Sensex, Nifty end 1% higher this week; here’s what to expect from markets next week

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August 7, 2020 4:18 PM

The 30-share index Sensex ended at 38,041, up 15 points, or 0.04 per cent while the broader Nifty 50 settled above 11,200 levels at 11,214, up 14 points or 0.12 per cent.

sensex, niftyThe US is expected to finalize the second round of stimulus package in the coming week to fight economic fallout from the COVID-19 pandemic

BSE Sensex managed to settle above the crucial 38,000 and Nifty reclaimed the psychological level of 11,200 in Friday’s volatile trade. Index heavyweights such as Reliance Industries (RIL), Asian paints, Bajaj Finance, Maruti Suzuki and HDFC Bank were the top index contributors today. The 30-share index Sensex ended at 38,041, up 15 points, or 0.04 per cent while the broader Nifty 50 settled above 11,200 levels at 11,214, up 14 points or 0.12 per cent. With today’s gains, benchmark indices gained around 1% this week. “Heightened Chinese aggression could have a negative impact on our markets in the near term. However, there could be a silver lining for Indian markets in the long term, with global investors hesitating to invest in Chinese companies. Earnings specific action will likely continue next week, with indices searching for direction in the near term. Accumulation continues the best strategy,” said Vinod Nair, Head of Research at Geojit Financial Services.

Asian Paints top Sensex gainer: Among top Sensex gainers were Asian Paints (up 4.5 per cent), Bajaj Finance (up 3.6%), IndusInd Bank (up 2.9%), Bajaj Finserv (up 2.8%), Maruti Suzuki (up 1.8%) and Bharti Airtel (0.92%). On the flip side, Titan Company was the top laggard on the index, followed by HCL Tech, Infosys, M&M, Sun Pharma, L&T, UltraTech Cement.

Nifty PSU Bank index jumps 1%: Trend among sectoral indices was positive, with seven out of 11 constituents ending in the green. Nifty PSU Bank index and Nifty Metal index were the top gainers, up 0.99 per cent and 0.85 per cent. On the other hand, Nifty IT index slipped over 1 per cent in today’s trade.

Mid-, small caps outperformed: The broader market outperformed the equity benchmarks. S&P BSE MidCap index jumped over 200 points or 1.4 per cent to end at 14,219 while the S&P BSE SmallCap index ended the session at 13,669, up 106 points, or 0.78 per cent. “Todays Trade was characterised by robust activity in select high-quality Midcaps as well as Smallcaps as a lower interest rate cycle benefits many such stocks,” said S Ranganathan, Head of Research at LKP Securities.

Expectations for the next week: “The US is expected to finalize a second round of stimulus package in the coming week for the American people to fight economic fallout from the COVID-19 pandemic. This move is expected to lift the overall sentiment of the US market and in turn markets across the globe. Accordingly, domestic markets are likely to mimic on stimulus clues and sentiments are likely to be positive,” said Jimeet Modi, Founder & CEO Samco Group

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