Low level buying and rise in crude oil prices helped benchmark indices BSE Sensex and NSE Nifty to register their biggest weekly gain in 2016 as they surged over 3 per cent for the week ended Feb 19. The 30-share index Sensex rallied 723 points to 23,709.15 on Feb 19 from 22,986.12 on Feb 12. Similarly, the 50-share index Nifty advanced 230 points to 7,210.75 on Feb 19 from 6,980.95 on Feb 12.
Out of 50 components in the Nifty 50 pack, 43 ended the week in green with Bank of Baroda shares surging the most — 22.87 per cent to Rs 139.70 on Feb 19 from 113.70 on Feb 12, followed by Adani Ports and SEZ (up 18.17 per cent), Vedanta (up 17.55 per cent), Tata Steel (up 16.44 per cent), Hindalco Industries (up 13.14 per cent).
On the other hand, Bharat Heavy Electricals (BHEL), YES Bank and Housing Development Finance Corporation shares skid 2.63 per cent, 2.33 per cent and 2.22 per cent, respectively, during the week under review.
Except, the BSE Consumer Durables index (down 1.59 per cent), rest all other sectoral indices on the Bombay Stock Exchange (BSE) closed in green. The BSE Metal index, BSE Capital Goods index and BSE Auto index climbed 8.52 per cent, 5.95 per cent and 4.91 per cent, respectively.
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “Domestic equity markets were buoyed by the rise in crude prices from their lows on expected freeze in supply by four producing nations. There was some bottom-fishing in stocks which had corrected sharply.”
In the week gone by, Moody’s Investors Service said, Indian economy will grow at 7.5 per cent in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices.
The oil marketing companies (OMCs) slashed prices of petrol by 32 paise per liter and raised diesel rates by 28 paise per liter in order to align the domestic rates of the automobile fuels with global benchmarks. After price change, petrol will be priced at Rs 59.63 per litre including state taxes in Delhi while a litre of diesel will cost Rs 44.96 per litre.
In a scrip specific development, shares of software security solutions provider Quick Heal Technologies made a weak debut on the bourses on Thursday and closed over 20 per cent down against its issue price of Rs 321. The share price of Quick Heal was at Rs 258.45 on Friday.
Foreign Institutional investors offloaded shares worth of Rs 2365 crore in the past four trading sessions till Feb 18. Rupee slid marginally 0.08 per cent to 68.49 on Feb 18 from 68.44 on Feb 12. The domestic currency market were closed on Friday on account of “Shiv-Jayanti”.
On upcoming trading sessions, Shah added, “Going ahead, we expect sector specific movement based on expectations from the Union Budget 2016. A credible Union Budget, with focus on growth and fiscal rectitude, will help improve sentiments of the markets.”