Market Review: Robust quarterly earnings push equity indices higher

Last Updated: Sun, Apr 29, 2018 12:24 hrs
Sensex

Mumbai: Healthy earnings in the fourth quarter of 2017-18 lifted the benchmark equity indices during the week ended Friday.

Indices logged gains in four of the five trading sessions as both -- the S&P BSE Sensex and the NSE Nifty50 -- settled at their highest closing levels in over three months.

On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 554.12 points or 1.61 per cent to close at 34,969.70 points.

The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,692.30 points -- up 128.25 points or 1.21 per cent from its previous week's close.

"Markets surged higher extending winning streak to fifth consecutive week on positive sentiment...," said Prateek Jain, Director, Hem Securities.

"Good roll-over of long-position in the May Series of derivative contract, continuous buying by domestic institutional investors also boosted sentiment," Jain told IANS.

Rahul Sharma, Senior Research Analyst at Equity99 said: "Better than expected quarterly earnings led the rally in the April series. Traders preferred to ignore major on-going concerns like rising crude oil prices, rising bond yields and weaker rupee."

According to D.K. Aggarwal, Chairman and MD of SMC Investments and Advisors, the stock markets remained volatile amid corporate earnings and ahead of its expiry of April futures and options contracts.

"As expected, the European Central Bank left interest rates and its bond-buying program unchanged after a meeting Thursday. Keeping inflation target at close to two percent, Bank of Japan (BoJ) left monetary policy unchanged," Aggarwal told IANS.

On the currency front, the rupee weakened by 54 paise to close at 66.67 against the dollar from its previous week's close at 66.13.

Aggarwal further said: "Domestic currency continued to get hammered, and is headed for its third straight week of losses as outflows increase from stock market and bonds amid rising US yields."

On the investment front, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 3,060.41 crore, while the domestic institutional investors purchased stocks worth Rs 2,649.61 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 1,028.83 crore, or $155.20 million, during April 23-27.

Sector-wise, on the benchmark indices, the top sectoral gainers for the week were banking, realty and pharmaceuticals, while the top losers for the week were infrastructure and oil and gas sectors, Deepak Jasani, Head, Retail Research, HDFC Securities told IANS.

Scrip-wise, Tata Consultancy Services (TCS) achieved a major landmark during the week as it become the first Indian listed techonology company to cross the $100-billion mark in terms of market capitalisation on Monday due to its robust quarterly earnings.

"It (TCS) also entered the list of top 100 global companies by market capitalisation," Rahul Sharma said, adding that, "Reliance Industries was also seen heading towards the $100 billion market cap mark, as the stock rose over seven percent in the last five days."

The top weekly Sensex gainers were: Yes Bank (up 12.97 per cent at Rs 348.45); Mahindra and Mahindra (up 7.61 per cent at Rs 861.45); Reliance Industries (up 7.19 per cent at Rs 994.75); Axis Bank (up 6.53 per cent at Rs 538.90); and Adani Ports (up 5.30 per cent at Rs 401.45).

The losers were: Wipro (down 7.71 per cent at Rs 275.35); Maruti Suzuki (down 2.87 per cent at Rs 8777.95); Tata Steel (down 2.75 per cent at Rs 589.65); Coal India (down 2.23 per cent at Rs 285.55); and NTPC (down 1.95 per cent at Rs 170.85).



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