We had mentioned in last week’s closing report that Nifty, Sensex may go sideways. The market opened on a positive note on Monday, with the rally continuing on Wednesday after the off on Tuesday; the rally however didn’t continue on Thursday. Overall, for the whole week, the major indices closed with marginal gains. The trends of the major indices in the course of the week’s trading are given in the table below:
Positive domestic cues, coupled with a strong rupee and healthy buying in capital goods and consumer durables sectors, gave a fillip to the Indian equity markets during the mid-afternoon trade session on Monday. Both the key Indian indices touched new 52-week high levels during the intra-day trade.
Healthy macro-economic data -- the Nikkei India Manufacturing Purchasing Managers' Index (PMI), which showed that India's manufacturing activity rose to 52.5 in March from 50.7 in February -- aided the upward trajectory of the key Indian indices. Besides, investors' sentiments were buoyed by the passage of the Goods and Services Tax Bill 2017 -- a major tax reform -- and Finance Minister Arun Jaitley's pegging India's GDP growth at 7.7% in 2018.
The Indian markets were closed on Tuesday on the occasion of Ram Navami.
On Wednesday, the Nifty ended 0.30% higher at 9,265.15. Earlier in the day the index hit 9273.9, its highest ever. Indian shares climbed with key benchmarks registering new record high as foreign funds continue to ramp up their investments in local equities. The S&P BSE Sensex gained 0.2% to 29,974.24 – a record closing for the 30-share index. Intraday, the benchmark crossed the 30,000 mark for the first time since March 2015. Meanwhile, the NSE’s Nifty 50 index rose 0.3% to 9,265, also a record close for the index. The 50-share index made an intraday high of 9,273. All the sectoral indices, barring the technology index, advanced on the BSE. The market breadth was dominated by the bulls, with three stocks advancing to every one stock that declined on the NSE. In the sectoral landscape, realty stocks surged the most, sending the S&P BSE Realty index 4% higher, at 1671.21. The rally was fuelled by rise in shares of Sobha, Godrej Properties and Unitech. The domestic equity market continued its winning momentum for a second straight trading session of FY18 as benchmark indices hit fresh highs, fuelled by heavy buying in blue chips such as Reliance Industries, Maruti Suzuki and L&T.
The S&P BSE Sensex closed the session 47 points lower, at 29,927, with ITC, ICICI Bank and SBI contributing most to the fall. The headline index, which opened at 29,946 against the previous day’s close of 29,974, hit an intraday high and low of 29,954 and 29,817, respectively.
In the midcap space, the S&P BSE Midcap index closed 0.15% higher, at 14,276, with Jindal Steel, Concor and M&M Finance being the major contributors in the surge in the index. The broader Nifty50 of the National Stock Exchange (NSE) ended at 9,261, down 3.20 points.
Benchmark indices ended the day on a lower note, but not before staging a recovery from the day’s low after the RBI’s policy announcement. The Street had factored in the central bank’s decision. A rally in real estate stocks could have helped in the recovery.
The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.25% on Thursday, forecast robust 7.4% growth in 2017-18 aided by waning effects of demonetisation, although inflation risks remain in the medium term. The RBI hinted at a looming inflation threat over the next 6-12 months, obliquely leaving the door ajar for an interest rate hike in 2017-18. For 2017-18, inflation is projected to an average 4.5% in the first half and 5% in the second half. “Underlying inflation pressures persist, especially in the prices of services. Input cost pressures are gradually bringing back pricing power to enterprises as demand conditions improve,” the central bank said flagging weak monsoon, expected rise in government employees’ allowances and goods and services tax (GST) as the primary factors that could knock up prices in the short-term.
On Friday, the Indian Equity Benchmarks fell sharply, with the Sensex falling 220.73 points, closing at 29,706.61, and Nifty closing slightly below the 9,200 mark, at 9,198.30, after the US military launched cruise missiles against a Syrian airfield. The market however recovered some losses during the noon trade on clearance to important GST bills in Rajya Sabha.
Markets across the globe came under pressure after the US military launched cruise missile strikes against a Syrian airbase controlled by President Bashar al-Assad's forces in response to a chemical attack in a rebel-held area.
Asian equities ended mixed but European markets like France's CAC and Germany's DAX were trading lower by 0.1-0.5%. However, the rupee strengthened against the US dollar, 28 paise from previous close, ending at 64.23.
Reliance Industries, ending 2.31% lower because of profit booking following the TRAI order to Jio to withdraw its Summer Surprise Offer, was the biggest contributor to the Sensex fall. Shares of Idea and Bharti Airtel rose by 1.04% and 0.89% respectively after the announcement. Avenue Supermarts gained 14.22% on NSE, closing at Rs758.90 after the credit rating agency CRISIL upgraded its rating on the long-term bank facilities and non-convertible debentures of the company to ‘CRISIL AA/Stable’ from ‘CRISIL AA-/Positive’.
In the Sector space, Pharma sector fell the most, by 1.35%, with Sun Pharma, Lupin and Dr Reddy’s contributing most to the fall, falling by 3.04%, 2.61% and 2.32% respectively. Auto- 2 & 3 wheelers sector rose the most, by 0.82%, the major contributors being TVS Motor (4.18%) and Scooters India (3.83%).
The BSE market breadth was bearish -- with 1,660 declines and 1,250 advances. On NSE, there were 1,042 declines, 648 advances and 72 unchanged.