Benchmark indices BSE Sensex and NSE Nifty gained over a percentage point on account of key legislations and policy initiatives taken by the government for the week ended May 13. However, Dalal Street witnessed some profit-booking on Friday due to disappointing macro-economic data.
Overall, the 30-share index advanced 261 points, or 1.03 per cent, to 25,489.57 on May 13 from 25228.50 on May 6 last week. The 50-share index jumped 81.45 points, or 1.05 per cent to 7,814.90.
Among the Nifty 50 index, Zee Entertainment soared 11.39 per cent, followed by Bosch (8.22 per cent), Axis Bank (6.44 per cent) and Asian Paints (6.21 per cent). On the other hand, Eicher Motors, Tata Motors – DVR and Bharat Heavy Electricals Ltd slid 6.21 per cent, 3.50 per cent and 3.20 per cent, respectively.
Sectorwise, the BSE Bankex, BSE TECk and BSE Capital Goods index jumped 2.70 per cent, 1.71 per cent and 1.61 per cent, respectively, while the BSE Metal index and BSE Oil & Gas index remained top losers of the week by falling 2.21 per cent and 0.72 per cent.
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities said, “The passage of Bankruptcy Law in the Parliament was a big positive. However, the IIP numbers had come in lower than expected whereas the CPI numbers exceeded expectations.”
During the week, the government tweaked the Mauritius treaty to stop abuse of tax treaty by creating a level-playing field among domestic and global players, effective from FY17. The Insolvency and Bankruptcy Code 2015 has become the law and will re-establish the sanctity in the lending and borrowing mechanism in India a prerequisite for sustained growth. Supreme Court struck down TRAI order for call drop penalties on the telecom companies thus giving necessary reprieve to the beleaguered sector.
Foreign institutional investors remained net buyers in the domestic equity markets as they bought shares worth of Rs 595.71 crore in the past five trading session whereas rupee depreciated by 0.26 per cent to 66.76 on May 13 from 66.58 on May 5.
Rohit Gadia, founder and CEO, CapitalVia Global Research, said, “The government decision to tax investment coming from Mauritius in a staggered manner was the major news in focus this week and main reason behind the volatility market has witnessed. The government plan is to bring durable long-term investment from foreign institutional investments (FIIs) in the long-term. As round-tripping of funds would be reduced which involves domestic money being sent to tax havens and finding its way back to India as foreign investment.”
For upcoming trading sessions, Shah said, “Markets will continue to consolidate around the current levels and are waiting for triggers to move. Quarterly results, monsoon indicators and global factors will dictate market sentiment in the near term.”