Weekahead in Indian markets: equities continue their momentum

The Indian markets made the week dream with the convergence of several positive factors, including the rupee's rise, the drop in crude oil prices, the renunciation of US sanctions by Iran and the decent results of the companies . Benchmarks advanced about 5% during the week, with Nifty breaking the 10,550 mark.

This relief comes after falling 8% in October and 3% the previous week.

Internal liquidity issues appear to have been proactively managed by the RBI, which made open market operations of Rs 360 billion in October and announced OMOs worth $ 400 billion. dollars in November.

In terms of institutional activities, the IFIs were net sellers with 38.63 billion rupees, while the DIIs were net buyers with 53.56 billion rupees in shares.

The rupee finished at a high of one month at 72.42 dollars the dollar. Oil prices posted their biggest weekly loss since February, down nearly 6% to $ 73. Reports indicate that the United States has agreed to waive eight countries, including India, to continue importing Iranian crude following the reimposition of OPEC producer sanctions on November 5 . India is also looking for a way to pay this crude in rupees.

The public quarrel between the government and the RBI was somewhat relaxed after he said that the central bank's autonomy was "essential".

On the political front, Prime Minister Narendra Modi has unveiled measures to address the credit and liquidity problems of MSMEs and the government has announced the launch of a new portal that will help micro, small and medium enterprises to get a quick credit.

The total collection of India's gross receipts through the GST exceeded one trillion rupees in October due to increased festival sales and greater compliance. This compares with Rs 944.42 billion in September.

The government's target was to raise about Rs.1 trillion of GST each month for the current fiscal year, but the actual raking effort was not achieved month after month. The only exception earlier was in April, during which the recoveries had exceeded the target, but it had been reduced to nothing due to year-end adjustments.

With respect to the specific shares, power companies such as Adani Power and Tata Power were the focus of concern after the Supreme Court authorized CERC to amend the power purchase agreements of three power plants located in Gujarat. The decision paves the way for CERC to amend PPAs, allowing these companies to pass on the increased cost of fuel.

ICICI Bank rose after announcing better numbers than those estimated for the second quarter. The brokerages were optimistic and the bank remained one of D-Street's favorite securities.

Auto inventories rose after the release of strong October sales. Hero MotoCorp has announced a 16.4% increase in its total sales, to 7.34,668 units. Bajaj Auto recorded its highest monthly sales of motorcycles ever recorded during the month. Motorcycle sales increased by 33% to 4.32 lakh and sales of three-wheelers by 30%. M & M announced a 17% growth in total tractor sales to 47,376 units, while total exports increased 2% to 1,064 units.

At the macroeconomic level, industrial production in eight major industries grew at a slower pace in September (4.3% vs. 4.7% in August) due to lower production of cement, steel, refinery and natural gas products.

Manufacturing sector growth accelerated in October as firms responded to higher new orders by increasing production, input purchases and employment. The manufacturing PMI Nikkei India went from 52.2 in September to 53.1 in October.

At the same time, India climbed 23 places to 77th on the World Bank's Ease of Doing Business index, becoming for the first time the first country in South Asia and the third largest in the world. BRICS.

For the coming week, markets are expected to continue their gains because of positive news flows on key variables such as sanctions on the rupee, oil and Iran. However, investors will begin to focus on the elections in the coming weeks, during which we should witness instability. Last week's gains seem to indicate that Nifty has reached an intermediate floor and is expected to consolidate to current levels, albeit with minor corrections. You have to start nibbling