Markets
BSE See NSE See 39,131.04
234.33 (0.6%)
collapse Related Readings collapse

Markets waiting for the dust to settle

| 11/21/2011 11:42 AM Monday

A bear market is one that cannot rise even on good news, while a bull market is one that can easily shake off bad news. For now, the
former seems to hold true of the markets, where any news is perceived to be bad news. Despite the shakeups in the Euro zone, nothing seems to have worked in favour of the market sentiment over the past fortnight. Trading with a negative bias, the broader markets ended almost four% down, with the Sensex losing 690 points and the Nifty declining 228 points over the fortnight (between 2nd November and 15th November).

Index 16-Nov 2-Nov % Change
Sensex 16,775.87 17,464.85 -3.94
S&P CNX Nifty 5,030.45 5,258.45 -4.34
BSE - 100 Index 8,682.89 9,091.04 -4.49
BSE - 200 Index 2,032.73 2,132.07 -4.66
BSE - 500 Index 6,368.99 6,693.54 -4.85
NSE - CNX 100 4,902.20 5,133.85 -4.51
NSE - CNX 500 3,965.45 4,171.40 -4.94

The weakness seems to be widely spread, with almost all the broader indices having ended in the red, and this is also true of stocks of all sizes. In fact, Mid- and Small-Cap stocks have performed even worse than their larger counterparts. The BSE Mid-Cap Index ended 6.43% down, while the BSE Small-Cap Index was down by a whopping eight% over the fortnight.

FMCG is the only sector where there seems to have been some amount of optimism. The BSE FMCG Index (up 0.33%) was the only one among the sectoral indices to have ended in the positive over the fortnight. All the others ended in the red, Realty and Consumer Goods being the worst performers. The BSE Realty Index ended at the bottom of the heap, with an 11% decline, while the BSE Consumer Goods Index was down 9.27%. Banks, metals and power were among the other weak performers
over the fortnight. IT stocks seem to be holding up for some reason.

This is a trend that has been witnessed over the past couple of fortnights. The BSE IT Index ended the fortnight down by only 1.34%, followed closely by the BSE Healthcare Index, which declined 2.40%. All the others were down an average six% over the fortnight.

Institutional activity is throwing up some positive vibes. FIIs ended the fortnight with a net buying of Indian equities worth USD 378
million, while Indian mutual funds played contra to their foreign counterparts as usual, having sold net equities worth `202 cr over the fortnight.

International markets saw a relatively calmer fortnight, as can be seen at least from the end-to-end performance of the key indices. Except for the Japanese Nikkei, none of the others were in the red. The Dow Jones Industrial Average gained 2.20%, while the Shanghai Composite was up 1.02%. Europe, where most of the bad news is currently emanating from, was actually in the black.
The FTSE ended the fortnight gaining 0.61%.

What has put the markets under pressure are the Q2 numbers of India Inc. Some media reports have already dubbed it a ‘Sad September’ for corporate India. Why have the numbers been so bad? Well, the reasons were already there for all to see much before
the actual results proved the case in point – rising interest rates, a declining rupee, inflation, et al. In fact, it is increasingly becoming painful to discuss the same reasons over and over again and yet not have discussed them enough.

What lies ahead? It is better to wait and watch, and not speculate about what will happen to the markets over the next fortnight. For now, we know all that can probably go wrong with the market, don’t we? Or else...

 

Find More Articles on: DSIJ Magazine, Market Moves, Markets, Market Outlook

news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.