On Friday, foreign institutional investors (FIIs) bought shares worth $30 million, while domestic institutional investors (DIIs) sold shares worth $28.73 million, according to provisional data on the exchanges. YTD, FIIs have bought shares worth $9.9 million.
On Friday, the 30-share BSE Sensex ended higher by 37.25 points, or 0.15%, at 25,099.92 points, while the broader 50-share Nifty gained 15.60 points, or 0.21%, to close at 7,508. The US consumer spending increased 0.2% in May after being flat in April, and was down for a second straight month when adjusted for inflation, the US Commerce Department said on Thursday. Meanwhile, Chinas industrial profits in May grew 8.9% y-o-y, which was lower than the 9.6% y-o-y growth seen in April. The yields on the benchmark 10-year bond ended marginally higher at 8.74% on Friday.
The market gains were led by IT and pharma stocks. Sun Pharma (4%), TCS (3.8%), Cipla (2.6%), Dr Reddys Laboratories (1.9%), Wipro (1.9%) and ITC (1.1%) were the top gainers on the 30-share Sensex.
Ranbaxy gained 8.2% intraday to touch a 52-week high of R510.45 on Friday after the pharma major, in an exchange release, informed that its wholly-owned subsidiary Ohm Laboratories has received approval from the USFDA for the generic version of blood pressure drug Diovan. The scrip ended 5.4% higher at R497.15.
It was a dismal week, with the benchmark indices retreating for three out of five sessions and the BSE Sensex ending lower by 0.02%.
On Monday, the market fall was led by ITC after health minister Harsh Vardhan proposed a tax hike on cigarettes from R2 to R3.5 per stick. The scrip ended 6.5% lower at R314.05. On Tuesday, the markets rallied as Brent crude prices softened. On Thursday, oil & gas stocks were the major losers as the government decided to hold the gas price hike by another three months. ONGC fell 5.9% to post its biggest single-day fall in a year.
However, experts remain bullish on the markets. If India can engineer a new economic and, hence, a new earnings, cycle, most of the Street could be surprised by the amount of upside to share prices. If, for all companies in our coverage universe where RoA is below average, we were to lift FY16E RoA to its historical average, FY16E aggregate earnings estimates would rise by 45%, Morgan Stanley analysts said in a recent report.
Among its peers, most Asian markets ended lower on Friday. The Nikkei 225 (1.4%), Kospi (-0.3%), Straits Times (-0.2%), Jakarta Composite (-0.6%), Shanghai Composite (-0.1%) and Taiwan Taiex (-0.1%) ended in the red. For the week, Kospi was the major gainer as it rose by 1.6% in dollar terms.
Back home, 18 of the 30 Sensex stocks ended in the red on Friday. However, in the broader market, breadth was strong with 1,675 stocks trading on the BSE ending higher compared with 1,325 declines. Most of the 13 BSE sectoral indices ended in the green. The BSE Healthcare (2.48%), BSE IT (2.45%), BSE Realty (0.8%), BSE Power (0.7%) and BSE FMCG (0.5%) were the major gainers.
The upcoming Budget is likely to provide the next big trigger for the market. It is also likely to monitor the situation in Iraq. The NSE cash turnover on Friday stood at R16,130 crore, while the turnover in the F&O segment was R95,133.51 crore. The cash turnover on the BSE stood at R3,361.27 crore, while, on the F&O segment, it stood at R28,252.25 crore.