The bourses climbed up, gaining more than 3% during the week, posting its biggest weekly gain in four months. The Sensex closed at 23,709.15 points on Friday...
The bourses climbed up, gaining more than 3% during the week, posting its biggest weekly gain in four months. The Sensex closed at 23,709.15 points on Friday, up 59.93 points or 0.25%, while the Nifty closed at 7,210.75 points, gaining 19 points or 0.26%.
Most sectors on the BSE index such as the BSE Bankex, Auto, Oil & Gas, Metals and Capital Goods performed well, gaining between 2.6% and 8.5% during the week.
The banking sector, which has been witnessing a sharp decline consistently over increasing NPAs, loan defaults and asset quality deterioration since the beginning of the calendar year, moved up nearly 2.6% during the week.
The rally was led by public sector lender State Bank of India (SBI), Bank of Baroda and Federal Bank. Credit Suisse said in a note to investors, “While PSU banks have fallen 35-60% over the past six months and a nominal price to book is at 0.3-0.6 times, we continue to remain negative on weak profitability, high level of problem assets and dilution risk.”
Twelve of the Sensex stocks including Maruti Suzuki, BHEL, Coal India and Axis Bank ended up in the red, falling between 1% and 2%. Stocks like Fortis, Sintex, United Spirits and Punjab National Bank outperfomed others gaining between 5% and 11%; Unitech, Hindustan Petroleum and Godrej Properties were the worst performers, falling between 3% and 6% on Friday.
Foreign portfolio investors (FPIs) were net sellers during the week, selling close to $384 million worth of equities. Domestic investors bought in close to Rs 3,753 crore worth of equities.
Since the beginning of 2016, FPIs offloaded $2.5 billion worth of equities, Bloomberg data showed. The Indian rupee closed at 68.46 against the US dollar at the end of the week.