Weekly Wrap: Rupee, Oil Relief Help Sensex, Nifty Rebound From Worst Weekly Rout In Over Five Years
Indian equity benchmarks reversed weekly losses, thanks to falling Brent crude prices and the strengthening rupee.
The benchmark indices snapped their longest weekly losing streak with just Friday's rally. The S&P BSE Sensex Index gained 1.04 percent to end at 34,773.58 and the NSE Nifty 50 Index ended at 10,472.50.
The 50-stock index was driven by the rally in Hindustan Petroleum Corporation Ltd.'s 32.3 percent rally—owing to a decline in oil prices.
The markets are expected to be volatile till December, G Chokkalingam, founder and managing director at Equinomics Research & Advisory, told BloombergQuint in an interaction. “We believe that there's room for more crisis in the macro sector. The market value, however, is not expected to fall sharply from the current levels.”
"The support level of 10,200 for Nifty has worked well," according to IIFL's Senior Technical Analyst Hadrien Mendonca. "10,750 could be the next level to watch. If the markets are able to cover last week's gap down we can even expect about 10,840 levels," Mendonca told BloombergQuint over the phone.
Eight out of 11 sectoral gauges compiled by National Stock Exchange advanced, led by the NSE Nifty Media Index. On the flipside, NSE Nifty IT Index was the top sectoral loser after the rupee erased its weekly losses on Friday that sparked a selloff in the tech shares.
Domestic investors infused around Rs 8,567 crore in the market this week, while foreign investors pulled out over Rs 13,000 crore.
The NSE Nifty 500 Index gained 1.7 percent. The 500-share gauge also snapped its longest weekly losing streak in over five years.
Rupee Reverses Weekly Loses
The Indian rupee reversed its weekly losses driven by the government’s move to implement some import curbs and the recent drop in crude oil prices. The local unit was the fourth best-performing currency in Asia.
Big Talking Points This Week
- What foreign investors bought and sold in September.
- As the markets are in turmoil, here’s what brokerages predict.
- IL&FS crisis spurs biggest monthly outflow from liquid funds in a decade.
- The stocks that surprised and disappointed analysts the most.
- Banks unlikely to take a hit from IL&FS loans in September quarter.
- SBI to step up portfolio purchases from NBFCs amid a strain across the sector.
- More banks may buy assets from NBFCs.
- Bandhan Bank loses most expensive tag to AU Small Finance Bank.
- Two-wheeler dealers brace for subdued festive sales as insurance, higher prices hurt.
- InterGlobe Aviation loses half of its market cap second time in three year.
- This battery maker has beaten the rout.
Major Earnings Announced This Week
Earnings To Watch Next Week
Also Watch Out For Next Week
- Wholesale Price Inflation data for September to be released on Oct. 15
- Trade Balance, export and import data for September to be released on Oct. 15.