Weekly Wrap: Sensex, Nifty Extend Gains As Earnings Momentum Continues
HDFC AMC settled 59 percent higher at Rs 1,748.90 in its first week of trading.
Indian equity benchmarks rose for the third straight week, supported by earnings momentum while shrugging off escalating global geopolitical risks.
The S&P BSE Sensex Index gained 0.83 percent to 37,869 and the NSE Nifty 50 Index climbed 0.6 percent to 11,429.
Of the 46 Nifty companies that have reported earnings so far, 31 have either met or beaten estimates, while 15 have been below estimates, data compiled by BloombergQuint showed.
It was a good week for the markets led by gains in Reliance Industries Ltd. and public sector banking shares, AK Prabhakar, head of research at IDBI Capital, told BloombergQuint over the phone. “But Nifty is facing major resistance around 11,500 and till that level is not crossed, some profit booking towards 11,250-11,200 is possible.”
Domestic investors infused around Rs 300 crore in the market this week, while foreign investors pumped in around Rs 5,078 crore into debt and equities during the period as on Aug. 09.
Private sector banking shares were the best performers this week. Among sectoral gauges, the NSE Nifty Pharma Index was the lone loser, down 3.8 percent.
Another highlight was the listing of HDFC Asset Management Company Ltd. The asset manager’s shares listed at a premium of 65 percent at Rs 1,815 apiece on the National Stock Exchange Ltd., compared with its issue price of Rs 1,100. The stock settled the week at Rs 1,748, up 58.9 percent from its issue price.
The rupee was the third worst performing currency across Asia this week.
The local unit weakened 0.33 percent to 68.83 per dollar, tracking other emerging market currencies that depreciated against the dollar as tensions between the U.S., Turkey and Russia spurred risk-aversion in markets.
Big Talking Points This Week
- HDFC Bank veteran Paresh Sukthankar quits
- Stock exchanges seek details after Jet Airways deferred earnings
- India’s economy is an elephant that’s starting to run, IMF says
- Ikea expects 60 lakh shoppers a year at its first India store
- All about the U.S. sanctions aimed at Putin's Russia
- U.S. readies to slap duties on $16 billion of Chinese goods
- Dena Bank lending freeze to remain in place till at least December
Major Earnings To Watch Next Week
- Tata Steel
- Grasim
- Sun Pharmaceutical Industries