During the week under review, Sensex gained 259.71 points to 26,128.20 on November 27, while Nifty gained 86.15 points at 7,942.70. (Express photo by Heena Khandelwal)
The BSE Sensex and NSE Nifty kicked off the week on a positive note tracking global clues. The ongoing winter session of the Parliament that started on Nov 26th and hopes of concrete outcome with regard to goods and services tax (GST) kept the market in good moods as well. As a result, benchmark indices gained 1 per cent for the week ended November 27. During the week under review, Sensex gained 259.71 points to 26,128.20 on November 27, while Nifty gained 86.15 points at 7,942.70.
Gaurav Jain, director, Hem Securities, said, “Indian indices registered gains of about 1 per cent in the week gone by aided by short covering due to expiry of derivative contracts of November series. Hopes of likely passing of GST Bill in the current winter session of Parliament and a rally in commodity prices boosted the sentiment of the street.”
In the 50-share index, the share price of Dr Reddy’s Laboratories tanked the most — 7.43 per cent during the week, followed by Maruti Suzuki (down 3.39 per cent), Tata Consultancy Services (down 1.69 per cent) and Bharat Petroleum Corporation Ltd (down 1.52 per cent). On the other hand, Hero MotoCorp, GAIL (India) and Idea Cellular gained 5.86 per cent, 5.73 per cent and 5.56 per cent, respectively.
Barring the BSE Healthcare index (down 0.51 per cent) and BSE FMCG index (down 0.33 per cent), rest all other sectoral indices on the Bombay Stock Exchange ended the week in green. The BSE Realty index and BSE Bankex gained 4.37 per cent and 1.99 per cent during the period.
Jimeet Modi, chief executive officer, SAMCO Securities, said, “The market has moved in a tight range with a mildly bullish bias for the week awaiting the outcome whether the Parliament will function and deliver this time. Confidence is slowly returning and the markets are slowly rising on the back of hopes and expectations. Market is awaiting a big trigger whether that will GST or the US Fed meeting would be anybody’s guess but one thing is sure the market is trading around lower levels and is likely to find bottom at or around these levels soon.”
Foreign institutional investors have still not started to invest in a big way as they remained net sellers during the week in the equity segment. Their net outflow stood at Rs 902.51 crore for the week ended November 27.
Indian rupee depreciated nearly 1 per cent during the week. The currency fell from 66.09 on November 20 to 66.75 on November 27.
During the week, Idea Cellular agreed to purchase Videocon’s spectrum in UP west and Gujarat for Rs 3,310 crore, first of its kind spectrum trade, under the new guidelines giving a strong foot hold to the company in the 4G space in the region.
On the global front, US has recorded Jobless claims of 2,60,000 a record 42 years low paving the way this time for the Fed to increase the interest rate in their scheduled meeting on December 15.
Jayant Manglik, president, retail distribution, Religare Securities, said, “Participants are keeping an eye on several factors on both domestic and global front but clearance of GST bill in the prevailing winter session holds prominence currently. And, with opposition parties coming out in support, it’s likely that this bill will be through soon.”
India’s gross domestic product (GDP) data, Reserve Bank of India (RBI)’s fifth bi-monthly monetary policy decision, global macro economic numbers, domestic auto sales numbers, rupee-dollar movement, trend in commodity prices worldwide and flows from foreign portfolio investors (FPIs) will dictate the trend on the bourses in the week ahead. “Indian benchmarks may witness volatility on account of such major events. Indices are expected to stay upbeat with Nifty may hit 8,100.” said Jain of Hem Securities.
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