Weekly Wrap-Up - December 8, 2012 - Eastern Financiers

Markets clocked gains for the third consecutive week amid Parliament's approval to the ardently awaited voting on FDI in multi brand retail that has been approved in both the houses of Parliament, the sustained inflow of foreign funds and the macro economic releases on services & manufacturing PMI among others paved the assertive vogue for the markets this week. Positive Global markets also supported the indices back home.

The UPA government won the vote on FDI in multi-brand retail in the Rajya Sabha on the ultimate day of the week. Earlier, FDI in multi-brand retail on Wednesday 5 December 2012 got the approval of the Lok Sabha as the Opposition motion seeking immediate withdrawal of the decision was rejected convincingly as MPs of BSP and SP walked out of the house before the vote. Lok Sabha also rejected the motion seeking amendment to the rules notified by the Reserve Bank under Foreign Exchange Management Act (FEMA) to enable FDI in multi-brand retail.

India's manufacturing sector expanded at its fastest pace in five months in November 2012, boosted by strong export orders and a surge in output, a business survey showed. The HSBC manufacturing Purchasing Managers' Index (PMI), which gauges the business activity of India's factories but not its utilities, rose to 53.7 in November from 52.9 in October. Readings above 50 denote growth. The new export orders sub-index rose to a six-month high of 55.9 in November, giving thrust to overall orders and factory output, both of which expanded at their fastest pace since July.

India's services sector grew at its weakest pace in over a year during November 2012 due to slowing orders. The HSBC services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 52.1 in November from October's 53.8, to register a 13-month low. While the November reading marked a second straight month-onmonth drop, the index has held above 50 mark for a year now.

The disappointing festive season for car makers continued into November, with Ashok Leyland, Hero Motocorp, TVS Motors and Tata Motors posting drop in sales, while market leader Maruti Suzuki managed to swell. Mahindra & Mahindra was the lone warrior able to maintain a strong growth in a slow market.

Benchmark indices clambered around half a percent this week with broader ones decisively outperforming the benchmarks that impelled close to two and a half percentage point. Except for IT and Telecom Sector that shaved off around 3-4%, rest of the sectoral indices witnessed gains of almost 0-5% with the Realty Index being the leading mover.

Source : Equity Bulls

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