Nine weeks and still counting—this tells the story of the current rally. The unabated buying by FIIs has taken the barometer index up 12.6% from 15915.65 nine weeks ago to 17933.14 at the current juncture and the Nifty has gained by 12.7% from 4757.25 to 5361.75 during the period. And on a weekly basis, the Sensex has been up 1.3% from 17692.62 a week ago and the Nifty moved up 1.3% from 5290 a week ago.
The net inflows of foreign institutional investors (FIIs) into domestic equities crossed the $5 billion mark on April 7, according to latest data released by the capital market regulator, Securities and Exchange Board of India (Sebi). FIIs pumped $5.23 billion (approx Rs 23,689 crore) into the stock markets this year till April 7, including nearly $5.03 billion (approx Rs 22,972 crore) post the Budget Day (February 26). The total FII net investments in the Indian markets (including equity and debt) have touched nearly $10 billion in the first three and half months.
Not that the week was bereft of hiccups. The Sensex declined by 255 points on Thursday as the Greece crises reared its head once again…only to rebound on the very next day as the European Central Bank helped Greece by prolonging easier rules on debt and making it eligible as security against cheap central bank cash. And by the close of the last trading session, the penultimate day’s trading session seemed like an aberration.
The wholesale food inflation continued to move higher primarily due to the rising prices of milk and pulses. Food inflation, as measured by the Wholesale Price Index (WPI), stood at 17.70 per cent for the week ended March 27, as against 16.35 per cent in the previous week and 6.97 per cent in the corresponding period last year,
Among other major developments during the week, the Cabinet Committee on Economic Affairs (CCEA) approved disinvestment in Steel Authority of India Ltd (SAIL) to mop up an estimated Rs 16,000 crore. SAIL will raise an additional 10 per cent of the paid-up equity and the government on its part will disinvest 10 per cent of its holding in the PSU. Sail shed around 8% post the announcement to end the week at Rs 234.
Shree Ganesh Jewellery House made a depressing debut. The jewellery stock shed more than 35% on Day 1 to close at Rs 163 vis-a-vis the initial public offer price of Rs 260.
The weekly gainers list was an eclectic mix drawn from realty to engineering et all. Reliance Infra topped the gainers list during the week. The Reliance Group company spurted by Rs 86 or 8.5% at Rs 1101. DLF strengthened by Rs 23 or 7.4% at Rs 334 and BHEL added Rs 144 or 6% at Rs 2563. Hero Honda, Reliance Communications and Tata Motors are the other significant gainers. And RIL has added Rs 30 or 2.8% at Rs 1123.
On the loser’s side, Hindustan Unilever weakened by Rs 9 or 4% at Rs 221, Hindalco shed Rs 4 or 2.7% at Rs 2.7% at Rs 178 and TCS lost Rs 15 or 1.9% at Rs 792.
The information technology stocks had a subdued week ahead of the Infosys result scheduled on May 14. Infosys ended flat at Rs 2678. TCS ended 1.9% down at Rs 792 and Wipro slid by 1.5% at Rs 710.
