Share market wrap: Sensex, Nifty log minimal weekly gains amid festivity; macro-data, elections to steer ahead

By: | Published: November 10, 2018 11:16 AM

Sensex and Nifty recorded minimal gains during the truncated week ended Friday amid the festive season and volatility in the global markets.

sensexOn Wednesday (November 7), the stock market kicked off the new year Samvat 2075 on a good note, with the Sensex climbing 246 points or 0.7% to end the Muhurat-trade session at 35,237.68 points.

Sensex and Nifty recorded minimal gains during the truncated week ended Friday amid the festive season and volatility in the global markets. However, easing crude prices provided some relief to the rupee. On Friday, benchmark Brent crude oil fell below $70 a barrel for the first time since early April. The week also marked the end of the Samvat 2074. While Sensex returned 7% and the Nifty only 4% gains in Samvat 2074, IT stocks gave excellent returns with shares of Tech Mahindra, Infosys, TCS returning up to 52% since last Diwali.

“We have had many global events like US midterm state elections. We also had speculation around Brexit. Also, Fed reserve policy and comments which stated no change as final hike may come in December,” Pritam Deuskar, Fund Manager, Bonanza portfolio told FE Online. “Domestically we had NBFC liquidity issue on the rise. Average funding by commercial papers to NBFC had been about 30-35% and most of these papers may not get rollovers. Cash becomes survivor but can not be used for growth in a full-fledged manner by NBFCs,” Deuskar said.

On Wednesday (November 7), the stock market kicked off the new year Samvat 2075 on a good note, with the Sensex climbing 246 points or 0.7% to end the Muhurat-trade session at 35,237.68 points. The Nifty rose 68 points or 0.65% to close at 10,598. Notably, the headline indices posted their best Muhurat-day trading gains in 10 years with rise in most automobile, consumer goods, IT and capital goods stocks. The Indian stock market and currency markets were closed on Thursday (November 8) on the occasion of Diwali Balipratipada.

What to expect next week:

In the week ahead, domestic inflation data, along with crude oil price movement and outcome of the state elections, will impact the sentiment of the stock markets, said market observers. Consumer Price Index (CPI) data for October and Index of Industrial Production (IIP) data for September will be released on Monday (November 12), and October wholesale price inflation (WPI) data on Wednesday (November 14).

“Crude cool off may continue till 60-65 $ per barrel and may get stabilised over there. Chances of dollar move above 75 are also seeming less now for next 2-3 weeks,” added Pritam Deuskar.

At the fag-end of the July-September earnings season, Auropharma, Britannia, Coal India, Dredging Corporation, Godrej Industries,OIL, Engineers India, Sun Pharma, DCM, Hindustan Copper, NCC, Ashok Leyland, Gati, Deepak Fertilisers, Grasim, Rain Industries, M&M, Motherson Sumi Systems, Apollo Hospital and Page Industries are among the companies which will come out with their quarterly corporate earnings next

Also read: Petrol, diesel prices cut for 20th straight day, petrol at Rs 80.90 in Chennai; check rates in your city

Stock picks for next week:

Among stock picks for next week, Mustafa Nadeem, CEO, Epic Research has suggested Rural Electrification Corporation (RECLTD), saying the stock outperformed well with good volumes and closed near day’s high. “It has given a breakout of trend-line on the daily chart on the closing basis. It also gave closing above the 200 EMA on the daily chart. We recommend buying from the current level for the target of 128 with the stop loss of 120,” said Nadeem.

Other stocks include Hindustan Petroleum (recommend “buy” from current level for the target of 250 with the stop loss of 235) and SRF Limited (recommend “sell” from the current level for the target of 2,050 with the stop loss of 2,100).

Key takeaways this week:

Weekly gains: The Sensex rose 147 points or 0.4% to close the week at 35,158.55 points. The Nifty 50 of the National Stock Exchange was up 32 points or 0.3% to end at 10,585.20 points week-on-week.

Top weekly Sensex gainers: Yes Bank (11.83%), Tata Motors (9.31%), Maruti Suzuki (8.29%), Tata Motors – DVR (7.44%) and Asian Paints (6.65%)

Top weekly Nifty 50 gainers: Yes Bank (11.69%), Tata Motors (8.80%), Maruti Suzuki (8.52%), Asian Paints (6.39%) and UPL (6.34%).

FII/DII activity: Provisional data from the stock exchanges showed that foreign institutional investors bought stocks worth Rs 157.8 crore between November 5-9, while domestic institutional investors purchased stocks worth Rs 813.42 crore.

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