The benchmark BSE Sensex extended its rise for the second consecutive week, gaining 265.14 points to finish at 28,797.25, while the broader Nifty rose 57.05 points to close at 8,866.70. Carrying on its bullishness, the truncated week saw the market opening on a positive note towered by confidence over global liquidity amid shrinking fears of US Fed rate hike any time soon due to weaker-than-expected US jobs data and also a commanding three-and-a-half year high domestic service sector growth.
The frenzy took the key indices to 17-months highs to reclaim 29k-level and Nifty to above 8,950-level, it was soon to be drained on fresh global caution after North Korea tested a nuclear warhead and European Central Bank’s (ECB) failure to deliver on new stimulus measures in its meet.
Stock-specific news also ruled the week’s momentum with Auto stocks surging on rise in domestic passenger vehicle sales for 14th straight month in August, while IT and Teck stock sliding following services major TCS’s outlook warning.
For the week, the Sensex opened higher at 28,631.27 and hovered in a range of 29,077.28 and 28,631.27 before closing at 28,797.25, showing a gain of 265.14 points, or 0.93 per cent. The market had gained 1015 points during two weeks.
The broader Nifty also rose to 57.05 points, or 0.65 per cent, to 8,866.70 after moving between a high of 8,968.70 and a low of 8,848.45. It also gained 294.15 points in two weeks. Buying was led by Realty, Auto, HealthCare, Capital Goods, Bankex, Consumer Durables, Oil&Gas, Power, Metal, PSUs and FMCG sectors firmly supported by smallcap and midcap companies shares.
While, IT and Teck shares witnessed intense profit- booking. The stock market remained closed on Monday, 5 September 2016 on account of holiday due to Ganesh Chaturthi.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 2,075.88 crores during the week, as per Sebi’s record including the provisional figure of September 09. In the broader market, the BSE Mid-Cap index rose 114.38 points or 0.86 per cent to settle at 13,345.32, underperforming the Sensex.
The BSE Small-Cap index gained 217.33 points or 1.72 per cent to settle at 12,861.39, outperforming the Sensex. Among the S&P, BSE sector and industry indices, Realty rose by 5.67 per cent, followed by Auto 2.40 per cent, Healthcare 2.18 per cent, Capital Goods 2.00 per cent, Bankex 1.96 per cent, Consumer Durables 1.93 per cent, Oil&Gas 1.79 per cent, Power 1.69 per cent, Metal 1.39 per cent and FMCG 0.15 per cent. However, IT fell by 1.88 per cent and Teck by 1.44 pct.
Among the 30-share Sensex pack, 24 stocks gained and remaining six stocks declined during the week. ONGC surged 6.51 per cent. The company’s net profit dropped 21.15 per cent to Rs 4232.54 crore on 20.23 per cent decline in total income to Rs 18737.18 crore in Q1 June 2016 over Q1 June 2015.
It was followed by Tata Steel 5.57 percent, ICICI Bank 4.90 per cent, Maruti 4.70 per cent, Tata Motors 4.22 per cent, SBI 3.79 per cent, Lupin 3.44 per cent, Reliance 3.05 per cent and Axis Bank 2.34 per cent.
TCS slumped 6.41 per cent. The stock was the biggest loser from the Sensex pack. The company warned of a slowdown in discretionary spending in banking, financial services and insurance (BFSI) vertical by its US clients. It was followed by HDFC 1.89 per cent, ITC 1.43 per cent and NTPC 0.63 per cent.
The total turnover during the week at BSE and NSE decline to Rs 15,531.06 crore and Rs 93,052.84 crore, respectively, as against last weekend’s level of Rs 17,607.67 crore and Rs 1,14,195.24 crore.