Weekly Wrap: Sensex, Nifty Halt Three-Week Losing Streak Ahead Of Budget
Indian equity benchmarks ended their three-week losing streak ahead of the Union Budget.
Indian equity benchmarks ended their three-week losing streak ahead of the Union Budget scheduled to be presented next week.
The S&P BSE Sensex closed 0.51 percent higher this week to end at 39,394.64 and the NSE Nifty 50 closed at 11,788.85, up 0.55 percent.
Investors will watch the upcoming Union budget, Hemang Jani of Sharekhan by BNP Paribas said in a statement. “We expect the government to continue its focus on infra development, boosting farm growth, financialisation of savings and tacking the prevailing NPA issue.”
Jani prefers Larsen & Turbo Ltd. and ICICI Lombard General Insurance Company.
Amar Ambani, president and research head at YES Securities, expects the Nifty to inch upwards to 13,000. “At the same time, we believe that 2019 will be a year of consolidation for the broader market,” he said in a statement. “The smart thing to do this year is to not be in a hurry to deploy funds. Be extremely selective, especially with mid caps and invest in a staggered manner.”
Nagaraj Shetti, senior technical and derivative analyst at HDFC Securities, said the Nifty as per weekly time frame chart formed a small positive candle with upper and lower shadow, “This could be considered as a high wave type pattern, which is currently placed at the crucial support of 11,650 levels.”
The short-term trend of Nifty remains range bound. We could expect further weakness in the early part of the next week, but likely to see buying emerging from near the support of 11,700-11,650 again.Nagaraj Shetti, Senior Technical And Derivative Analyst At HDFC Securities
Nine out of 11 sectoral gauges compiled by the NSE ended higher this week, led by the NSE Nifty PSU Bank Index’s 3.89 percent gain. On the flip side, the Nifty IT Index was the top sectoral loser, down 1.56 percent.
How Broader Markets Performed
The broader market index represented by the NSE Nifty 500 Index closed 0.81 percent higher this week, led by gains in Dilip Buildcon Ltd. and Allahabad Bank Ltd.
How Currency Markets Performed
The Indian rupee clocked its best weekly gains in over two months. It appreciated 0.8 percent this week to end at 69.02 against the U.S. dollar. The local legal tender was also the second-best Asian currency performer this week.
Big Talking Points This Week
- Viral Acharya resigns as RBI deputy governor.
- Global trade slumps in April as trade war dragged on.
- Chennai Super Kings doubled investor money In private market in six months
- Apple Design Chief Ive leaving to form independent company.
- RBI panel on MSMEs suggests larger Mudra Loans, scrutiny of credit guarantee schemes.
- Powell's Fed sees lower long-run rate outlook as growth dims.
- Kerala tops Niti Aayog’s health index again, Uttar Pradesh fares worst.
- Bitcoin surpasses $11,000 as memories of popped bubble fade.
- Trump goes to G-20 seeing red far beyond China.
- Supreme Court issues new roster for allocation of cases from July 1.
- Women are on the firing line as automation claims more jobs.
- Autos may see lower inventory In June but no sales pick up.
- U.S. Presidential debate takeaways: Harris soars, Biden stumbles, Buttigieg scores.
Key Events To Watch Next Week
- July 1: Automakers to report sales data for June
- July 1: India Manufacturing PMI data for June
- July 3: Indian Services and Composite PMI for June
- July 4: India’s economic survey
- July 5: Finance Minister Nirmala Sitharaman to present Union Budget for 2019-20