Global cues, macro data lift equity indices despite rate hike

Global cues, macro data lift equity indices despite rate hike
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Mumbai: Broadly positive global cues, along with healthy macro-economic data and better-than-expected quarterly earnings, lifted the key Indian equity indices during the week ended Friday.

Analysts pointed out that key macro data of Nikkei India Services Business Activity Index, which showed an exponential rise along with predictions of a revival in monsoon and healthy automobile sales, aided both S&P BSE Sensex and NSE Nifty50 to maintain their upward trajectory.

However, the weekly gains were limited as investor sentiments got eroded after the Reserve Bank of India (RBI) hiked its key lending rates.

On a weekly basis, the BSE Sensex closed at 37,556.16 points, up 219.31 points or 0.59 per cent from the previous close.

The wider Nifty50 on the National Stock Exchange (NSE) settled at 11,360.80 points, higher 82.45 points or 0.73 per cent from its previous week’s close.

Market breadth was positive in all the five trading sessions of the week, analysts said.

“Traders and investors seem impressed by the healthy start to the earnings season and easing crude oil prices,” said Prateek Jain, Director, Hem Securities.

Equity99’s Senior Research Analyst, Rahul Sharma said: “Sustained buying in key index stocks helped the markets to settle higher despite tepid global cues and RBI’s rate hike decision.”

“Buying followed on data showing that Indian service sector has remained in expansion territory for the second consecutive month in July.”

On the currency front, the rupee closed at 68.61 on Friday, strengthening by five paise from its previous week’s close of 68.66 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 403.51 crore, while the domestic institutional investors sold Rs 1,057.84-crore stocks in the past week.

Figures from the National Securities Depository (NSDL) suggested that foreign portfolio investors (FPIs) invested Rs 962.41 crore, or $139.80 million, in the equities segment during the week ended August 3.

Sector-wise, top gainers were pharma, public sector banks, energy and metals indices, while auto index was the major loser, said Deepak Jasani, Head – Retail Research at HDFC Securities.

The top weekly Sensex gainers were Coal India (up 6.32 per cent at Rs 278.50); Hindustan Unilever (up 6.15 per cent at Rs 1,759.45); Power Grid (up 5.57 per cent at Rs 189.60); Sun Pharma (up 5.01 per cent at Rs 584.85); and State Bank of India (up 4.19 per cent at Rs 298.60 per share).

The major losers were Tata Motors (DVR) (down 4.33 per cent at Rs 142.65); HDFC Bank (down 3.74 per cent at Rs 2,121); HDFC (down 3.43 per cent at Rs 1,974.35); Tata Motors (down 3.34 per cent at Rs 258.75); and Larsen and Toubro (down 1.53 per cent at Rs 1,291.35 per share).

IANS