Weekly review: Market recovers modestly on late buying, BSE Sensex up 21 pts

Markets ended in the green after initial losses on fag-end buying mainly in IT, Refinery, PSU, Capital Goods and Banking counters.

Markets ended in the green after initial losses on fag-end buying mainly in IT, Refinery, PSU, Capital Goods and Banking counters as investor sentiment got a boost from government estimate of 5.5 per cent economic growth this year amid strong global cues.

Strong recovery seen in US and European markets as well as in Asian markets was the main reason behind the market sentiment.

The Finance Minister tabling on Friday the Mid-year Economic Analysis 2014-15 in Parliament which stated that GDP was expected to rise to 5.5 per cent in the current financial year as against 4.7 per cent in the previous fiscal, also helped the markets, said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Sensex opened lower at 27,136.28 and fell further to 26,469.42 on initial heavy selling pressure in view of heavy foreign capital inflows and sharp decline in industrial production in October and zero level inflation in November, completing three days of losses.

However, it recovered later on to 27,497.12 before ending the week at 27,371.84, disclosing a gain of 21.16 points or 0.08 per cent.

While, the CNX 50-share Nifty eased by 3.75 points or 0.05 per cent to end at 8,220.35.

Meanwhile, foreign portfolio investors sold shares worth Rs 4,704.85 crore yesterday, including provisional data on December 19.

“Markets saw major movements during the current week. Clearly, signs of slowdown in global economic growth was the major concern that led to sell-off in the early part of the week,” said Sanjeev Zarbade, Vice President, Private Client Group Research, Kotak Securities.

However, markets bounced back post dovish comments from the US Fed, he added.

Traders said rupee nearing 63-level also weighed heavily on investors.

“However, contraction in CPI and WPI inflation boosted the hope that the Reserve Bank would start lowering interest rates early next year, which aided some recovery,” said Jayant Manglik, President, Retail Distribution, Religare Securities.

Stability in Russian currency was also a boost to global markets which in turn helped local bourses, traders said.

Indian markets bounced back strongly helped by the US markets which ended sharply up after dovish comments from the Fed. 16 scrips out of 30-share sensex ended higher while 14 others finished lower.

Major gainers were BHEL 4.80 pct, HDFC 4.19 pct, ONGC 3.67 pct, Infosys 3.24 pct, Coal India 3.07 pct, Gail 2.79 pct, Hindalco 2.74 pct, TCS 2.17 pct, Wipro 1.87 pct and Axis Bank 1.36 pct while ITC dropped by 6.61 pct, Dr Reddy 5.42 pct, HUL 5.41 pct, Sun Pharma 3.89 pct, SSLT 3.39 pct, SBIN 2.27 pct, M&M 2.74 pct and Bajaj Auto 2.27 pct.

Among the sectoral indices, Power rose by 2.65 IT by 2.56 pct, Teck 2.00 pct, PSU 1.32 pct and CG 1.07 pct while Realty dropped by 5.78 pct, FMCG 5.02 pct, HC 3.66 pct and Auto 1.68 pct.

Small-cap and Mid-cap indices also dropped by 1.32 pct and 1.07 pct respectively due to heavy selling from retail investors.

The total turnover at BSE and NSE was Rs 17,034 crore and 87,041.48 crore respectively during the week as against the last weekend’s level of 15,528.21 crore and 87,203.08 crore.

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