Market extend gain marking new milestone, up 538 points

Market extend gain marking new milestone, up 538 points
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Mumbai: Market maintained its surge for eighth straight week, pursuing last weeks record milestone setting spree as the benchmark Sensex gained 538.86 points to end at 36,050.44, while the broader Nifty closed at 11,069.65.

Bulls continued to stay-put as key benchmark set of with new milestones record highs during truncated week, barring a profit-booking on Thursday’s session due to F&O derivative expiry for January series.

The market sidelined high crude prices and negatives as investor optimism came to the fore amid strong liquidity and optimism triggered International Monetary Fund (IMF) once again projecting India set to retain the world fastest growing economy.

In its latest World Economic Outlook (WEO) update released on Monday in Davos on the sidelines of the World Economic Forum, the International Monetary Fund (IMF) India is projected to grow at 7.4 per cent in 2018-19 retaining the fastest growing country among emerging economies.

Also the market rallied on supported by robust FII inflows, better than expected corporate earnings and good uplift upcoming budget scheduled on February 1st, as Sensex and Nifty registered record highs while capturing key milestones of 36,000-level and 11,000-level during the week.

The surging indices took a pause during Thursday amid profit-booking and were off record highs, though ending the week with remarkable gains. The market was closed on Friday January 26th on account of ‘Republic Day’.

The Sensex started the week higher at 35,613.97 and hovered between new milestone record high of 36,268.19 and 35,544.68 before closing at 36,050.44, showing a gain 538.86, or 1.52 per cent. (The Sensex garnered 3,039.73 points or 9.26 per cent in during past seven week sessions).

The Nifty also resumed the week up at 10,883.20 and marked milestone of 11,110.10 and 10,881.40 before ending the week at 11,069.65, showing a gain of 174.95 points, or 1.61 per cent.

Buying was led by IT, Metal, Oil and Gas, Capital Goods, Banks, Teck, PSUs, HealthCare, Realty and FMCG. While, profit-booking was seen in Consumer Durables, IPOs, Auto and Power sectors.

The broader midcap managed to snap last week sluggishness to end with gains, while small cap continued to drag.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 5,840.21 crore during the week, as per Sebi’s record including the provisional figure of January 25, 2018.

The BSE Mid-Cap index rose 0.43 per cent. The BSE Small-Cap index fell 0.59 per cent. Both these indices underperformed the Sensex.

Among sectoral and industry indices, IT climbed by 3.63 per cent followed by metal 2.74 per cent, oil and gas 2.25 per cent, capital goods 2.16 per cent, bankex 2.00 per cent, teck 1.65 per cent, PSU 1.23 per cent, healthcare 1.08 per cent, realty 1.03 per cent and FMCG 0.68 per cent.

However, consumer durables fell by 2.60 per cent, IPO 1.51 per cent, auto 1.32 per cent and power 0.65 per cent. Among the 31-share Sensex pack, 21 stocks rose and remaining 10 stocks fell during the week.

Major Index gainer ONGC jumped 7.57 per cent. ONGC on Friday, 19 January 2018, approved acquisition of the entire 51.11 per cent shareholding of Government of India (GoI) in HPCL, at a cash purchase consideration of Rs 473.97 per share with a total acquisition cost of Rs 36915 crore.

The parties expect to complete the transaction before end of January 2018. It was followed by TCS 5.52 per cent, Coal India 5.34 per cent, Yes Bank 4.06 per cent, Axis Bank 3.98 per cent, Reliance 3.79 per cent, L&T 2.99 per cent, Kotak Bank 2.97 per cent, Indus Ind Bank 2.79 per cent, ITC 2.56 per cent, Infosys 2.41 per cent and Bajaj Auto 2.47 per cent.

However, Telecom major Bharti Airtel slumped 9.07 per cent. The stock was the biggest loser from the Sensex pack.

The company announced during trading hours on Wednesday, 24 January, that it has received an approval for the acquisition of Tigo Rwanda, a subsidiary of Millicom International Cellular SA from the Rwanda Utilities Regulatory Authority (RURA). It was followed by Tata Motors DVR 6.56 per cent, Wipro 5.02 per cent, Tata Motors 4.48 per cent, Asian Paints 3.71 per cent, M&M 1.11 per cent and Power Grid 1.05 per cent.

The total turnover during the week on BSE fell to Rs 22,625.37 crs as against last weekend’s level of Rs 30,737.02 crores, While NSE dipped to 1,66,288.96 compared to Rs 1,87,256.67 crs previously.

PTI