Markets weekly review: Sensex surges 710 points on GST hopes, Nifty above 8,540

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Updated: July 16, 2016 12:04:43 PM

For the week ended July 15, the 30-share index gained 709.60 points to 27836.50 from 27126.90 on July 8. Likewise, the 50-share index advanced 218.20 points to 8541.40 from 8323.20 during the week under review.

BSE Sensex brexit losses gainIn the 50 share index, Tata Steel, ICICI Bank, Idea Cellular, Hindalco Industries and Maruti Suzuki gained 16.92 per cent, 9.90 per cent, 8.48 per cent, 8.44 per cent and 7.57 per cent, respectively, in the past five trading sessions. (Reuters)

Domestic benchmark indices BSE Sensex and NSE Nifty soared over 2 per cent this week on hopes that GST will get a passage in the monsoon session of the Parliament. For the week ended July 15, the 30-share index gained 709.60 points to 27836.50 from 27126.90 on July 8. Likewise, the 50-share index advanced 218.20 points to 8541.40 from 8323.20 during the week under review.

In the 50 share index, Tata Steel, ICICI Bank, Idea Cellular, Hindalco Industries and Maruti Suzuki gained 16.92 per cent, 9.90 per cent, 8.48 per cent, 8.44 per cent and 7.57 per cent, respectively, in the past five trading sessions. On the other hand, Infosys, Aurobindo Pharma, Tata Power Company, Wipro and Cipla declined 7.55 per cent, 2.56 per cent, 2.05 per cent, 1.09 per cent and 0.95 per cent, respectively.

Among the sectoral indices on BSE, Metal index gained the most — 8.31 per cent, followed by Telecom (up 5.59 per cent), Bankex (5.27 per cent), Auto (up 3.63 per cent) and Capital Goods index (up 2.56 per cent). The BSE IT index and TECk plunged by 3.56 per cent and 1.97 per cent and remained only losers in the BSE sectoral list.

Jimeet Modi, chief executive officer, SAMCO Securities said, “The inflation has started to rise mildly which is a positive sign that economy is leapfrogging towards growth. The government is also looking positive of passing GST in the upcoming monsoon session of the Parliament, which will give further impetus to the bull market in the long term. All eyes will now shift to the floor of the Parliament as the Monsoon session will start from Monday.”

In an important market-related event this week, Quess Corp shares listed at premium of 57 per cent on Tuesday, indicating a massive wave of optimism running in the market. Public offer by Larsen & Toubro Infotech also got subscribed over 10 times during the week.

On the healthy response in the primary markets, Modi said, “Such events attract more and more participants in the capital market which channelises savings into productive assets for faster economic growth of the country.”

Foreign institutional investors remained net buyers in the Indian equity markets as they bought shares worth of Rs 3,235.16 crore during the week. Rupee appreciated by 39 paise to 67.06 on July 15 from 67.45 on July 8, according to the data available with RBI.

In the coming week, stocks markets will eye Reliance Industries result(announced on Friday) and Parliament’s monsoon session. Reliance Industries’ consolidated net profit rose 18 per cent to Rs 7,113 crore for the June quarter against Rs 6,024 crore in the corresponding quarter last year.

Jayant Manglik, president, retail distribution, Religare Securities said, “Beginning of the monsoon session in the Parliament will further add to anxiety as hopes are high over the passage of GST bill. As of now, indications are in the favour of consolidation in index first so we maintain our advice to hold positive yet cautious stance but avoid contrarian trades.”

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