Weekly Wrap: Sensex, Nifty Extend Gains For Sixth Week Ahead Of Elections
Indian equity benchmarks ended higher for the sixth straight week to close at a fresh 2019 high.
Indian equity benchmarks ended higher for the sixth straight week. The indices also clocked their longest stretch of weekly gains since September 2018 amid strong foreign fund inflows.
The S&P BSE Sensex and the NSE Nifty 50 Index gained 1.33 percent and 1.46 percent, respectively, to end the week at 38,672 and 11,621. Both the indices hit a fresh high this year.
The 31-share index rallied almost 8 percent in March as investors expect formation of a stable government after the 2019 general election, according to Hemang Jani, head of advisory at Sharekhan by BNP Paribas.
The buying has been mainly led by foreign institutional investors who have pumped around Rs 45,000 crore into the domestic market. We believe that any rate cuts in developed markets such as the U.S. and Europe may result in steady inflows for emerging markets.Hemang Jani, Head Of Advisory, Sharekhan by BNP Paribas
Jani, however, said the upcoming general election will keep the domestic market volatile in the short term. “The earnings growth and a revival in private capex remain crucial for further market upside over the longer term,” he said in a statement.
“The Nifty formed a dragonfly doji candlestick pattern today as per its daily time frame chart, at the new swing high of 11,630 level,” Nagaraj Shetti, senior technical and derivative analyst at HDFC Securities, said in a separate statement.
Technically, this pattern could signal an indecision among market participants at the highs and is likely to form a near-term reversal.Nagaraj Shetti, Senior Technical And Derivative Analyst, HDFC Securities
How The Broader Market Performed
The broader market represented by the NSE Nifty 500 Index ended 1.72 percent higher this week, led by a rally in Jet Airways (India) Ltd. and IndoStar Capital Finance Ltd.
Ten of the 11 sectoral gauges compiled by the NSE advanced during the week, led by a 6.9 percent gain in the NSE Nifty PSU Bank Index. On the flip side, the NSE Nifty Auto Index was the only loser, down 0.15 percent.
How The Rupee Fared
The Indian rupee ended lower after rallying for six straight weeks. The local currency depreciated 0.3 percent this week to end at 69.16 against the U.S. dollar
Big Talking Points This Week
- India’s fiscal deficit widens to 134.2% of target in February.
- India set to borrow Rs 4.42 lakh crore in first half of FY20.
- Scramble to meet fiscal deficit caps volatile year for government finances.
- PNB to sell shares in PNB Housing Finance to General Atlantic, Varde Partners.
- NSE-SGX Arbitration: Bombay High Court grants time till Dec. 31, 2020 for final order.
- NCLAT denies stay on ArcelorMittal’s takeover of Essar Steel.
- SEBI defers implementation of amended norms for royalty payment.
- Tata Group, GIC-led consortium to invest Rs 8,000 crore in GMR’s airports business.
- Raghuram Rajan raises doubts about India growing at 7%.
- U.S. drug regulator’s inspections in India spike.
- Mindtree calls off share buyback plan.
- Rupee rally: Fickle gains or supportive fundamentals?
- Congress’ Rahul Gandhi promises minimum income of Rs 12,000 a month for India’s poorest.
- Jet Airways: Naresh Goyal steps down, lenders extend lifeline.
Don’t Forget:
- Modi government’s performance ‘below average’ on top-30 voter priorities, survey finds.
- BigBasket, India’s largest online Grocer, is now a unicorn.
- Modi says satellite destruction shows India is now a ‘space power’.
Key Events To Watch Next Week
- April 1-2: Automakers to report their monthly sales performance for March.
- April 1: Eight Infrastructure Industries For February.
- April 2: India Manufacturing PMI For March.
- April 4: India Services and Composite PMI for March.
- April 4: RBI Monetary Policy Decision. Analysts tracked by Bloomberg expects repo rate cut by 25 basis points.