Let It Rain Enough To Shower Money

The second round of budget session of Indian Parliament kicked off on April 25 with crash to flat note on Dalal Street. Sensex slipped to 25101 level from 25603 only to stabilise at 25688 with a gain of 0.33 per cent. The tug of war between the union government and opposition parties on issues like Agusta Westland chopper deal and Presidential rule in Uttarakhand paralyzed the Parliament proceedings and political outfits failed to rise over petty political issues and work on important Bills including GST Bill. Market did not get a single positive clue thus from the happenings in Sansad Bhavan in the national capital.

Nifty 50 meanwhile ascended by 0.24 per cent in last 15 days. On sectoral front, power followed by realty indices increased by 1.75 per cent and 1.23 per cent respectively. During last week of April and first few days of May, participation of FIIs and DIIs declined significantly due to profit booking and weak global cues. FIIs bought net equity of Rs 90.34 crore and DIIs net investment in equity market stood at Rs 690 crore.

Previous week was basket full of Q4 results, around 250 companies reported PAT growth of around 6 per cent. Heavyweights as Infosys, TCS, Emami, Hero MotoCorp, Ultra Tech, Maruti Suzuki, Adani Ports, Eicher Motor, Marico and Dabur posted good Q4 numbers. In this quarter some companies have surprised the streets on positive side and investors have been rewarded handsomely.

Quarterly results of the major banks also mentioned positive numbers but due to weak NPA valuation some of them failed to attract investors. Talking about results from the chemical sector, small cap and mid cap companies like Thirumalai Chemicals Ltd, Jayant Agro-Organics, Gee-Cee Ventures and Supreme Petrochem rewarded with handsome returns of around 30 per cent in last fortnight.

Auto sector has been showing signs of revival from slackness over the last two years. Passenger vehicle sales in India witnessed an upward move of more than 11 per cent in April 2016, driven by strong demand for utility vehicles. As per Society of Indian Automobile Manufacturer (SIAM), the UV segment posted 43 per cent jump in sales volume in April. Growth in passenger cars remained muted at 1.87 per cent due to weak rural market and restriction on new purchase of diesel vehicles in Delhi and NCR. The buoyant response for new launch and lower steel prices helped OEMs in posting good results.

On global front, the Fed kept rates unchanged citing slower growth in the US economy and they are scheduled to review the same in June. Bank Of Japan kept rates unchanged not providing fodder for traders. Signs of stability in China helped soothe investor anxiety. Dragons Forex reserves grew in second straight month plus exports grew by 4.1 per cent, imports declined by 11 per cent on yearly basis. In last fifteen days, Dow Jones, S&P 500 remained flat whereas Nikkei, DAX and Hang Seng indices plunged by 2.70 per cent, 3.30 per cent and 5.76 per cent respectively.

Precious metal gold is trading in the levels of 29200-30700 and silver has been moving in the range of 39000-43000. The rupee depreciated 4 paise to 66.58 against dollar in the previous session due to dollar demand from banks and importers.

CPI of China, Bank of England rate decision, Bank of England inflation report, GDP of Germany and Euro Zone can trigger the market which are scheduled in the first half of May. Bank of America Merril Lynch has added India to be the safest bet among emerging markets. Second half of the year could be better in terms of growth and earnings if rain gods go as per the prediction of IMD. The honey comb is being filled by companies and we will wait till the honey can be squeezed from the comb.