Weekly Wrap: Sensex Jumps From One High To Another; Nifty Flirts With 12,000
Six of the 11 sectoral gauges compiled by the NSE ended in losses, dragged by the Nifty Media Index.
The Sensex hit an all-time high this week, again. But the record run was short-lived as Moody’s Investors Service’s downgrade of India’s credit rating outlook to negative triggered a heavy selloff on Friday.
The 31-share gauge hit a record high of 40,653.74, surpassing its previous peak touched last week. But finally closed the week 0.39 percent higher at 40,323.61.
The Nifty index, on the other hand, had reclaimed the 12,000-mark on Thursday—the psychological level last hit in June. But the benchmark index, too, registered its steepest fall in more than a month on Friday after India’s rating downgrade amid a prolonged slowdown. The NSE Nifty 50 gained 0.15 percent to end the week at 11,908.
Six of the 11 sectoral gauges compiled by the NSE ended in losses, dragged by the Nifty Media Index.
The news of Moody’s lowering India’s outlook not only capped upside but also triggered a sharp decline in the Nifty on Thursday, Ajit Mishra, vice president (research) at Religare Broking Ltd., said in a media statement. “Despite the overall buoyancy, we usually see stocks reacting sharply lower during corrective phase of the index. Thus, we suggest keeping few short positions also.”
Deepak Jasani, head (retail research) at HDFC Securities, said there’s a possibility of further weakness in the Nifty in the coming sessions. “Immediate supports to be watched at 11,823 levels, while 11,955-11,976 band could offer resistance,” Jasani said in a separate statement.
How The Broader Market Performed
The broader market represented by the NSE Nifty 500 Index declined nearly 0.2 percent this week, dragged by Intellect Design Arena Ltd., GE T&D Ltd. and Dish TV India Ltd.
How Asian Currencies Performed
The Indian rupee ended lower this week. The domestic unit depreciated 0.67 percent against the dollar to end the week at 71.33.
Big Talking Points This Week
- India’s outlook cut to negative by Moody’s.
- India’s direct tax collections rise 3 percent in April-October.
- Qatar Air ‘keen to buy’ IndiGo stake to expand in fastest-growing aviation market.
- U.S. says phase-one China deal would include tariff rollback.
- Supreme Court sets 90-day deadline to complete Jaypee Infratech resolution process.
- Easy liquidity pulls down short-term corporate bond yields to multi-year lows.
- Infosys analyst meet: Nandan Nilekani says will ensure all aspects of whistleblower allegations are probed.
- Cabinet approves special fund for stalled affordable and middle-income housing projects.
- New GDP base year to be decided in a few months, says chief statistician of India.
- India services gauge remains in contraction zone in October.
- India won’t waive $13 billion of mobile-phone firms’ dues.
- Burger King’s India unit files for IPO to fund expansion.
- RBI asks NBFCs to maintain liquidity coverage ratio.
- Stocks Rakesh Jhunjhunwala, Dolly Khanna and Ashish Kacholia bought and sold in September quarter.
- RBI clamps down on variable pay of top management at private banks.
- Indian economy in for a couple of ‘nasty years’, warns Fitch chief economist.
- Delhi pollution: Supreme Court orders construction ban, strict action against crop stubble burning.
- India exits China-backed trade deal 15 nations plan to sign.