Weekly Wrap: Sensex, Nifty Log Best Gains In Nearly Five Months As Earnings Take Centre Stage
The Sensex gained 3.07 percent this week to end at 39,298.38 and the NSE Nifty 50 rallied 3.16 percent at 11,661.85.
India’s equity benchmarks reported their best weekly gains in nearly five months as investors shifted focus on earnings of domestic companies amid mixed global cues.
The S&P BSE Sensex gained 3.07 percent this week to end at 39,298.38 and the NSE Nifty 50 rallied 3.16 percent at 11,661.85.
“In the absence of any major event, global cues and earnings will continue to dictate the market trend,” Ajit Mishra, vice president (research) at Religare Broking. “The under-performance of the banking index is still a concern and will be closely tracked.”
Also, the Nifty might witness some consolidation after the recent surge, Mishra, who prefers index majors and select mid caps for short-term trading, said in an emailed statement.
Globally, investors mull the implications of a partial trade deal reached last week between the U.S. and China, U.K. Prime Minister Boris Johnson seeks parliamentary backing for his Brexit deal and China’s GDP growth slowed, among others.
Amit Shah, technical research analyst at Indiabulls Ventures, said, “The bulls continue to have the upper hand and the (Nifty) index almost makes to our target zone of 11,700, which we have been recommending since 11,150.”
The move above 11,700 will push the momentum further, and the index in that event is likely to test the 12,000-mark on the upside, Shah said in a separate emailed statement. The near-term support is seen at 11,450 and the declines should be utilised to build long positions, he said.
How Sectoral Indices Performed
All the 11 sectoral gauges compiled by the NSE gained during the week, led by the NSE Nifty Auto Index’s 7.8 percent rally.
How Broader Markets Performed
The broader market represented by the NSE Nifty 500 Index rose 3.47 percent this week, led by the gains in New India Assurance Co. Ltd., India Tourism Development Corp. Ltd. and General Insurance Corporation of India.
How Currencies Performed
The rupee was the second-worst Asian currency this week. The domestic unit depreciated 0.2 percent against the U.S. dollar to end at 71.14.
Big Talking Points This Week
- EU and U.K. reach a Brexit deal, but it quickly hits a snag.
- PSU banks had “worst phase” under Manmohan Singh, Raghuram Rajan: Sitharaman.
- You had five years, now stop blaming my government, says Manmohan Singh.
- Trump says U.S.-China reach partial ‘Phase One’ trade deal.
- CPI: Retail inflation rises more than expected to 3.99 percent in September.
Key Earnings Announced This Week
- Hindustan Unilever Ltd.
- Reliance Industries Ltd.
- Wipro Ltd.
- Zee Entertainment Enterprises Ltd.