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from Expert Zone:

India Markets Weekahead: Time to lighten commitments as extended honeymoon almost over

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

The past week was one of the most eventful post the general elections, and the action continued till Saturday with a landmark speech by Prime Minister Narendra Modi at the U.N. General Assembly and Tamil Nadu Chief Minister Jayalalithaa Jayaram being sentenced to four years in jail in a corruption case. Markets were volatile and the Nifty closed the week at 7,968, down 2 percent despite a recovery on Friday.

The week started on a positive note but weaker European manufacturing data and concerns about growth in China led the markets to crack.  The Supreme Court’s decision to charge a penalty as well as deallocate almost all coal blocks awarded since 1993 led to another bout of selling in power, metal and banking stocks.

The deferring of decision to raise gas prices was also viewed negatively by investors as the new government was expected to be quick and decisive. As markets were sinking further below 7,900 levels, a ratings upgrade of the country by S&P came as a shot in the arm, helping the Nifty to bounce back above 7,950.  The launch of “Make in India” campaign was hailed by industry stalwarts as a game changer, boosting sagging market morale.

People walk past the Bombay Stock Exchange (BSE) building in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/FilesMaharashtra’s assembly polls in October is being viewed as an important event to judge Modi’s continuing popularity, especially following the BJP’s weak performances in recent by-polls. The Sena-BJP combine was expected to have a cakewalk due to anti-incumbency against the ruling Congress-NCP combine. But the breakup of both these coalitions could throw up unexpected results and new post-poll alliances. A weak Maharashtra government may not bode well for the industrialization story.

from India Insight:

Stock market glitches in India over the past few years

India's stock market, like its peers across the world, is no stranger to sudden trading halts due to technical glitches. On Thursday, India’s second-biggest exchange operator BSE halted trading across all its segments due to a network outage. Trading on the NSE bourse was not affected.

The three-hour outage was the longest in recent memory and follows three earlier outages in a year that has seen stocks scale fresh peaks on expectations of economic revival from a new government.

from Expert Zone:

India Markets Weekahead: Investors to remain bullish in election season

(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.

from India Insight:

Sensex loses 3.75 percent in action-packed month

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

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

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

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

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

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

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.

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