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Weekly Market Update: Roller Coaster week for NIFTY and Sensex

Date: 6/1/2019

 

Short Market Update: Sensex and Nifty face a weekly loss, the rupee has maintained its stance, the expectation to fall in NPA in March 2019, 3 way bank merger swap ratio announced, mutual funds assets in 2018 rose by 5.54%

After a roller coaster week, on Friday, markets ended higher, with BSE Sensex up 181.39 points or 0.51% and closed at Rs 35,695.10, and NSE Nifty up 55.10 points or 0.52% at Rs 10,727.40. Midcap up by 71.67 points or 0.48% and closed at Rs 15,147.60. And, Small Cap up 19.73 points or 0.14% and ended at Rs 14,592.41.

A positive end to the market is attributed to the positive global cues. The rally was driven by the news of US and China trade talk to be held next week.

This week, Sensex fell 544.09 points or 1.06% and closed at Rs 35,695.10, while Nifty fell 295 points or 1.22%, and closed at Rs 10,727.40.

The rupee appreciated 0.36% (Rs 0.254) against the dollar during the week.

 

RBI: Bank NPA’s might fall in March 2019

Reserve Bank of India expects a fall in bad loans by March, suggesting ease to the stress Indian lenders have been facing for three years. According to the latest Financial Stability Report, the gross non-performing ratio of the Indian banking system will drop to 10.3% by March 2019.

 

Swap Ratios announced for the merger of Bank of Baroda, Vijaya Bank, and Dena Bank

The merger has moved a step closer after the swap ratios have been announced. For every 1000 shares of Bank of Baroda, 110 shares of Rs 2 will be issued to Dena Bank shareholders and 402 shares of Rs 2 each to Vijaya Bank shareholders. The swap ratio shows that Dena Bank has been valued at a discount of 27% to the current market price and Vijaya Bank at 6% discount to the current market price.

 

Mutual funds see strong retail participation in 2018

In 2018 mutual fund shave added Rs 1.24 lakh asset base despite volatile markets. The assets under management grew by 5.54% by December 2018. This is the 6th consecutive year that mutual funds have seen a rise in AUM. Strong SIP performance from retail investors, SEBI efforts on the investor education and AMFI’s “Mutual Funds Sahi Hai” campaign are mainly the contributors to the AUM in 2018.

 

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