A trader reacts while speaking on a fixed line telephone as he looks at financial data on computer screens on the trading floor at ETX Capital, a broker of contracts-for-difference, in London, U.K. (Photographer: Luke MacGregor/Bloomberg)  

Weekly Wrap: Sensex Halts Longest Gains In Over A Year As Polls, Earnings Take Focus

Indian equity benchmarks halted their longest weekly gaining streak since January 2018 as polling begins in the world’s largest democracy and India Inc. kick-starts earnings.

The S&P BSE Sensex and the NSE Nifty 50 Index closed nearly 0.2 percent lower this week to end at 38,767.11 and 11,643.45, respectively.

“Indian markets were steady as investors remained hopeful of a decent March quarter earnings and a favorable outcome of the general election,” Sanjeev Zarbade, vice president at PCG Research at Kotak Securities, said in a statement.

With markets rallying in March and April, the room for valuations to move up has reduced. At the same time, risks in the form of higher crude oil prices has increased. Investors should be selective while investing at this level and go for companies that are reporting good earnings, Zarbade said.

“The Nifty witnessed a decent upside bounce today, after showing a lower-level recovery in the last session. The short-term trend is range-bound and this high/low area of 11,750-11,550 levels could be continued in the next week,” according to HDFC Securities.

“After the formation of important doji type candle at the new highs in the previous week, the Nifty not showing any sharp weakness in this week could indicate a strength of near-term uptrend,” Nagaraj Shetti, senior technical and derivative analyst at HDFC Securities, said in a separate statement.

This pattern signals a possibility of more range action or minor down correction, before showing a sharp upside breakout of the recent all-time high of 11,761 levels in the coming weeks, he said.

How Broader Market Performed

The broader market represented by the NSE Nifty 500 Index ended 0.11 percent lower this week, led by a decline in Reliance Communications Ltd. and Century Plyboards India Ltd.

Six out of the 11 sectoral gauges compiled by the National Stock Exchange ended lower this week, led by a 1.9 percent fall in the NSE Nifty Metal Index. On the flip side, the NSE Nifty Auto Index was the top gainer, up 2.5 percent.

Rupee Movement

The Indian rupee halted its two-week losing streak and appreciated 0.07 percent against the U.S. dollar. The rupee was among the best-performing currencies compared to its Asian peers. The local currency ended the week at 69.17 against the greenback.

Big Talking Points This Week

  • India industrial output stagnates in February.
  • CPI inflation rises as food prices increase.
  • Lok Sabha Election Phase 1: 63.69% Turnout in Uttar Pradesh, 53.06% in Bihar, 57.85% in Uttarakhand.
  • IMF cuts India GDP growth forecast to 7.3% for 2019.
  • Rafale Case: Supreme Court allows new evidence to be taken on record.
  • Modi pledges $1.44 trillion on infrastructure in re-election bid.
  • Winners and losers of India’s election campaign manifestos.
  • Auto sales recover in March but...
  • ‘Some’ bidder interest in Jet Airways; deadline extended.
  • Inflows into equity mutual funds snap four-month decline.
  • Banking sector remains the favourite among foreign investors.
  • PNB has finally found a buyer for its old headquarters.
  • Wipro to consider third buyback proposal on April 16.
  • The tiny deals behind Mukesh Ambani's bid to take on Amazon.
  • Adani a step closer to constructing its controversial Australian coal mine.
  • India gets its first gaming unicorn.

Don’t forget:

  • Vijay Kedia’s secret to creating wealth by trading.
  • Rajeev Thakkar explains when it’s the right time to buy a stock.
  • CLSA’s India strategist says Nifty to cross 12,000 in coming months.

Read all the BQ Blue Exclusive articles here.

Earnings Announced This Week

Nifty Earnings To Watch Next Week

  • Wipro Ltd.
  • Tata Steel Ltd.
  • Reliance Industries Ltd.
  • HDFC Bank Ltd.

Also read: All You Need To Know Going Into Fourth-Quarter Earnings Season

Key Events/Data To Watch Next Week

  • April 15: India wholesale price inflation for March YoY
  • April 15: India trade export-import data for March