Sensex breaks six-day winning streak, logs second weekly gain

By: | Published: April 23, 2016 6:06 AM

The BSE Sensex closed at 25,838.14 points, down 42.2 points and the NSE Nifty ended at 7,899.30 points, lower by12.7 points, on Friday.

The benchmark indices Sensex and Nifty traded flat during the week gaining as much as 0.8% and 0.6% respectively. The BSE Sensex closed at 25,838.14 points, down 42.2 points and the NSE Nifty ended at 7,899.30 points, lower by12.7 points, on Friday.

It has been a mixed week for Asian markets overall, as the Shanghai Composite declined more than 4% and the Taiex fell 1.9%. On the other hand, the Jakarta Composite and the Hang Seng gained between 0.5% and 2%.

Foreign investors turned out to be less enthusiastic buyers of Indian equity in April so far as they bought only $342 million worth equities. Domestic investors were net sellers of Rs 239 crore worth equities.

The Bank Nifty index surged 2.6% with key private banks like ICICI and Axis gaining over 4% and 7% respectively. The surge was in response to the RBI on Thursday trimming down the list of companies whose loans have to be provided against default risk in the March quarter.

Kotak Institutional Equities in its latest report has given both ICICI Bank and Axis Bank a “buy” rating at a target price of Rs 253 and Rs 468, respectively.

BSE Metals index gained as much as 4.7% with key stocks like Tata Steel rallying 5.3% during the week. The stock continued to surge after the UK government announced that it is willing to acquire 25% minority stake in the company’s UK operations.

In a recent report on the Indian steel sector, Credit Suisse said, “We note four positive developments for the sector– the inventory cycle has bottomed out globally and given the extent of destocking, the restock could last more than the usual 6-9 months, the dollar weakness has helped stabilize cost curves, Chinese demand stimulus could lead to a demand uptick in 2H that could further elongate the inventory normalisation and supply discipline. Historical rallies yielding big returns for Tata Steel/JSW have lasted 9-12 months.”

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