Weekly roundup: Best week in 8-month; Sensex surges a whopping 848 points
The market put a stellar show in a holiday-truncated expiry week with benchmark indices rising the most in eighth-month thanks to higher rollovers to February series ahead of Union Budget 2017 as a pre-Budget rally defied the negative results from the companies such as Wipro, Ashok Leyland, HUL and M&M. Positive sentiment in global markets after Dow Jones, Wall Street’s closelywatched index, hit its fresh lifetime high of 20,000-mark, also aided the sentiment. During the week ended January 27, the S&P BSE Sensex added 3.1% or 848 points to settle at 26759, while Nifty50 gained 3.5% or 291 points to close the week at 8641.
Midcap and Smallcap stocks jumped. The BSE Midcap index rose 3%, while the BSE Smallcap index surged 2.8%. "With signs of FIIs taking interest in Indian equities, and with January derivatives’ expiry witnessing a 5-month high rollover in Nifty, investors continued to chase price higher, with only a few days left before budget is presented. It also helped that Dow continued to close above-20000 mark lending positivity to global markets,� said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services. Sectors and stocks All sectoral indices settled in green. The week saw BSE Metal index gaining 5.9%, followed by the BSE Consumer Durables and the BSE PSU index, which gained 5.5% each. The BSE Oil & Gas index (4.9%), the BSE Bankex (4.8%) and the BSE Auto (4.5%) were other sectoral gainers. Among individual stocks, HDFC, Adani Ports and SBI surged 10.8%, 6.7% and 6.1%, respectively for the week. Bajaj Auto gained 5.7%, Hero MotoCorp advanced 5.1%, while Mahindra & Mahindra added 5%. Losers included Wipro (2.4%), Infosys (0.7%), Hindustan Unilever (0.6%) and Sun Pharma (0.2%). FIIs net buyers Foreign investors turned net buyers for the week, purchasing equities worth nearly Rs 1,300 crore. Till Wednesday, FIIs bought equities worth Rs 1,082 crore, data available with National Securities Depository Ltd (NSDL) showed. On Friday, they were net buyers to the tune of Rs 212 crore, provisional data available with BSE showed.
January rollovers Against all the odds Nifty ended the January series on a strong note gaining nearly 6.2%. The market-wide rollovers stood at 77% as compared to average rollovers of 78% in the last three series. Nifty futures rollover came in at 73% which is higher than the average rollovers of 68% in the last three series. The quantum of leverage has also risen sharply, said brokerage Edelweiss Securities in a technical note. "Needless to mention, the scope for disappointment from the Union Budget has narrowed than ever before. Key events to watch out would be the Union Budget, events leading to the State elections and the Q3FY 17 earnings. Moreover with Trump assuming office, there would be no dearth of action," the brokerage added. MARKET NEXT WEEK: Finally, we enter the Budget week with the much-awaited B-day falling on Wednesday. Government’s move on Friday on general antiavoidance rules (GAAR, on taxes) has set the positive tone for more Budget stimulus, yet the investors are expected to trade sideaways in the two-day to Budget, while the Budget announcements will of course chart the market direction during the rest of the days. Besides, several central banks are scheduled to take a call on interest rates next week. Article By – Business Standard