Weekly Wrap: Sensex, Nifty Rebound On Optimism Over U.S.-China Trade Talks
India’s equity indices gained on hopes of a breakthrough in the trade deal between the U.S. and China.
India’s equity indices rebounded this week tracking global peers on growing hopes that the U.S. and China can negotiate a trade truce as high-level talks progress into a second day.
The S&P BSE Sensex gained 1.2 percent this week to end at 38,127.08 and the NSE Nifty 50 rallied 1.17 percent at 11,305.05.
The markets gained as investors expect a breakthrough in the trade deal between the world’s two largest economies and the government measures to revive credit growth before the festive season, according to Kotak Securities.
While the trade deal between the U.S. and China could lift sentiments, it could also have negative implications in terms of higher crude and commodity prices, Sanjeev Zarbade, analyst at the brokerage, said.
“The markets were also cautious about the stress in the financial sector and likely weak September-quarter earnings season,” Zarbade said in an emailed statement. “The street has built in the effect of slowdown in earnings but if actual numbers turn out to be worse, then markets could slip to lower levels and vice versa.”
LKP Securities said the Nifty managed to close within its rising channel pattern on weekly chart hinting the overall structure still looks positive.
“The immediate hurdle for Nifty is coming near 11,350-11,400. Any decisive break above 11,400 can result in quick move towards 11,500-116,00 and support for index is coming near 11,220-11,080,” Rohit Singre, senior technical analyst at LKP Securities, said in a separate email.
Six of the 11 sectoral gauges compiled by the National Stock Exchange ended higher this week, led by the NSE Nifty Metal Index’s 1.74 percent gain. On the other hand, the NSE Nifty Realty Index was the top loser, down 0.34 percent.
How The Broader Market Performed
The broader market represented by the NSE Nifty 500 Index closed 0.77 percent higher, led by the rally in Adani Green Energy Ltd., Bandhan Bank Ltd. and Vodafone Idea Ltd.
How Currencies Performed
The Indian rupee was the second-worst performer this week among Asian peers. The domestic unit depreciated 0.2 percent this week to close at 71.01 against the U.S. dollar.
Big Talking Points This Week
- Dearness allowance for government employees hiked to 17 percent from 12 percent.
- What to watch to see if world economy is heading into recession.
- SBI cuts lending, savings deposit rates.
- Obesity is weighing on education, productivity and the economy.
- RBI rejects Indiabulls-Lakshmi Vilas Bank merger plan.
- Passenger vehicle sales decline for the eleventh straight month.
- Aramco’s long-delayed mega-IPO is finally set to hit the market.
- BQ Survey | No resurgence in demand for consumer goods in second quarter.
- Hong Kong is sinking into a recession with no recovery in sight,
- Moody’s sees India’s growth slowdown as ‘Partly Long Lasting’.
Results Announced This Week
Earnings To Watch Next Week
Key Events To Watch Next Week
- Oct. 14: India wholesale inflation data for September.
- Oct. 14: India CPI inflation data for September.
- Oct. 15: India trade balance data for September.