INDIAN EQUITIES WRAP UP 2014 WITH BEST GAINS IN FIVE YEARS; DECEMBER AUTO SALES IN FOCUS TODAY

INDIAN EQUITIES WRAP UP 2014 WITH BEST GAINS IN FIVE YEARS; DECEMBER AUTO SALES IN FOCUS TODAY

WORLD MARKETS

After a positive start, US indices saw a sustained downward move through the session to end with cuts of 0.9%-1% on the last day of 2014.

Weekly initial jobless claims numbers came in a bit higher than expected at 298,000. The Chicago Purchasing Managers' Index for December came out at 58.3, below expectations. Pending home sales rose just 0.8% in November from a downwardly revised October reading.

Nymex crude fell 85 cents to $3.3 a barrel, down 46% for the year and the lowest since May 2009. Brent fell 44 cents to $57.5. Gold fell to settle at $1184, down 1.5% for the year.

In Europe, Germany and Spain were shut while FTSE and CAC gained 0.3% and 0.6% in the truncated session.

For 2014, Dow gained 7.5% while S & P 500 and Nadaq rose 11.4% and 13.4% respectively. In Europe, FTSE and CAC lost 2.7% and 0.5% respectively while DAX gained 2.6%. Argentina was the best performing market with 59% gain, followed by Shanghai Composite, up 53%. Russia was the worst performer with 45% dip, followed by 29% lower Greece.

                                                             

AT HOME

It was a positive end to the calendar 2014 as benchmark indices gained four tenth of a percent, extending the winning streak to fourth straight day. Sensex gained 96 points to settle at 27499 while Nifty finished at 8283, up 34 points. BSE mid-cap and small-cap indices soared 1.1% each. Except a 0.3% cut in BSE Auto index, all other sectoral indices ended higher with Power and Realty indices leading the tally, putting on 1% each.

FIIs net bought stocks and index futures worth Rs 481 cr and 131 cr respectively but net sold stock futures worth Rs 21 cr. DIIs were net sellers to the tune of Rs 31 cr.

Rupee appreciated 35 paise to end at 63.03/$.

For the calendar 2014, Sensex and Nifty gained 30% and 31.4% respectively, registering best yearly gain after 2009.

Data released yesterday showed that India's fiscal deficit for the April-November period stood at Rs. 5.25 trillion, 99% of the budget estimate of Rs 5.31 trillion for the fiscal. This was mainly on account of a slippage in revenue collections. While total revenue receipts were at 45.5% of budget estimates, total expenditure was at 60% of the budgeted amount.

The output of eight crucial industries grew by a five-month high of 6.7% in November, marginally higher than 6.3% in the previous month. The output had risen 3.2% in November last year.

OUTLOOK

Today most of the world equity markets are shut for New Year’s Day. SGX Nifty is suggesting about 10 points lower opening for our market.

It was yet another day of consolidation for Nifty within the broad 8373-8150 range. As we have been mentioning 8373 is the 61.8% retracement level of the entire 8627-7961 fall, a crossover of which will also confirm a higher-top higher-bottom formation on the daily chart, which is required to turn the near term view decisively bullish.

On the way down 8150-8115 continues to be the support area, where 8150 is the bottom made last week while 8115 is the 61.8% retracement level of the recent 7961-8365 pullback. A breach of this support zone can take the benchmark back to the 7961 bottom.

Till this range is taken out, one should adopt a stock-specific approach. Within this broad range, 8300 and 8200 would be immediate resistance and support levels respectively.

Auto companies will report their December sales figures starting today.

US markets will be closed today for New Year's Day.