A bronze bull statue stands at the entrance to the Bombay Stock Exchange building. (Photographer: Dhiraj Singh/Bloomberg)

Weekly Wrap: Nifty Gains For Third Straight Week On Low Oil Prices, Earnings

Indian equity benchmarks rose for the third week in a row after oil continued its slide while corporate earnings at the top 50 companies mostly matched or outperformed consensus estimates in September-ended quarter.

The S&P BSE Sensex rose 0.85 percent and the NSE Nifty 50 Index climbed 0.92 percent. Brent crude declined for the sixth week in a row, moving deeper into bearish territory and eased investor concerns over India’s widening current-account deficit.

Oil did the magic for markets this week, but many stable stocks like Page Industries Ltd. slumped over 15 percent, AK Prabhakar, head of research at IDBI Capital Market, told BloombergQuint over the phone.

As long as 10,430 holds for Nifty some more rally can be expected but upside will be capped as the election season is on, Prabhakar said, while adding that the current rally should be used as an opportunity to exit.

Weekly Wrap: Nifty Gains For Third Straight Week On Low Oil Prices, Earnings

Bharti Airtel Ltd. was the top Nifty gainer after it rose 11 percent—its biggest single-week gain since November 2017, when it rose 11.53 percent.

On the flipside, Yes Bank Ltd. resumed its decline after two weeks of gains, following the churn in its top management.

The lender’s Chairman Ashok Chawla resigned with immediate effect on Wednesday. A day later, former State Bank of India chairman Om Prakash Bhatt stepped down from the panel set up to search for a new chief executive officer for the bank.

Shares of financials and FMCG companies outperformed while those of pharma and metal firms underperformed. The Nifty PSU Bank Index was the top sectoral gainer, up 2.5 percent, while the Nifty Pharma Index declined 3.55 percent.

The rupee rose 0.8 percent, or 57 paise, to 71.93 per dollar making it the best performing Asian currency this week as falling oil prices eased concerns about the widening current account deficit and reaffirmed that inflation, too, will remain in control.

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