week of 2018 – thanks to positive global cues and post GDP estimates and credit growth data. The 30-share BSE Sensex rallied 199 points to 34,353 while the 50-share NSE Nifty closed above 10,600-mark for the first time in the history, gaining 64.70 points at 10,623.60.

9-JAN-2018:

The bullish mood of the market continued on Tuesday as well. Though benchmark indices remain range bound during the session finally managed to close at a fresh new high. The 30-share BSE Sensex was up 90 points at 34,443 while the 50-share NSE Nifty rose 13.40 points to 10,637, thanks to positive global cues.

10-JAN-2018:

• After two days of rally, the Indian stock markets opened weak on Wednesday. The markets witnessed a sell-off in the first hour of trade due to a continued rally in crude oil prices and if there is an implementation of long-term capital gain taxes in Union Budget. The benchmark indices recovered in the last hour of trade thanks to the sharp rally in IT stocks. The BSE Sensex closed down 10 points at 34,433 while the NSE Nifty fell for the first time in last seven sessions, ending down 5 points at 10,632.
• Today the Cabinet has approved key changes in India’s foreign direct investment (FDI) policy by easing investment norms in the sectors including single-brand retail, construction, and aviation. The cabinet today approved 100% FDI in single-brand retail via automatic route, 100% FDI in construction under automatic route and investment up to 49% under approval route in Air India and allowed FIIs/FPIs to invest in power exchanges via the primary market.

10-JAN-2018:

• The Indian stock markets closed higher on Thursday after consolidation, with the Nifty holding 10,650 for the first time. The BSE Sensex was up 70 points at 34,503 and the NSE Nifty gained 19 points at 10,651.
• Indian IT major Tata Consultancy Services (TCS) has declared its Q3 FY18 results post market hours, wherein the company’s Profit during the quarter increased to INR 6,531 Cr from INR 6,446 Cr in previous quarter, while Revenue in rupee terms grew by 1.2% to INR 30,904 Cr and dollar revenue rose 1% to USD 4,787 million compared to September quarter.

10-JAN-2018:

• The Friday’s trading session was a volatile one. The BSE Sensex falls more than 150 points when the areas of concern flagged by the 4 senior judges of the Supreme Court show that there is some kind of a connection between some people in the ruling government and some judges. The markets, however, gets stabilized and closed on a positive note. The BSE Sensex was up by 89 points while the NSE Nifty closed up by 30 points.
• India’s second-largest software services provider Infosys has declared its Q3 FY18 results post market hours, the Company has reported profit growth of 37.7% at INR 5,129 Cr for the quarter against INR 3,726 Cr reported in the previous quarter due to lower tax expenses. The IT firm has maintained its full-year constant currency revenue growth guidance at 5.5% to 6.5% and EBIT margin at 23% to 25%.

Snapshot A Week Gone By

Future Outlook:

The second week of 2018 also ended on a positive note. Though the mood the market is positive, the momentum clearly suggests that the market may be pricing in likely recovery in corporate earnings for December quarter and the Union Budget, which will be presented on 1st February 2018. It is also very interesting to how the market will react on Monday to the two of the most important data came on the Friday evening; where one is positive and one is negative.

• India’s industrial output (IIP) hit a 25-month in November, jumped to 8.4% YOY against 2.2% in October 2017, led by robust growth in manufacturing, as well as inventory rebuilding after the festive season.
• The CPI Inflation, a measure of retail inflation, rose to 5.21% YOY in December 2017, 17 months high, due to rising food inflation and fuel inflation.

Link – Weekly Review

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