Markets weekly: Sensex soars 953 points on monsoon hopes, Nifty reclaims 7,800-mark

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Published: April 14, 2016 3:31:12 PM

The 30-share Sensex recaptured the 25,000 mark by advancing 952.91 points, or 3.86 per cent, to 25,626.75 on April 13 from 24,673.84 on April 8.

BSE Sense, NSE Nifty - market weekly reviewThe 30-share Sensex recaptured the 25,000 mark by advancing 952.91 points, or 3.86 per cent, to 25,626.75 on April 13 from 24,673.84 on April 8.

Hopes of robust monsoon and positive key macro-economic data supported market sentiments this week as domestic benchmark indices BSE Sensex and NSE Nifty surged nearly 4 per cent in the holiday-shortened week. Equity markets are closed on Thursday on account of ‘Ambedkar Jayanti’ and will remain shut on Friday due to ‘Ram Navami’.

The 30-share Sensex recaptured the 25,000 mark by advancing 952.91 points, or 3.86 per cent, to 25,626.75 on April 13 from 24,673.84 on April 8. Similarly, the 50-share Nifty reclaimed 7,800 mark as the index gained 295.25 points, or 3.91 per cent, to settle the week at 7850.45.

All the 30 components in the Sensex ended the week in green with Tata Motors surging the most — 9.77 per cent, it was followed by Maruti Suzuki (up 8.92 per cent), BHEL (up 8.90 per cent), ICICI Bank (up 8.85 per cent) and Mahindra & Mahindra (up 8.07 per cent). The market capitalisation of Sensex companies climbed by over Rs 1.62 lakh crore to Rs 43.44 lakh crore on April 13 from Rs 41.81 lakh crore on April 8.

Jimeet Modi, chief executive officer, SAMCO Securities, said, “Market opened the week in positive territory on hopes of a good monsoon. The big trigger came when Indian Meteorological Department (IMD) officially declared the monsoon to be above normal.”

Firm global cues fuelled by strong data from China and surging oil prices after reports of a deal between Russian and Saudi Arabia to cap the production also supported market sentiments this week.

Sectorwise, the BSE Auto index, BSE Telecom index, BSE Bankex and BSE Power index jumped 7.36 per cent, 4.87 per cent, 4.79 per cent and 4.01 per cent respectively. Other sectoral indices on the BSE also ended the week above the neutral line.

During the week, India Meteorological Department (IMD) forecast the monsoon seasonal rainfall likely to be 106 per cent of the Long Period Average (LPA) with a model error of ± 5 per cent this year. India has had two successive poor monsoons as well as unseasonable rains during Rabi harvest in 2014-15 and 2015-16 as well. It is expected that companies that are linked to the rural economy would perform better in the event of favourable monsoon conditions.

The earnings season, which will kick off with bellwether Infosys announcing results on April 15, will play a key role in how markets behave. Meanwhile, after three months of contraction, IIP grew 2 per cent in February on the back of strong performance by mining and electricity sectors, while retail inflation moderated further in March.

Meanwhile, in its World Economic Outlook, the IMF retained 7.5 per cent expansion forecast for India in 2016 and 2017.

For upcoming trading sessions, Jayant Manglik, president, retail distribution, Religare Securities, said, “We are entering into earning season on strong note, but lot depends upon the results of IT major Infosys now as markets will react to its number on Monday after long weekend. For momentum to continue, it’s essential that Nifty holds above 7,750 else consolidation would again set in.”

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