Markets Hip Hop Over Global Issues

It seems that Indian capital markets are replicating the positive sentiments that are being witnessed by the global markets. This can be substantiated by the fact when we saw the Sensex witness sell off of 406 points on an intraday basis on renewed talks of tapering by the US Federal Reserve. On the very next day the Sensex gained 387 points on back of the historical Iran-US nuclear deal. 

There is not a single domestic reason that surely points toward any kind of big move in the markets. Markets are doing hip-hop for last three to four trading sessions and it is literally beyond anyone’s manifestation. Considering the present situation it seems more likely that Sensex to trade between 20000 to 20900 points for some days.

On November 13, the Sensex opened at 20248 points and went in a sea-saw momentum till November 26, to close at 20425 points gaining 176 points in the fortnight. In the middle it has touched its peak of 20934 points on November 19, and it was at the lowest level of 20137 points on November 22. In the same way NSE Nifty opened at 5998 on November 13, and touched its highest level of 6212 points on November 19, before closing to 6059 points, gaining 60 points in the last 15 days. Nifty was at the lowest level of 5972 points on November 22. 

On the global front the US Dow was in a flamboyant mood with a spurt of 2.12% due to talks regarding extension of QE regime for some more time. Asian indices closely followed the US and then gained momentum with Japan’s Nikkei heading the charge with a gain of 7.51 per cent followed by China’s Shanghai Composite, Hong Kong’s Hang Seng, Germany’s Dax and South Korea’s Seoul Composite, which gained by 4.70 per cent, 4.49 per cent, 2.69 per cent and 1.14 per cent respectively. On the other hand UK’s FTSE, Taiwan and Singapore’s STI remained in red with marginal loses. 

As far as FIIs activity is concerned their honeymoon at Dalal Street continues with a net purchasing of Rs 3542 crore during the last fortnight. The best part of this saga is that during this period barring November 21 they remained net purchaser throughout. On the other hand Indian Mutual funds were in a sober mood with net sales Rs 647 crore during the same period. As far as combined turnover of BSE and NSE is concerned it remained robust between Rs 12135 crore and Rs 13565 crore, showing a very narrow range trading.

On the individual front out of the total indices 1293 scrips appreciated during the course of 15 days. 46 scrips remained unchanged. During the fortnight Torrent Power was the biggest gainer with 22.07 per cent jump followed by Crompton Greaves, Prestige Estate, Siemens and HDIL that appreciated by 16.37 per cent, 15.08 per cent,14.57 per cent and 14.09 per cent respectively. On the other hand Piramal Healthcare was the biggest loser with 12.32 per cent decline followed by Zee Telefilms, EIL, Gitanjali and Coal India, which shed 9.60 per cent, 8.75 per cent, 7.84 per cent and 7.65 per cent respectively. Considering this phase it is very much advisable that investors should stick to blue chip stocks and book profit on regular basis and remain open to pick good stock at dips. Next fortnight would be particularly important as result of assembly election will come and it will certainly indicate the future course of Indian politics and equity market. So it is a time to keep our finger crossed.