8 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23, 2017 DSIJ. in^
Minor Correction In June - Good
For Markets!
I
ndian markets showed signs of
fatigue at record highs, in line with
their global peers. Benchmark
index BSE Sensex was down by 0.
per cent in the past two weeks,
while Nifty slipped 0.44 per cent during
the same period.Dow Jones and S&P 500 slid 0.23 per cent
and 0.99 per cent, respectively. German
markets slipped the most in the past
couple of weeks with DAX closing down
by 3.20 per cent. Other major European
markets, namely, CAC 40 and FTSE 100
were down by 2.16 per cent and 1.15 per
cent, respectively.Asian markets showed relative
outperformance as compared to their
global peers with Nikkie managing to stay
flat, slipping only by 0.05 per cent and
Hand Seng moving down by 0.54 per cent.The FIIs turned net sellers to the tune of
`-2828.43 crore, while the DIIs were net
buyers to the tune of `4294.32 crore.The crude oil prices have jumped from
$46 per barrel to almost $49 per barrel in
the past one week. However, the pressure
on crude oil prices is expected to remain
and does not seem to be affecting the
mood of the equity markets. Gold prices
are seen softening even as USD is showing
some strength. Owing to the GST
implementation, different sectors in India
reacted to the biggest tax reform. FMCGwas the top performing index, with the
BSE FMCG index climbing 5.60 per cent
in the past two weeks. BSE Metal index
was the only other sectoral index that put
up a positive performance, gaining 2.
per cent in the past two weeks.BSE Realty index, which was top
performing index over the last one year,
shed gains by 0.48 per cent in last couple
of weeks. BSE Auto and BSE Bankex
dragged the broader markets by sliding
1.87 per cent each over the last 15 days.
The global equity markets are gush with
liquidity, and the same is seen in the
healthy participation of investors in the
IPO markets globally. Locally in Indian
markets, the past week saw CDSL listing
on the bourses with a hefty premium.
The share got listed with a whopping 80
per cent premium to its issue price of
`149 per share.Performance Of IndicesSENSEX 31,311.57 31,221.62 -0.
Nifty 9,657.55 9,615.00 -0.
Mid-Cap 14,817.74 14,809.37 -0.
Small-Cap 15,653.97 15,572.66 -0.
Auto 24,172.13 23,719.02 -1.
Bankex 26,844.85 26,342.56 -1.
FMCG 10,210.30 10,782.86 5.
IT 9,873.88 9,900.88 0.
Metal 11,325.18 11,584.94 2.
Power 2,236.69 2,227.59 -0.
Realty 2,083.52 2,073.51 -0.03rd July
2017Gain/Loss
(%)19th June
2017
IndicesNet Investment In Equity Markets (`/Cr)19-Jun-17 -250.39 529.
20-Jun-17 -312.84 477.
21-Jun-17 -152.82 -41.
22-Jun-17 192.68 455.
23-Jun-17 269.95 -45.
28-Jun-17 -469.09 168.
29-Jun-17 -1,140.77 600.
30-Jun-17 -160.48 1,195.
03-Jul-17 -804.67 954.
Total -2828.43 4294.Date FIIs DIIsDow Jones 21,528.99 21,479.27 -0.
S&P 500 2,453.46 2,429.01 -0.
NASDAQ 6,239.01 6,110.06 -2.
FTSE 100 7,463.54 7,377.09 -1.
DAX 12,888.95 12,475.31 -3.
CAC 40 5,310.72 5,195.72 -2.
Hang Seng 25,924.55 25,784.17 -0.
Nikkei 20,067.75 20,055.80 -0.Indices
19th June
201703rd July
2017Gain/Loss
(%)The RBI was the newsmaker of the past
two weeks with the central bank coming
out with financial stability report which
stated that the advances by NBFCs
increased at a faster rate than the banks
and that the aggregate balance sheet of
the NBFC sector expanded by 14.5 per
cent during 2016-17. However, NBFCs’
net profit was down by 2.9 per cent.With the daily index charts of major
benchmark indices forming a ‘lower top,
lower bottom’ formation, chances are
that we may see some consolidation
going forward and that action may
come from either the mid-cap or
small-cap space in the coming few
months.Market Watch
The global equity markets aregush with liquidity, and the
same is seen in the healthy
participation of investors in
the IPO markets globally.
Locally in Indian markets, the
past week saw CDSL listing on
the bourses with a hefty
premium.
DS