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from Expert Zone:

India Market Weekahead: Time to take some profits off the table

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

A rally of hope tempered by caution pushed the Nifty 1.2 percent up to 6,776 for the week. Investors believe the worst is over and a new government would be the catalyst for a sustained economic upturn. In election season, hope for a better tomorrow helps the market ignore ground realities.

A record turnout in the ongoing general election is being seen as an anti-incumbency vote. As the market continues moving up, investor hopes for a stable government get priced in, leaving hardly any room for a disappointment. On the other hand, fence sitters who got left out of the rally will join the fray, adding to the momentum already built by investors.

Although we have not seen all-round euphoria, it is distinctly visible in certain pockets. Some Gujarat-based groups have seen a stupendous increase in market capitalization.

Adani Group stocks have rallied between 35 percent and 120 percent in about two months. Gujarat Gas jumped about 62 percent in a month, with most of the gains accruing in the last week. A long list of stocks -- such as Arvind, Gujarat Mineral Development Corporation, Gujarat Pipavav Port, Pipavav Defence, Gujarat Alkalies, Torrent Power -- have climbed on investor expectations.

from India Insight:

Markets this quarter: Sensex gains 5.7 percent, L&T surges 19 percent

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By Aditya Kalra and Sankalp Phartiyal

Indian shares posted record highs in March as strong foreign buying sent blue-chip stocks such as Larsen & Toubro higher and boosted overall investor sentiment ahead of a general election.

Provisional data showed foreign investors bought shares worth more than $3 billion in March, pushing the BSE Sensex to a life high of 22,467.21 points on the last trading day of the quarter. While the index rose 6 percent during the month, it rose 5.7 percent in the Jan-March period.

from Expert Zone:

India Markets Weekahead: ‎Ride the election rally but skim the profits

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

The market began the week on a high note after an extended weekend but could not sustain the rally due to profit booking. The Nifty was at a high of 6570 on Tuesday but the rest of the trading days remained lackluster and it ended the week with a marginal loss - at 6495 after the extended trading session on Saturday.

Although the week was marked with heightened political activity as candidates for the general election were announced, the U.S Federal Reserve had a sobering effect on the markets. The Fed decision to continue with further tapering of $10 billion and focus on interest rates, which should start rising sooner than expected, saw corrections in most markets as the dollar strengthened.

from India Insight:

Markets this week: M&M, GAIL top Sensex losers

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By Sankalp Phartiyal and Ankush Arora

India’s benchmark indexes ended lower this week after scaling fresh peaks on Tuesday. The Sensex ended the week down 0.26 percent in its second consecutive week of falls. Indian markets were shut on Monday for a public holiday.

While strong buying by foreign investors bolstered blue chips, profit-booking and worries U.S. interest rates would rise sooner than expected kept shares under pressure.

from Expert Zone:

India Markets Weekahead: Markets move into pre-election rally

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

A spectacular rally in the last few days has put the market in a pre-election mode, buoyant with hopes of a stable and reform-oriented government. Led by institutional buying and the resultant short squeeze, the markets rallied more than 3 percent in the last two trading sessions - closing the week at 6526, a record high for Nifty. The markets seemed to have moved into a new territory with metals, realty, banking, capital goods, infrastructure and energy sectors participating in the rally.

 Generally, the data points for a pre-election rally are the developments on political activities and opinion polls. The economic data takes a backseat in this “rally of hope” and markets take a keen interest in electoral analysis.

from Expert Zone:

India Markets Weekahead: Time to size up portfolio

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

After a scare earlier in the week, the markets showed resilience at lower levels and bounced back, showing the confidence of participants. Though Nifty closed 26 points lower for the week at 6063, sentiment was much better than the previous week.

from India Insight:

Markets this week: BHEL, TCS top Sensex losers

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By Sankalp Phartiyal and Ankush Arora

The BSE Sensex ended down 0.7 percent in what was a slow week for Indian shares. The week began with the benchmark index sliding 1.5 percent on Monday as foreign institutional investors (FIIs) continued to sell as part of a slump in emerging markets.

Investor sentiment remained subdued despite a survey on Monday showing that Indian factories started 2014 on a high note, with manufacturing activity growing at its fastest pace in nearly a year as domestic and overseas orders increased.

from India Insight:

Markets this week: Sensex up marginally, Axis Bank gains 4.7 percent

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After registering record closing highs, the BSE Sensex ended with small weekly gains as the index fell sharply on Friday after the RBI governor’s strong comments on inflation dented sentiment.

Raghuram Rajan called inflation a "destructive disease" on Thursday. Earlier in the week, a panel recommended that the RBI should make managing inflation its main policy objective and set monetary policy by committee.

from India Insight:

Markets this week: Sensex up 1.5 percent; BHEL, Infosys jump 5 percent

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By Ankush Arora and Aditya Kalra

The BSE Sensex gained 1.5 percent this week, its first weekly gain in 2014, as easing headline inflation data raised hopes the Reserve Bank of India would keep interest rates unchanged at its Jan. 28 meet.

Headline inflation eased to a five-month low of 6.16 percent in December on lower prices of vegetables. This was the slowest pace of growth since July 2013 and below economists’ expectations of 7 percent.

from India Insight:

Equity funds underperform Sensex for first time since 2008

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India’s diversified equity mutual funds rose in 2013 but underperformed the broader markets for the first time in five years, as returns were dampened by the losses in the mid- and small-cap shares as well as financial companies.

These funds gained 4.8 percent on average in 2013, according to data from fund tracker Lipper, delivering lesser annual returns than the benchmark BSE Sensex after 2008.  The Sensex touched life highs in 2013 and ended 9 percent higher, boosted by foreign inflows of more than $20 billion.

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