1. India equities post fourth straight weekly gains; Sensex, Nifty end at record highs

India equities post fourth straight weekly gains; Sensex, Nifty end at record highs

Market posted fourth consecutive weekly gain, with BSE Sensex ending new closing highs at 31,273.29 and the broader Nifty settling at record closing peak at 9,653.50.

By: | Updated: June 3, 2017 5:30 PM
Market, BSE Sensex, Nifty, Kerala, North East, Sun Pharma, Tech Mahindra, Reliance Market posted fourth consecutive weekly gain, with BSE Sensex ending new closing highs at 31,273.29 and the broader Nifty settling at record closing peak at 9,653.50.(Image: The Indian Express)

Market posted fourth consecutive weekly gain, with BSE Sensex ending new closing highs at 31,273.29 and the broader Nifty settling at record closing peak at 9,653.50. Early onset of monsoon hitting Kerala and North East led the investor optimism during the week session, in the absence of major triggers as overseas markets largely closed for public holidays. Sentiments underpinned by optimism on growth and sustained domestic liquidity inflows lifted the key indices record breaking spree, muted earning in some key stocks like SunPharma, Tech Mahindra and Reliance Communications created discomfort. The midweeks trading session saw the market in consolidative mode witnessing small losses weighed down by fall in GDP, core infra sectors and manufacturing PMI which slumped to three-month lows along with stocks valuation concern added to the pressure.
India lost the tag of the fastest growing major economy to China in the March quarter with a GDP growth of 6.1 per cent, which pulled down the 2016-17 expansion to 7.1 per cent.

The weekend trading saw the key indices closing with record new peaks on sentiments bouyed by strong fundamentals and return of global market bullishness following positive US manufacturing and Jobs data. The sensex resumed the week lower at 30,944.38 and surged to all-time intra-week high of 31,332.56 and low of 30,869.90 before closing fresh highs at 31,273.29, showing a sharp gain of 245.08 points or 0.79 per cent. It has gained by 1,414.49 points or 4.74 per cent in four weeks. The NSE 50-share Nifty also rose by 58.40 points or 0.61 per cent to close the week at new record peak at 9,653.50 after hitting an all-time high of 9,673.50. The Nifty has also gained by 309.80 points or 3.97 per cent in four weeks.
Buying was led by IPO, FMCG, HC, Auto, Consumer Durables and Bankex. The secondline shares of midcap and smallcap companies also saw substantial buying.

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Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 357.47 crore during the week, as per Sebi’s record including the provisional figure of Jun 02.  In the broader market, the S&P BSE Mid-Cap index rose 281.58 points or 1.94 per cent to settle at 14,801.48. The S&P BSE Small-Cap index rose 224.91 points or 1.49 per cent to settle at 15,311.17. Both these indices outperformed the Sensex.  Among sectoral and industry indices, FMCG rose by 2.83 per cent followed by Healthcare 2.09 per cent, auto 2.02 per cent, consumer durables 1.60 per cent and bankex 0.01 per cent.  However, metal fell by 2.79 per cent followed by oil&gas 1.66 per cent, IT 1.38 per cent, realty 1.15 per cent, teck 1.09 per cent and power 0.36 per cent.  Among the 30-share Sensex pack, 18 stocks rose and remaining 12 stocks fell during the week.

Drug major Cipla was the biggest Sensex gainer last week. The stock rose 7.54 per cent to Rs 528.65. It was followed by Hero Motoco 6.19 per cent, M&M 6.13 per cent, Dr Reddy 5.87 per cent, Lupin 4.79 per cent, HUL 4.73 per cent, HDFC 4.02 per cent, NTPC 3.97 per cent and ITC 3.40 per cent.
While, Sun Pharmaceutical Industries slumped 9.45 per cent to Rs 514.80 after consolidated net profit fell 14 per cent to Rs 1223 crore on 8 per cent fall in sales to Rs 6825 crore in Q4 March 2017 over Q4 March 2016, it was followed by Tata Steel 3.95 per cent, Infosys 2.69 per cent, ICICI Bank 1.12 per cent, ONGC 1.08 per cent, Reliance 0.83 per cent and TCS 0.68 per cent.  The total turnover during the week on BSE and NSE fell to Rs 17,834.74 crore and Rs 1,35,278.32 crore, respectively, as against last weekend’s level of Rs 20,043.27 crores and Rs 1,39,727.20 crores.

Gold and silver prices drifted lower due to slackened demand from jewellery stockists and traders at higher level.  Marketmen said that a weak trend overseas as the dollar firmed up after upbeat US private sector jobs numbers, drop in demand from local jewellers at the domestic spot market mainly led to the fall in gold prices.  Elsewhere, silver also witnessed sustained selling by stockists and investors coupled with lack of demand from industrial users, closed below the significant Rs 39,000 mark  In worldwide trade, gold saw their highest weekly close since April, with prices up a fourth week in a row, after a reading on US job growth fell short of forecasts for a strong payrolls jump in May and cast some doubt on the pace of gold-negative US interest-rate hikes this year. Gold settled at their best level since April 21 and rose roughly 1 per cent for the week, while silver finished about 1.2 per cent higher for the week.

In the New York Comex trade, gold for August delivery climbed to USD 1,280.20 an ounce compared to last Friday’s June close of USD 1,268.10 and Silver for July contract rose to end at USD 17.525 an ounce from USD 17.323.  On the domestic front, standard gold (99.5 purity) resumed higher at Rs 28,890 per 10 grams from last Friday’s closing level of Rs 28,835 and moved in a range of Rs 28,945 and Rs 28,745 before concluding at Rs 28,770, revealing a modest loss of Rs 65, or 0.23 per cent.  Pure gold (99.9 purity) also commenced positive at Rs 29,040 per 10 grams compared to preceding weekend level of Rs 28,985 and hovered in a range of Rs 29,095 and Rs 28,895 before ending at Rs 28,920, showing a fall of Rs 65, or 0.22 per cent.
Silver ready (.999 fineness) opened higher at Rs 40,340 per kilogram from last Friday’s closing level of Rs 40,235 and moved in a range of Rs 40,630 and Rs 39,860 before closing at Rs 39,920, revealing a fall of Rs 315, or 0.78 pct.

Edible and non-edible oils drops further, while linseed maintains steady trend at the oils & oilseeds wholesale market week under review.  Groundnut oil maintained its downtrend for the fifth straight session owing subdued demand from stockists and retailers amid good arrivals from producing belts.  Refined palmolein declined further owing to reduced retail buying support. Castorseeds bold and castor oil commercial dipped due reduced offtake from shippers and soap industrial units.  Linseed oil failed to sustain the gains and finally managed to held stable in absence of any major buying from paint and allied industries.  In the edible segment, groundnut oil resumed lower and settled at Rs 960 as compared to last Saturday’s closing level of Rs 970, revealing a loss of Rs 10 per 10kg.

Refined palmolein resumed lower at Rs 555 and later declined further to finish at Rs 550 as against previous weekend’s level of Rs 558, showing a loss of Rs 8 per 10kg.  Turning to non-edible section, castorseeds bold commenced lower at Rs 4,765 and dropped further to Rs 4,575 before settling at Rs 4,640 as compared to last weekends’ level to Rs 4,825, showing a sharp loss of Rs 185 per 100kg.  Similarly, castoroil commercial opened lower at Rs 983 and fell further to Rs 948 before ending at Rs 958 as against previous weekends’s level of Rs 995, a fall of Rs 37 per 10kg. Linseed oil prices opened stable at Rs 780 and declined to Rs 730 before recoving to close at its previous weekends’ level of Rs 780 per 10kg.

The rupee ended the week virtually stable at 64.44 against the US dollar after witnessing a bit of roller coaster ride even as equities continued their record- breaking rally. Trading has been thin and confined to extremely narrow range in the absence of any market moving factors. Moreover, currency traders preferred to lighten up their positions ahead of RBI policy review next week. After overcoming early setback in the face of hardening geopolitical jitters and also month-end oil-related dollar demand from importers, the home currency staged a smart rebound toward the tail-end trade. A spectacular record setting rally in domestic equities alongwith continued optimism of fund inflows against the backdrop of improving macro-economic environment largely weighed on rupee trade during the week, a forex dealer said.

Meanwhile, India’s annual economic growth rate unexpectedly slowed to 6.1 percent in the January-March quarter, its lowest in more than two years, while the expansion of eight core sectors declined to 2.5 per cent in April. The rupee resumed higher at 64.48 against last Friday’s closing value of 64.44 at the Interbank Foreign Exchange (forex) market. It later succumbed to heavy selling pressure due to month-end dollar demand and drifted sharply to a low of 64.70. However, the home currency staged a smart rebound towards the tail-end to hit a high of 64.32 before ending the the week on a steady note at 64.44. Foreign funds were net sellers and offloaded a net amount of USD 46.26 million, according to provisional figures
by stock exchanges. In worldwide trade, the dollar collapsed to fresh seven-month lows on Friday after data showed the U.S. economy created fewer jobs than expected last month, which could derail a possible interest rate hike by the Federal Reserve in the second half of this year.

This is the lowest level since the election of Donald Trump last November. The currency had been battered by intense political instability fears as the Trump administration looked increasingly mired in a scandal about senior members’ contact with Russian officials. The dollar index — a measure of the US currency against a basket of six trade-weighted peers dropped sharply to end at 96.61 – the weakest since president Trump’s election. In the meantime, country’s forex reserves fell by USD 547 million to USD 378.8 billion during the week ended 26 May 2017. Reserves touched an all-time high of USD 379.3 billion during the preceding week. The RBI fixed the reference rate for the USD at Rs 64.9906 and Euro at Rs 72.2955 against preceding week’s level of Rs 64.4208 and Rs 72.2673 respectively. In cross-currency trade, the Indian unit gained further ground against the British pound settle higher at 82.85 from last Friday’s level of 82.82 per pound and firmed up against Euro to finish at 72.26 as compared to 72.21 last
weekend. It also recovered against the Japanese Yen to end at 57.78 per 100 yens from 58.05 previously. In the forward market,

In the forward market, premium for dollar remained under immense pressure owing to sustained receivings from exporters. The benchmark six-month forward dollar premium payable in October edged down to 125-126.5 paise from 127-128 paise and the far-forward contract maturing in April 2018 also moved down to 272.5-274.5 paise against 274-275 paise last weekend. The new November month contract and far-forward May-2018, were quoted at 146-147 paise and 295-296 paise, respectively. In global commodity trade, crude prices took a big blow, sliding more than 1 percent on Friday to post their second straight week of losses on hardening worries that U.S. President Donald Trump’s decision to abandon a climate pact
could spark more crude drilling in the United States, worsening a global glut.




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