Weekly Wrap: Top Court’s Telecom Order, Infosys’ Whistleblower Woes Weigh On Sensex
Indian equity benchmarks registered weekly losses, halting their two-week gaining streak.
Indian equity benchmarks registered weekly losses, halting their two-week gaining streak.
That comes after a surprise whistleblower complaint alleged “unethical practices” by top management of Infosys Ltd. and the Supreme Court’s ruling dealt a crippling blow to telecom operators. The Bharatiya Janata Party-led government losing ground in Maharashtra and Haryana state assembly elections further added to the market’s woes.
The S&P BSE Sensex closed 0.6 percent lower this week at 39,058 and the NSE Nifty 50 ended 0.67 percent at 11,583.
“The week started on a gloomy note as the whistleblower letter on Infosys surprised the street,” Jimeet Modi, founder and chief executive officer of Samco Securities Ltd. said in a statement, adding that the Supreme Court’s judgement on India’s telecom operators added to the woes.
“Certain results can surprise bourses which will keep markets buoyant next week,” he said.
Investors should pick stocks with a basket approach as there is a lot of uncertainty right at present. Metals and mining, pharmaceuticals, agriculture, infrastructure are some beaten down sectors which should be considered from a stock picking perspective.
The markets will remain closed on Monday on account of Diwali. On Sunday, markets will be open for an hour for “mahurat trading”.
Nine out of the 11 sectoral gauges compiled by NSE ended higher this week, led by the NSE Nifty IT Index’s 3.3 percent gain. On the flip side, the NSE Nifty Metal Index was the top sectoral loser, down 1.84 percent.
How Broader Markets Performed
The broader market represented by the NSE Nifty 500 Index fell 0.51 percent this week, led by the declines in Vodafone Idea Ltd., Dish TV Ltd. and Dishman Carbogen Amcis Ltd.
How Currencies Performed
The Indian rupee was the fourth-best Asian performing currency this week. The home currency appreciated 0.37 percent against the U.S. dollar to end at 70.88.
Key Earnings To Watch Next Week
Key Events To Watch Next Week
- Oct. 31: Eight Infrastructure Industries data for September
- Oct. 31: Fiscal deficit data for September
- Nov. 1: Markit India Manufacturing PMI
- Nov. 1: October auto sales data.