Weekly Wrap: Sensex, Nifty Log Best Week In Four Months On Corporate Tax Boost
Indian equity indices extended their best week in four months on surprise cuts in corporate tax to revive growth.
Indian equity indices extended gains for the third consecutive week, registering their best week in four months on surprise cuts in corporate tax to revive growth.
The S&P BSE Sensex advanced 2.13 percent this week to end at 38,822.57 and the NSE Nifty 50 rallied 2.11 percent to close at 11,512.40.
“The week which was influenced by one of the largest reforms in the Indian financial system was seen muted as the market is digesting such a huge range which has been recorded once in the last 10 years,” Epic Research’s Chief Executive Officer Mustafa Nadeem said in a statement.
The tax relief is among the government’s measures to revive economic growth, which slumped to a six-year low on the back of lower investments and consumption.
We’ll be entering an earnings season which has been muted for the last few quarters for most of the index components and they would be bringing in a lot of volatility to the market and sectors specifically.Mustafa Nadeem, Chief Executive Officer At Epic Research
Nadeem expects Nifty to march towards 11,700 going forward and 11,950 thereafter. “We believe for now every dip should be utilized but as far as Nifty is able to sustain 11,350 on closing basis, he said.
Seven out of 11 sectoral gauges compiled by the NSE ended lower this week, led by the NSE Nifty PSU Bank Index’s 5.8 percent fall. On the flipside, the NSE Nifty Private Bank Index was the top sectoral gainer.
How The Broader Markets Performed
The broader markets represented by the NSE Nifty 500 Index rose 1.79 percent, led by the rally in TCI Express Ltd., MOIL Ltd. and Century Plyboards India Ltd.
How The Currency Market Performed
The Indian rupee was the second-best emerging market currency this week. The home currency appreciated 0.54 percent this week to end at 70.56.
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Key Events To Watch Next Week
- Sept. 30: Fiscal deficit data for August.
- Sept. 30: Eight infrastructure industries data for August.
- Oct. 1: Automakers to release sales data for September.
- Oct. 1: Markit India Manufacturing PMI for September.
- Oct. 4: Markit India Services PMI and Composite PMI.
- Oct. 4: RBI monetary policy.