For the week ended November 20, the Sensex added 257.96 points, or 1 per cent, and the NSE Nifty 94.30 points, or 1.21 per cent — their best weekly show since October 9. (Reuters)

Markets are likely to remain volatile amid derivatives expiry as parliamentary proceedings will largely dictate trend in the holiday-shortened week ahead, experts say.

Inflows by foreign institutional investors and global cues will be other deciding factors.

The winter session of Parliament starts on November 26.

The markets will be closed on November 25 on occasion of Guru Nanak Jayanti.

“Going ahead, all attention will be on the winter session of Parliament and whether the government is able to reconcile differences with the Opposition and pass key legislations,” said Dipen Shah, Kotak Securities Head of Private Client Group Research.

“A rate hike in the US looks imminent in the next policy meeting of the Fed, but that is largely discounted by markets.”

The winter session beginning next week is set to be a stormy affair, with the Opposition buoyed by the Bihar results getting ready to confront the government on a host of issues, which could push back efforts for an early passage of key legislations, including GST.

According to experts, being a truncated trading week with absence of any domestic data point, the market is likely to largely follow its global peers.

“We expect the markets to trade in the negative zone in the coming week. We have advised clients to go short on every bounce till it holds below 7,930,” said Vijay Singhania, founder-Director, Trade Smart Online, a leading discount brokerage firm.

Traders slated to roll over positions in the futures and options (F&O) segment could contribute to volatility.

“With November 2015 derivative series expiry coming up next week, we expect the markets to remain volatile as traders roll over positions to December 2015 series,” Singhania added.

Ravi Shenoy, AVP-Midcaps Research, Motilal Oswal Securities said: “Institutional flows have been balanced with DIIs’ buying balancing out selling by FPIs. Overall, we expect a range-bound market with stock-specific action unless there is positive action in Parliament.”

For the week ended November 20, the Sensex added 257.96 points, or 1 per cent, and the NSE Nifty 94.30 points, or 1.21 per cent — their best weekly show since October 9.

The 30-share benchmark closed at 25,868.49, up 26.57 points, while the broad-based Nifty settled higher by 13.80 points at 7,856.55 on Friday.

During the week, Indian rupee appreciated marginally 0.07 per cent to 66.09 on November 20. The currency was at 66.13 on November 13. (PTI)

After three consecutive weeks of downfall and a loss of nearly 7 per cent in this period, the domestic benchmark indices witnessed some buying at lower levels that helped BSE Sensex and NSE Nifty clock a gain of over 1 per cent during the week ended November 20. According to market experts, value buying at lower levels and upbeat global cues supported the market sentiment this week.

The BSE Sensex and NSE Nifty advanced 257.96 points and 94.30 points to 25,868.49 and 7,856.55, respectively, for the week ended November 20.

In the 50-share index, GAIL (India) surged 23.55 per cent in the week under review. The share price of the company jumped from Rs 282 on November 13 to Rs 348.40 on November 20. Vedanta (up 6.65 per cent), Ambuja Cements (up 5.06 per cent), Zee Entertainment (up 4.94 per cent) and Mahindra & Mahindra (up 4.88 per cent) remained among other major gainers in the index.

On the other hand, Axis Bank slid the most 5.10 per cent, followed by Infosys (down 4.52 per cent), Tata Power (down 2.34 per cent), Sun Pharma (down 1.96 per cent) and Hero MotoCorp (down 1.94 per cent) stood amond major losers.

Hitesh Agarwal, head research, Reliance Securities, said, “Having digested the Bihar state election outcome, the slowdown in September IIP and the uptick in CPI Inflation for October in recent weeks, investors opted to do some bottom-fishing at lower levels. Moreover, the strength witnessed in the Indian stock market was in tandem with the buying witnessed in equities across global markets.”

Gaurav Jain, director, Hem Securities, said, “Indian indices registered gains of about 1 per cent in the week gone by aided by hopes of some amendments on GST Bill, positive global cues, rise in crude prices, short covering, and lower level buying. However, continued selling pressure by foreign portfolio investors, Intensifying geopolitical worries in Europe and FOMC minutes indicating a rate hike by next month capped the gains.”

Sectorwise, the BSE Oil & Gas index and BSE FMCG index advanced 4.28 per cent and 2.81 per cent. The BSE Realty index and the BSE IT index slid 1.46 per cent and 1.11 per cent during the week under review.

In the week, government doled out relief to sugar cane farmers by providing them subsidy at the rate Rs 450 per tonne, interest rate subsidy scheme for exporters for five years to counter falling exports and clearing on the war footing stalled road projects worth Rs 35,000 crore. IPO of Cochin Shipyard and FPO for Coal India were also cleared.

Foreign institutional investors, or FIIs remained in the selling mode and sold stocks worth Rs 3,207 crore during the week.

Jimeet Modi, chief executive officer, SAMCO Securities, said, “Confidence is returning, markets are rising gradully on the back of continued pessimism. Government also seems to move ahead with its growth agenda, which will be positive for the market going forward.”

The government this week also offered a gift to 4.2 million central government employees and 5.2 million retirees in the form of 7th pay commission hikes up to 23 per cent, entailing Rs 73,000 crore outflow on the exchequer.

Kotak Institutional Equities in a research note said, “We expect automobiles (4W, in particular), consumer durables and real estate sectors to benefit from the largesse. Although current demand conditions are somewhat subdued in the sectors, the additional funds in the hands of central and state government employees should be a positive for volume growth of the two sectors.”

During the week, Indian rupee appreciated marginally 0.07 per cent to 66.09 on November 20. The currency was at 66.13 on November 13.

For upcoming trading sessions, Agarwal said, “In the absence of any domestic economic data point, the market is likely to largely follow its global peers. However, the November series F&O expiry coupled with the fact that it is a 4-day trading week, could induce some volatility in the market.”

With the Winter Session of the Parliament set to begin on November 26, investors will also keenly watch the fate of important bills like the Goods and Services Tax(GST).

The second quarter numbers of Havells India missed at the topline but EBITDA was in line on higher margin. 2H outlook appears robust on reviving infrastructure spend and upcoming festive demand. Increased industrial demand is likely to translate into stronger sales not only in wires and cables but also in switchgears where EBIT margins are likely to be sustained. This is likely to lead to increased sales and better EBIT margins.

Stronger infrastructure spending has led to increased demand for electrical wires and cables with industrial volumes up 16% y-y and domestic volumes up 4% y-y. Overall segment revenue was lower owing to lower commodity prices.

Increased industrial demand is likely to translate into stronger sales not only in wires and cables but also in switchgears where EBIT margins are likely to be sustained. This may lead to increased sales & better EBIT margins.

Revenue decline is attributable to: a) a 1.3% decline y-y in switchgears, b) cables and wires falling by 5% y-y despite volume growth of 16% and 4% in industrial and domestic segments owing to weaker commodity prices; c) lighting and fixtures growth (1.5% y-y) being muted as LED growth (+48% y-y) was offset by decline in CFL volumes; and d) electrical consumer durables growing at c6%.

Metals and mining major Vedanta and Aditya Birla group flagship firm Hindalco Industries will shift out of the BSE benchmark Sensex from December 21. (PTI)

Metals and mining major Vedanta and Aditya Birla group flagship firm Hindalco Industries will shift out of the BSE benchmark Sensex from December 21.

These stocks would be replaced by Adani Ports and Special Economic Zone and Asian Paints Ltd.

Besides, three firms — NHPC, Jaiprakash Associates and Unitech — would be dropped from the BSE 100 index as well as S&P BSE Carbonex, while various changes have also been made to a host of other BSE indices as well.

The move is a part of Asia Index Private Ltd’s semi-annual reconstitution results.

The BSE-100, an index of the top 100 listed companies in the country, would see the inclusion of — Britannia Industries, Bharti Infratel and Motherson Sumi Systems.

As many as nine firms would be replaced on BSE 200 index, while 22 companies would be excluded from BSE 500.

Companies like Muthoot Finance, Unitech and IFCI would be excluded from BSE 200, which will see the inclusion of firms such as IDFC, Pfizer India and Adani Enterprises.

Reliance Industrial Infrastructure and Financial Technologies India Ltd among others would be moved out of BSE 500, while SpiceJet and Trident are among the stocks which would be included.

BSE Teck would see replacement of Persistent Systems and KPIT Technologies with Tata Elxsi and MphasiS.