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Markets have registered gains for the second straight week after global rating agency Moody’s raised India’s credit outlook to ‘positive’ from ‘stable’, anticipating policymakers' actions will lift India’s economic growth.
A stellar performance by Reliance Industries’ (RIL) after a significant recent gas discovery, MJ-1, coupled with a strong rally in the fast moving consumer goods (FMCG) stocks on renewed buying interest at attractive valuations lifted the benchmark indices higher.
In the week ended April 10, the 30-share Sensex ended up 619.24 points, or 2.19 per cent, at 28,879.38 and the 50-share Nifty ended up 194.10 points or 2.26 per cent, at 8,780.35.
The broader markets outperformed the benchmark indices as investors bought mid-cap and small-cap shares at attractive valuations. BSE mid-cap index advanced 342.60 points, or 3.19 per cent, and small-cap index gained 699.61 points, or 6.28 per cent.
“The market showed a steady trend last week with a positive bias with buying emerging at every correction. The highlight was, however, the mid-cap and small-cap segments of the market which saw strong buying in several counters. For the coming week, some consolidation could be seen with moves mirroring sentiments post the beginning of the corporate results particularly TCS (Tata Consultancy Services), which could have a bearing on the IT pack. However, positive price action could continue in the mid-cap small-cap segments,” said K Subramanyam, co-head (equity advisory) at Altamount Capital.
Key events of the week
The Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday held repo rate unchanged at 7.5 per cent, as expected. Further, the cash reserve ratio, which is the amount of deposits that lenders must keep with RBI, was also left unchanged at four per cent. Moody’s ratings revised India’s sovereign rating outlook to ‘positive’ from ‘stable’ on Thursday, a step closer to an upgrade of the credit rating.
According to the Society of Indian Automobile Manufacturers, domestic passenger car sales grew 2.64 per cent to 176,011 units in March from 171,491 units in the same month of last year and motorcycle sales last month dipped 5.22 per cent to 8,59,521 units against 9,06,901 units a year earlier.
On the global front, Japan’s Nikkei breached 20,000 points for the first time in 15 years fuelled by Japanese Prime Minister Shinzo Abe’s pro-growth policies.
A stellar performance by Reliance Industries’ (RIL) after a significant recent gas discovery, MJ-1, coupled with a strong rally in the fast moving consumer goods (FMCG) stocks on renewed buying interest at attractive valuations lifted the benchmark indices higher.
In the week ended April 10, the 30-share Sensex ended up 619.24 points, or 2.19 per cent, at 28,879.38 and the 50-share Nifty ended up 194.10 points or 2.26 per cent, at 8,780.35.
The broader markets outperformed the benchmark indices as investors bought mid-cap and small-cap shares at attractive valuations. BSE mid-cap index advanced 342.60 points, or 3.19 per cent, and small-cap index gained 699.61 points, or 6.28 per cent.
“The market showed a steady trend last week with a positive bias with buying emerging at every correction. The highlight was, however, the mid-cap and small-cap segments of the market which saw strong buying in several counters. For the coming week, some consolidation could be seen with moves mirroring sentiments post the beginning of the corporate results particularly TCS (Tata Consultancy Services), which could have a bearing on the IT pack. However, positive price action could continue in the mid-cap small-cap segments,” said K Subramanyam, co-head (equity advisory) at Altamount Capital.
Key events of the week
The Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday held repo rate unchanged at 7.5 per cent, as expected. Further, the cash reserve ratio, which is the amount of deposits that lenders must keep with RBI, was also left unchanged at four per cent. Moody’s ratings revised India’s sovereign rating outlook to ‘positive’ from ‘stable’ on Thursday, a step closer to an upgrade of the credit rating.
According to the Society of Indian Automobile Manufacturers, domestic passenger car sales grew 2.64 per cent to 176,011 units in March from 171,491 units in the same month of last year and motorcycle sales last month dipped 5.22 per cent to 8,59,521 units against 9,06,901 units a year earlier.
On the global front, Japan’s Nikkei breached 20,000 points for the first time in 15 years fuelled by Japanese Prime Minister Shinzo Abe’s pro-growth policies.
Sectors & stocks
On the sectoral front, all sectoral indices ended in green. BSE Metal and Realty indices were the top gainers up 5.6 per cent followed by BSE FMCG, Consumer durables, IT, oil & gas, power, FMCG indices up between three and five per cent.
Dr Reddy’s Laboratories and its subsidiary, Promius Pharma, filed three new drug applications in support of the company’s proprietary products group with the US FDA. The stock gained nearly eight per cent.
Real estate companies’ shares closed higher on the bourses on media reports that the Union government cleared amendments to the Real Estate (Regulation and Development) Bill, 2013, paving the way for legislation on regulators for the sector. Anant Raj, HDIL, Sobha Realty, Oberoi Realty and Unitech gained up to 31 per cent.
Outlook
The fourth quarter corporate earnings beginning in the truncated week ahead will dictate the trend on the bourses in the forthcoming week.
Shares of public sector oil marketing companies will be in focus as fuel price review is due at the middle of the month.
Further, markets will react to the industrial production data for February released on Friday after market hours. Also, investors will cautiously await for the consumer price index and the wholesale price index, which will be unveiled next week.
Markets will be closed on Tuesday, April 14, 2015, on account of Dr Baba Saheb Ambedkar Jayanti.
