Indian equity market summary
■ The Indian equity market reversed the previous week’s loss and surged in
the reported week; benchmarks CNX Nifty and S&P BSE Sensex rose 2.8%
and 2.4% respectively.
■ The market was primarily boosted by the RBI’s unexpected decision to cut
the repo rate by 25 bps to 7.75%.
■ Rate sensitive counters such as realty, capital goods and banks benefitted
the most from the RBI’s action; S&P BSE Realty, S&P BSE Capital Goods
and S&P BSE Bankex rose 5.7%, 4.8% and 3.2% respectively.
■ Sentiments were also optimistic ahead of the release of domestic CPI and
IIP numbers; later, the numbers came in better-than-expected - cheering the
investors.
■ Further gains were, however, restricted as shares of metal companies
plunged amid falling global commodity prices; S&P BSE Metal was the
biggest sectoral decliner – down 4.2%.
■ The market was also weighed down by a sell-off in oil & gas companies due
to a persistent decline in oil prices; S&P BSE Oil & Gas lost nearly 1%.
■ Some weak cues across global markets, especially Switzerland’s
unexpected decision to abandon its currency cap, pulled down the market
further.
■ Meanwhile, the market ignored the WPI inflation numbers for December,
which inched up to 0.11% from 0.00% in the previous month.
■ The Indian equity market reversed the previous week’s loss and surged in
the reported week; benchmarks CNX Nifty and S&P BSE Sensex rose 2.8%
and 2.4% respectively.
■ The market was primarily boosted by the RBI’s unexpected decision to cut
the repo rate by 25 bps to 7.75%.
■ Rate sensitive counters such as realty, capital goods and banks benefitted
the most from the RBI’s action; S&P BSE Realty, S&P BSE Capital Goods
and S&P BSE Bankex rose 5.7%, 4.8% and 3.2% respectively.
■ Sentiments were also optimistic ahead of the release of domestic CPI and
IIP numbers; later, the numbers came in better-than-expected - cheering the
investors.
■ Further gains were, however, restricted as shares of metal companies
plunged amid falling global commodity prices; S&P BSE Metal was the
biggest sectoral decliner – down 4.2%.
■ The market was also weighed down by a sell-off in oil & gas companies due
to a persistent decline in oil prices; S&P BSE Oil & Gas lost nearly 1%.
■ Some weak cues across global markets, especially Switzerland’s
unexpected decision to abandon its currency cap, pulled down the market
further.
■ Meanwhile, the market ignored the WPI inflation numbers for December,
which inched up to 0.11% from 0.00% in the previous month.
Other major domestic news
■ The RBI reduced the policy repo rate under the liquidity adjustment facility
(LAF) by 25 basis points from 8% to 7.75% with immediate effect.
Consequently, the reverse repo rate under the LAF stood adjusted at
6.75%, and the marginal standing facility (MSF) rate and the bank rate at
8.75% with immediate effect; it kept the CRR unchanged at 4%.
■ India’s Index of Industrial Production came in at 3.8% in November vs -4.2%
in October.
■ India’s Consumer Price Index (CPI) rose to 5% in December vs 4.38% in
November. WPI-based inflation inched up to 0.11% in December from
0.00% in the previous month.
■ India's trade deficit declined to a 10-month low of $9.43 bn in December
mainly on account of falling imports due to slump in crude oil prices.
■ The World Bank expects India's growth to accelerate to 6.4% in 2015 and
then to 7% in each of the next two financial years, compared with an
estimated 5.6% for the current year.
■ The government has approved 12 FDI proposals totalling Rs 1,827 cr.
■ The RBI has relaxed the norms for forex hedging for exporters and
importers by allowing them to book forward foreign exchange contracts in
excess of 50% of the eligible limit.
■ SEBI notified a stricter set of insider trading norms to check illicit
transactions in shares of listed firms by management personnel and
'connected persons'.
■ At the Vibrant Gujarat Summit, over 21,000 separate investment intentions,
worth Rs 25 lakh cr, were signed
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