Business
Markets end weekly trade flat, RBI policy next trigger (Weekly Review)
Mumbai, Jan 31
Major Indian equities indices
ended flat in the weekly trade which closed Jan 30, as sentiments were
bearish on sector specific movements based on related earnings.
According
to market observers, the wide movement in the Indian equities markets
was led by respective stocks which led to high volatility. However the
broad indices rallied and touched new record highs due to funds being
pumped in by the foreign investors.
"The markets reacted to
sector specific stocks on related earnings in the previous week's
trade," Devendra Nevgi, chief executive, ZyFin Advisors told IANS.
The benchmark 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE)
was down 95.89 points or 0.32 percent in the weekly trade ended Jan 30.
The barometer index closed at 29,182.95 points, while it had ended trade at 29,278.84 points on Jan 23.
In
the weekly trade ended Jan 23 the S&P BSE Sensex had gained
1,156.95 points or 4.11 percent. It had closed the week ended Jan 23 at
29,278.84 points, while it had ended trade at 28,121.89 points on Jan
16.
The Indian markets resumed trade on Tuesday (Jan 27) after
remaining shut Jan 26 on account of Republic Day. It touched three new
record intra-day highs in the weekly trade ended Jan 30.
"Markets
in an overdrive mode. We are hitting a new high almost every second
day," said Gaurang H.Shah, vice president, Geojit BNP Paribas Financial
Services.
"The impact of the visit of US President Obama is now
being factored in by the markets and what remains to be seen is how the
government is going to take it forward on policy changes and
implementation."
Shah added: "The earnings season has been a
mixed bag so far and in our view it will remain like this for some time
though we have had some selective upgrades come in sectors which have
delivered better then expected third quarter numbers."
However,
on Friday the S&P BSE Sensex closed 499 points or 1.68 percent down
on sector specific movement in banking, automobile and consumer durables
stocks.
"Markets fell on the last day of the week largely on the
back of worse-than-expected asset quality numbers declared by banks -
both public and private," said Kamlesh Rao, chief executive, Kotak
Securities.
On the global front US Fed retained its stand on the
rate cut in 2015 and the outcome of the Greek election reinforced
confidence of a stable government. Both the events were positive for the
Indian markets.
The strong positive traction in the Indian
markets attracted foreign investors in the week under review. The
foreign institutional investors (FIIs) remained net buyers in the
capital market segment.
For the week ended Jan 30, the FPIs
massively bought stocks in equity markets worth Rs.6,926.89 crore or
$1.12 billion, according to data with the National Securities Depository
Limited (NSDL).
The FPIs had picked up stocks worth Rs.5,748.07 crore or $930.99 million in the previous week ended Jan 23.
The
major Sensex gainers on Jan 30 were: Tata Power, up 2.90 percent at
Rs.90.55; BHEL, up 1.62 percent at Rs.291.80; NTPC, up 1.37 percent at
Rs.143.80; Wipro, up 0.79 percent at Rs.606.30; and Sesa Sterlite, up
0.67 percent at Rs.201.75.
The losers were State Bank of India
(SBI), down 5.13 percent at Rs.310; ICICI Bank, down 4.95 percent at
Rs.361.15; Dr Reddy's Lab, down 3.91 percent at Rs.3,228; Coal India,
down 3.81 percent at Rs.360.85; and HDFC, down 3.35 percent at
Rs.1,265.65.
Market insiders point out that the next major
trigger for the market will be the Reserve Bank of India's (RBI)
monetary policy review slated for Feb 3, the ongoing earnings season and
global events like crude oil price movement.
"The next big
events to watch out will be the RBI's monetary policy announcement,
budgetary expectations and the ongoing earnings results," Nevgi added.