The BSE Sensex and NSE Nifty snapped four week losing streak as PM Narendra Modi’s meeting with the India Inc, short coverings, value buying amid key decisions taken by the Cabinet supported market sentiments for the week ended September 11. During Sept 4 and Sept 11, Sensex gained 408.31 points, or 1.62 per cent, at 25,610.21 while Nifty closed the week 134.25 points, or 1.75 per cent, higher at 7,789.30.
Barring the Consumer Durables index (down 1.31 per cent), BSE FMCG index (down 1.30 per cent) and BSE Healthcare index (down 1.26 per cent), all other sectoral indices on the Bombay Stock Exchange ended in green. The BSE Auto index surged the most — 3.91 per cent at 17,647.98, followed by BSE Realty index (up 3.75 per cent at 1,288.86), BSE Capital Goods index (up 3.36 per cent at 1,5951.38) and BSE Power index (up 3.23 per cent at 1,785.80).
Vinita Mahnot, equity research analyst, Hem Securities, said, “Prime Minister meeting with industrialists, low level buying and short covering helped markets to jump over 1.5 per cent during the week.”
Dipen Shah, head of private client group research, Kotak Securities, said, “Markets ended the week with gains of around 2 per cent on benchmark indices. The gains came on the back of stability in global markets, especially China. The Chinese Premier calmed sentiments during the week, which helped stabilise markets. The postponement of GST was taken in the stride.”
According to National Security Depository Ltd (NDSL) data, foreign institutional investors remained net sellers in the equity markets last week as they sold shares worth Rs 3,010.65 crore during the period.
In the BSE 100 index, Power Grid Corporation of India, IDFC, Crompton Greaves, Mahindra & Mahindra Financial Services, ICICI Bank, Mahindra & Mahindra, Hindalco, Tata Power and State Bank of India were some the companies which touched their new 52-week low during the week.
During the week gone by, Director General Safeguards (DGS) recommended 20 per cent safeguard duty on steel imports, which gave much needed relief to the entire steel sector to safe guard against cheap imports from China, South Korea and Japan. Handsome growth of 36 per cent in the month of August in Indirect Tax collection growth raised the hopes for 7 per cent plus growth rate for the year. Factory output figures (IIP data) which came after market hours on Friday grew 4.2 per cent in July against 0.9 per cent a year ago.
On the IIP data, Debopam Chaudhuri, chief economist, ZyFin Research, said, “This is a positive surprise with the general expectations being around 3.5 per cent.”
The major event next week is the US Fed meeting. There is uncertainty in global market on whether the US Federal Reserve’s first interest rate hike in a decade will come at Fed’s monetary policy meeting next week. According to market experts, a hike in interest rate in the US is likely to drain liquidity from emerging markets like India and redirect it to developed economies.
For the next week, Jimeet Modi, CEO, SAMCO Securities, said, “The coming week shall be volatile due to Fed meeting and traders can remain on the sidelines and wait till the outcome is discounted.”