Weekly Wrap: Sensex, Nifty Resume Gains Amid Polls, Global Slowdown
Indian equity indices resumed their weekly gains after a blip amid ongoing polls in the world’s largest democracy and a slowdown in global growth.
The S&P BSE Sensex gained 0.96 percent to end the week at 39,140.28 and the NSE Nifty 50 Index rose 0.94 percent to close at 11,752.80. The benchmarks also clocked fresh intra-day highs during the period.
“Despite the Nifty’s gains during the truncated week, most Asian markets ended in negative as Japanese manufacturing activity contracted,” said Deepak Jasani, head of retail research at HDFC Securities. “New export orders fell at the fastest pace in almost three years, signalling slow global demand remains a major pressure point,” he said in a statement.
Jimeet Modi, founder and chief executive officer at SAMCO Securities, said markets were expected to remain subdued and under pressure at least till the election season is over. The volatility, however, will continue to remain on the higher side due to “knee-jerk reactions” of the ongoing earnings season, Modi said in a separate statement.
The Nifty 50 is currently in an unchartered territory and touched a new high of 11,856. Charts indicate that previous resistance levels have formed a new support for the Nifty at levels of 11,730 and if markets continue to weaken further, it means that there will be failure to go above the new high attained. Hence, traders must book profits in over-bought counters and not initiate any fresh longs at the current moment.Jimeet Modi, Founder And CEO, SAMCO Securities
How The Broader Market Performed
Seven of the 11 sectoral gauges compiled by the National Stock Exchange advanced during the week, led by a 2.2 percent gain in the NSE Nifty Auto Index. On the other hand, the NSE Nifty PSU Bank Index was the top loser, down 2.7 percent.
How The Rupee Fared
The Indian rupee ended higher against the U.S. dollar for the second straight week. The domestic unit gained 0.10 percent to close at 69.35 against the greenback, becoming the Asia’s second-best currency.
(as of 6:40 p.m. on April 18)
Earnings To Watch Next Week
Big Talking Points This Week
- Jet Airways has no option but to shutter as banks refuse funding.
- L&T-Mindtree Deal: No white knight to the rescue of Mindtree.
- Powell adopts an inflation stance Yellen shunned.
- The world’s most miserable economy has seven-figure inflation.
- History suggests Indian rupee set for post-election hangover.
- Five clues on whether China’s economic upturn has staying power.
- Kim Jong Un tests ‘tactical weapon’ in signal over nuclear talks.
- Cheaper newsprint, election ad blitz to boost margins of print media firms.
- Fire breaks out at Notre-Dame Cathedral in Paris.
- Falling rural consumption to slow down FMCG industry growth, says Nielsen.
- Investing in debt better than buying some of the consumer stocks, says S Naren.
- Foxconn’s Gou runs for Taiwan President, citing message from sea goddess.
- India should beware of Saudi Aramco’s billions.
- New TV tariff rules trigger collapse of English genre.
- Global growth slowdown positive for India, says Cartica’s Gingold.