 "Weekly: Rate-cut hopes, slump in crude oil prices lift markets to record highs")
The benchmark indices ended the week at record closing highs, with the Nifty topping 8,600 during the week. The gains were led by rate-sensitive shares on hopes of a rate cut; falling crude prices also aided sentiment.
In the week ended November 28, the 30-share Sensex closed at 28,693.99, up 1.2 per cent, while the 50-share Nifty ended at 8,588.25, a rise of 1.3 per cent.
On Friday, overall investor wealth in the Indian stock market touched a record high of Rs 100 lakh crore, a jump of 10 times in about a decade.
The broader markets underperformed the benchmarks, with the BSE mid-cap index rising 0.7 per cent and the BSE small-cap index ending 0.5 per cent lower. During the week, foreign investors were net buyers in equities to the tune of Rs 3,083.46 crore, according to provisional stock exchange data.
For the quarter ended September, India’s gross domestic product grew 5.3 per cent, compared with 5.7 per cent in the previous quarter. The fall was primarily due to slow growth in the manufacturing sector, which expanded only 0.1 per cent, compared with 3.5 percent in the previous quarter.
Among sectoral indices, the BSE realty index gained the most, rising 3.6 per cent, followed by the information technology, banking, metals and automobile indices.
Bhel gained the most, surging 12 per cent on an upgrade by Citigroup. It was followed by Hindalco, which gained 8.59 per cent.
In the automobile sector, Mahindra & Mahindra rose 6.2 per cent, while Hero MotoCorp gained 3.8 per cent. Hindalco gained 8.6 per cent, while Tata Steel rose 2.3 per cent.
Shares of state-owned banks rose after Jayant Sinha, minister of state for finance, said in the Lok Sabha on Friday that the government planned to cut its stake in these banks to 52 per cent to substantially reduce the requirement of the budgetary provision for capital infusion. State Bank of India closed 5.4 higher.
The announcement also led to Bajaj Auto closing with a loss of 1.32 per cent, as 12 per cent of the company’s revenue comes from Nigeria.
ITC closed with a loss of 3.5 per cent after the Ministry of Health & Family Welfare accepted an expert committee’s recommendations to ban the sale of loose cigarette sticks, increase the minimum legal age for tobacco consumption and impose higher fines for violation of prohibitory rules on the use of tobacco products.
Week ahead
The Reserve Bank of India’s policy review meeting on Tuesday, as well as policy announcements in Parliament, is likely to be determining factor. Rate-sensitive stocks will be in focus, depending on the central bank’s stance on key policy rates. From Monday, automobile companies will start releasing data on their monthly sales for November.
The HSBC Purchasing Managers’ Index for manufacturing in India and Germany for November will also be released on Monday.
Globally, the European Central Bank’s policy meeting on Thursday and the US’s non-farm payroll data for November will be watched.
In the week ended November 28, the 30-share Sensex closed at 28,693.99, up 1.2 per cent, while the 50-share Nifty ended at 8,588.25, a rise of 1.3 per cent.
On Friday, overall investor wealth in the Indian stock market touched a record high of Rs 100 lakh crore, a jump of 10 times in about a decade.
The broader markets underperformed the benchmarks, with the BSE mid-cap index rising 0.7 per cent and the BSE small-cap index ending 0.5 per cent lower. During the week, foreign investors were net buyers in equities to the tune of Rs 3,083.46 crore, according to provisional stock exchange data.
For the quarter ended September, India’s gross domestic product grew 5.3 per cent, compared with 5.7 per cent in the previous quarter. The fall was primarily due to slow growth in the manufacturing sector, which expanded only 0.1 per cent, compared with 3.5 percent in the previous quarter.
Among sectoral indices, the BSE realty index gained the most, rising 3.6 per cent, followed by the information technology, banking, metals and automobile indices.
Bhel gained the most, surging 12 per cent on an upgrade by Citigroup. It was followed by Hindalco, which gained 8.59 per cent.
In the automobile sector, Mahindra & Mahindra rose 6.2 per cent, while Hero MotoCorp gained 3.8 per cent. Hindalco gained 8.6 per cent, while Tata Steel rose 2.3 per cent.
Shares of state-owned banks rose after Jayant Sinha, minister of state for finance, said in the Lok Sabha on Friday that the government planned to cut its stake in these banks to 52 per cent to substantially reduce the requirement of the budgetary provision for capital infusion. State Bank of India closed 5.4 higher.
The announcement also led to Bajaj Auto closing with a loss of 1.32 per cent, as 12 per cent of the company’s revenue comes from Nigeria.
ITC closed with a loss of 3.5 per cent after the Ministry of Health & Family Welfare accepted an expert committee’s recommendations to ban the sale of loose cigarette sticks, increase the minimum legal age for tobacco consumption and impose higher fines for violation of prohibitory rules on the use of tobacco products.
Week ahead
The Reserve Bank of India’s policy review meeting on Tuesday, as well as policy announcements in Parliament, is likely to be determining factor. Rate-sensitive stocks will be in focus, depending on the central bank’s stance on key policy rates. From Monday, automobile companies will start releasing data on their monthly sales for November.
The HSBC Purchasing Managers’ Index for manufacturing in India and Germany for November will also be released on Monday.
Globally, the European Central Bank’s policy meeting on Thursday and the US’s non-farm payroll data for November will be watched.