Stocks: The benchmark Sensex zoomed to mark new life highs, while gaining 329.35 points to conclude 30,188.15 for the week, while broader Nifty registered above the key 9,400-level. Investors optimism level increased during the weeks trade, racked up by India Meteorological Department (IMD) upgrading the prospect of normal monsoon due to ease in El Nino effect. The IMD on Tuesday announced the year monsoon could be ‘normal’ and bring 100 per cent rainfall instead of 96 per cent as predicted earlier, raising prospects of higher farm and economic growth. While, good corporate results, government’s reforms and return of FIIs seller to buyer mode flavoured the market sentiment.
The domestic investors sidelined the global nervousness after abrupt firing of FBI James Comey by Donald Trump, raising questions about his ability to build enough consensus to implement market friendly policies. The key indices surged on hectic shortcovering spell in rural consumption stocks including Fertiliser and FMCG counters, though weekend sentiment turned sour due to profit-booking amid caution on government release of slew of of macro-datas after the market hours.
After opening the week at 29,915.12, the Sensex rallied to to mark all-time new peak at 30,366.43 and low of 29,877.41, it closed the week at 30,188.15, showing a gain of 329.35 points or 1.10 per cent. (it also registered new closing peak of 30,250.98 on May 11). The Nifty started the week over 9311.45 and zoomed to register life time highs at 9,450.65 before settling the week at 9,400.90, showing a rise of 115.60, or 1.24 per cent. (NSE also marked new closing peak at 9,422.40 on May11). Buying witnessed across the spectrum led by Realty, Auto, Teck, IT, Metal, capital Goods, HealthCare, Consumer Durables, FMCG, Power, Oil&Gas and banking. The secondline shares of smallcap and midcap also witnessed substantial buying activity.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 3,060.25 crore during the week, as per Sebi’s record including the provisional figure of May 12. In the broader market, The BSE Mid-Cap index rose 135.97 points or 0.92 per cent to settle at 14,854.45, underperforming the Sensex. The BSE Small-Cap index advanced 172.99 points or 1.13 per cent to settle at 15,528.83, outperforming the Sensex. Among sectoral and industry indices, realty rose by 5.71 per cent followed by auto 3.26 per cent, teck 3.26 per cent, IT 2.80 per cent, metal 2.03 per cent, capital goods 1.41 per cent, healthcare 1.31 per cent, consumer durables 1.26 per cent, FMCG 1.10 per cent, power 0.67 per cent, oil&gas 0.52 per cent and bankex 0.15 per cent
Among the 30-share Sensex pack, 21 stocks rose and remaining 9 stocks gained during the week. Bharti Airtel jumped 6.26 per cent. The company’s consolidated net profit fell 69.22 per cent to Rs 470.60 crore on 12.12 per cent decline in net sales to Rs 21934.60 crore in Q4 March 2017 over Q4 March 2016. Hero MotoCorp surged 5.38 per cent. The company’s net profit fell 13.9 per cent to Rs 717.75 crore on 7.9 per cent decline in net sales to Rs 6915.20 crore in Q4 March 2017 over Q4 March 2016.
It was followed by M&M 3.86 per cent, Bajaj Auto 3.63 per cent, Sun Pharma 3.62 per cent, Infosys 3.48 per cent, Cipla 3.28 per cent and HUL 2.84 per cent. Gail lost by 2.00 per cent. The bank announced that it has retained the marginal cost of funds based lending rates (MCLR) at the same levels across tenors. It was followed by Coal India 3.64 per cent, ICICI Bank 3.21 per cent, ONGC 3.05 per cent, Tata Steel 2.16 per cent, SBI 2.10 per cent, Tata Motors 1.98 per cent, HUL 1.29 per cent and Dr Reddy 0.96 per cent.
However, Gail lost by 2.00 per cent followed by Asian Paints 1.21 per cent, Power grid 1.03 per cent, ITC 0.99 per cent, Coal India 0.99 per cent and NTPC 0.81 per cent. The total turnover during the week on BSE and NSE rose to Rs 18,690.45 crore and Rs 1,20,528.88 crore, respectively, as against last weekend’s level of Rs 17,292.52 crores and Rs 1,07,803.40 crores.
Bullion: Gold continued its bearish trade at the domestic market for the third week in row on subdued offtake from investors and stockists and lack of local buying interest at the existing levels. Marketmen said easing demand from jewellers and retailers at existing levels despite a recovery at the global level. Standard gold shed a whopping 4.46 per cent in its third week downslide, or Rs 1,290.00 per 10 grams. Elsewhere, silver remained under selling pressure for the fourth week owing to sustained unwinding of speculative positions as well as poor industrial demand.
In worldwide trade, the precious metal notched gains as the dollar drifted lower following slightly weaker-than- expected US retail sales and inflation data. The sharp rally for the dollar at the start of the week has slowed, helping ease some pressure on gold, while sluggish trading for stocks over the last few sessions has also elevated gold’s haven appeal, at least in the short term. The yellow-metal finished the week less than 0.10 per cent higher after posting losses over the previous two weeks. In other metals trading, basis, silver saw a third-straight session win, which hasn’t happened since mid-April. It wrapped up the week about 0.80 per cent higher.