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from Expert Zone:

India Markets Weekahead: Investors to remain bullish in election season

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(Any opinions expressed here are those of the author and not of Thomson Reuters)

A surprise decision by the Reserve Bank of India (RBI) to keep the repo rate unchanged and a dovish statement from Ben Bernanke in his last news conference as U.S. Federal Reserve Chairman improved sentiment with the Nifty closing 106 points higher at 6,274.

Markets tottered for three days during the week amid fears the Nifty could break a crucial support zone between 6,120 and 6,140. Investors had discounted a 25 bps hike in monetary policy based on inflation numbers that were the highest in 14 months. RBI Governor Raghuram Rajan should be lauded for taking a practical stance as food inflation is expected to cool considerably in December due to improved supplies and the monsoon effect.

An increase in the repo rate would have further affected an economy that is trying to break out of a slowdown. The impact of Fed tapering was neutralized by dovish commentary. Though the rupee turned a tad weaker, the markets took positive cues for India’s exports, which would enjoy twin benefits of a weaker rupee and a stronger U.S. economy.

The drubbing in recent state elections seems to have shaken the Congress-led coalition government to act. The long-pending Lokpal Bill to fight corruption in public offices was finally passed in parliament.

from India Insight:

Sensex loses 3.75 percent in action-packed month

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The BSE Sensex lost 3.75 percent in August, its worst monthly performance since February, as worries over foreign outflows were exacerbated by the rupee that fell to record lows.

India's current account deficit and a struggling economy still worry market participants.  Data showed on Aug. 31 that June quarter GDP grew at 4.4 percent, below analysts' estimates.

from India Insight:

Markets this week: Coal India, ITC top Sensex losers

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The BSE Sensex lost 3 percent in the week ending Aug. 2, extending its losses from the previous week and marking its biggest weekly fall since mid-March.

Markets remained on the edge on uncertainty over how long the Reserve Bank of India (RBI) would continue measures to defend the rupee. The rupee fell 3.4 percent over the last five trading sessions and ended at a record closing low on Friday.

from India Insight:

Tracking Sensex: L&T top loser this week

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By Aditya Kalra and Sankalp Phartiyal

The Sensex lost 2 percent and the Nifty slipped 2.3 percent in a tough week for stocks as Indian markets remained cautious ahead of the Reserve Bank of India (RBI) policy review on July 30.

The benchmark Sensex, which ended in the red for three of five trading sessions, touched a 2-1/2 year high during the week as consumer goods shares surged.

from India Insight:

Tracking Sensex: top gainers, losers this week

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It was a good week for Indian shares as the BSE Sensex gained 1 percent to close at 20,149.85, after the index touched a near two-month high during trade on Friday. The rupee gained for the second week and ended at 59.35/36 after rising 0.3 percent.

Markets reacted negatively on Tuesday to the Reserve Bank's moves to tighten liquidity in the system in a bid to support the weak rupee. However, Prime Minister Manmohan Singh said on Friday that these steps may be temporary.

from India Insight:

Tracking Sensex: Top gainers, losers this week

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By Aditya Kalra and Ankush Arora

Indian shares started the month of July on a flattish note, with the BSE Sensex rising 0.5 percent in the week ending July 5 after climbing more than 3 percent the previous week.

However, a weak rupee continued to dampen sentiment as the unit ended the week below 60 to the dollar, adding to concerns about India’s current account deficit.

from India Insight:

Tracking Sensex: top gainers, losers in June quarter

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By Aditya Kalra and Ankush Arora

Indian shares ended the June quarter on a positive note as the Sensex and Nifty registered gains of around 3 percent during the period, data showed.

The markets managed to post gains in the quarter despite falling around 2 percent in June after the U.S. Fed said it plans to begin winding down its stimulus later this year if economic conditions are favourable.

from India Insight:

Metal stocks top underperformers in 2013; outlook mixed

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Shares of Indian metal companies are going through a rough patch in 2013 as a slowing economy at home coupled with rising input costs and weakness in Europe hurts demand.

Indian shares have had a mixed year so far, but the BSE metals index, which is a barometer of metal companies’ performance in India, has been the worst performer among sectors, data shows.

from India Insight:

Tracking Sensex: Top losers, gainers of the week

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By Ankush Arora and Aditya Kalra

Gains of 1.9 percent on Friday helped the Sensex recover some of its losses but the benchmark still ended down 1.3 percent for the week. The index ended in the red for three of five trading sessions this week.

Indian markets largely ignored Fitch’s rating outlook upgrade and Finance Minister P. Chidambaram’s pledge to do more for the economy. Ahead of Monday’s Reserve Bank of India policy review, data showed May inflation stood at 4.7 percent. However, recent weakness in the rupee and a high current account deficit are some of the factors that dampen hopes of a rate cut.

from India Insight:

In a mixed year for lenders, IndusInd Bank shines

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Rate cuts by the Reserve Bank of India, new bank licence norms, bad loan worries and money laundering accusations - Indian banks are firmly in the public eye in 2013.

Going by stock returns, lenders have had a mixed year so far. The BSE banking sub-index has gained less than 1 percent, as compared to the benchmark Sensex’s return of nearly 3 percent. Big banks such as the State Bank of India have lost 13 percent while HDFC Bank has gained around 4 percent. Some smaller players have struggled, with IDBI and Bank of Baroda falling more than 20 percent.

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