Indian markets had a stellar run for last week

MUMBAI, Oct 12 (Business Standard): With gains on four of the five trading session, markets had a stellar run for the week with the benchmark indices - Sensex up 3 per cent and the Nifty edged higher by 3.1 per cent for the week. The Sensex and the Nifty decisively closed above the 20,000 and the 6,000 mark respectively.

In the broader markets, the smallcap index gained 2.7 per cent and the midcap index stepped up by 2.4 per cent over the past five trading sessions.

Some of the positives that helped the investor sentiments were a sharp decline in trade deficit for September this year, RBI liquidity enhancing announcements for the banking system and finally a positive outlook from the Infosys management with an upward revision in revenue guidance for the full year. FIIs too took note of these developments and bought into the Indian markets.

Meanwhile, on the macro front, the industrial output -- after accelerating in the previous month -- remained subdued in August, according to data released today by ministry of statistics and programme implementation.

The Index of Industrial Production (IIP) grew by mere 0.6 per cent in August compared to 2 per cent growth in same month last year, dashing hopes of an industrial recovery in the second quarter.

Adding to this, the International Monetary Fund lowered India's growth forecast to 3.75 per cent for this year from 5.7 per cent earlier estimate. Taking note of the sharp revision downwards, Finance Minister P Chidambaram said, "I know that the World Economic Outlook report does not share my optimism, but I may tell you that we do not share their pessimism.''

The Indian currency closed at 61.08 against the dollar on Friday, a two-month high, compared with the previous close of 61.36, on the back of positive sentiments prevailing in the market. Besides that International Finance Corporation (IFC) launched India's first offshore rupee denominated bond issue, which hopes to raise $1 billion, thus helping dollar flows into the country.

On the sectoral front, metal and consumer durables closed in the red, losing 0.1 per cent and 0.6 per cent respectively.

Among the gainers, realty index gained nearly 9 per cent, followed by IT, capital goods, teck, auto and Bankex indices, up 4-6 per cent.

Health care, power and oil & gas indices saw gains of 1.5-2 per cent.

FMCG and PSU indices closed marginally higher by 0.2 per cent each.

From the Sensex pack, Tata Motors jumped 10 per cent and hit a record high during the week. The stock was the top gainer for the week.

The other gainers from the auto space were Maruti Suzuki, Hero MotoCorp, Mahindra & Mahindra and Bajaj Auto which were up 1-2.5 per cent.

IT bellwether, Infosys, gained 8.5 per cent. Since Murthy's return, the stock has gained 36 per cent.

TCS and Wipro too gained 1 per cent and 4.5 per cent respectively.

From the banking space, ICICI Bank, HDFC Bank, HDFC added 1.5-7 per cent.

Among the metals, Jindal Steel and Tata Steel were up 7 per cent each.

Oil & Gas names like ONGC, RIL and GAIL added 1-4 per cent.

FMCG scrips had a mixed fortune with ITC up marginally by 0.5 per cent while HUL slipped 0.7 per cent.

L&T, Sun Pharma, BHEL, Bharti Airtel, Dr Reddys, Tata Power and NTPC were the other notable gainers, with gains between 1-7.5 per cent.

The only names in the red for the week, having lost 2-8 per cent, were Cipla, Sesa Sterlite, Hindalco and Coal India.
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