Benchmark indices BSE Sensex and NSE Nifty surged 435 points and 141.10 points to 24,870.69 and 7,563.55, respectively.
Domestic equity markets gained nearly 2 per cent in the week gone by and also snapped three-week losing spree on the back of factors such as global cues, short coverings and rebound in crude oil prices. Benchmark indices BSE Sensex and NSE Nifty surged 435 points and 141.10 points to 24,870.69 and 7,563.55, respectively.
This week, Sun Pharma (up 11.25 per cent), Power Grid (up 11.08 per cent), Vedanta (up 10.97 per cent), YES Bank (up 9.50 per cent) and Cairn India (up 8.20 per cent) remained among top gainers in the Nifty50 pack. Bharat Heavy Electricals (Bhel) and Adani Ports, which dropped by 6.04 per cent and 4.94 per cent during the week, stood among major losers.
Barring the BSE Capital Goods index (down 1.41 per cent) and BSE Bankex (down 0.12 per cent), rest all other sectoral indices ended the week in green. The BSE Healthcare index surged the most — 4.89 per cent, followed by BSE Consumer Durables index (up 3.58 per cent), BSE Metal index (up 3.49 per cent), BSE Power index (up 3.31 per cent) and BSE IT index (up 2.74 per cent).
Gaurav Jain, director, Hem Securities, said, “Expectation of stimulus by European Central Bank (ECB), US Federal Reserve keeping the interest rates unchanged in its meet, Bank of Japan negative interest rate policy, positive global cues, short covering on account of expiry of derivative contracts, rebound in crude oil prices, mixed bag of quarterly earnings and appreciating rupee supported domestic equity markets in the truncated week ended January 29.” Indian equity markets were closed on January 26th on account of Republic Day.
Indian rupee fell 0.18 per cent to 67.88 against the dollar for the week ended January 29 from 67.75 on January 22. Meanwhile, it touched a low of 68.08 on January 28.
During the week, TRAI recommended base price of Rs 11,400 crore for 700 MHz, the most efficient spectrum band which is nearly 4 times costlier than the 1,800 MHz bands which were auctioned last year, potentially threatening the health of telecom companies which are already over burdened by huge debt. The BSE Telecom index fell 2.32 per cent during the week ended January 29.
Jimeet Modi, CEO, SAMCO Securities, said “This kind of telecom policy does not augur well for the long term shareholders.”
In the past four trading sessions foreign institutional investors sold shares worth Rs 1163.72 crore (net) in the equity markets.
For the upcoming trading sessions, Reserve Bank of India (RBI) sixth bi-monthly monetary policy on Feb 2, macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), movement of rupee against the dollar, crude oil prices, auto sales numbers and third quarterly earnings of companies like Century Textile, Tech Mahindra, DLF, Indian Oil, Tata Steel, Eicher Motor, Lupin, Jet Airways, Arvind mills will dictate market trends in near term.
Jayant Manglik, president, retail distribution, Religare Securities, said, “It’s indeed a positive sign that Nifty crossed its crucial hurdle of 7,550 on Friday but it should sustain now for this recovery to extend further. Our only concern is the underperformance of the banking sectors and its alignment would strengthen the trend otherwise selling may resume again. Considering all, we reiterate our view to maintain stock specific view but keep the number of trading positions in check.”