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Markets ended marginally lower as the benchmark indices were in red in three out of five trading sessions amid escalating Iraq violence and as the government deferred its decision on gas price hike by three months.
For the week, the Sensex slipped 5.59 points or 0.02% to end at 25,099.92 while the Nifty slumped 2.65 points or 0.03% to close the week at 7,508.80 levels.
Moreover, discretion was observed ahead of June derivatives’ expiry as investors are now eyeing Modi-led government’s first Union budget slated to be announced on 10, July 2014.
Even though benchmark indices edged marginally lower for the week, broader markets outperformed with the BSE Mid-cap and Small-cap indices up over 2.5% each.
Meanwhile, Reserve Bank of India in its biannual Financial Stability Report on Thursday said prospects of the country’s economic recovery look bright following the formation of a stable government at the Centre.
Rupee
The Indian rupee closed at 60.0850/0950 per dollar for the week. The unit moved in a tight range of 60.0650 to 60.15 during the session. Traders said there was demand from importers, especially form oil companies, to meet month-end import commitments.
Market movers
Index heavyweight and cigarette maker ITC slumped nearly 5% on media reports that Union Minister Harsh Vardhan suggested Finance Minister to raise tax on retail price of cigarettes from 45% to over 60% in the upcoming Union budget.
Shares of oil and gas heavyweights like Reliance Industries and ONGC slipped over 2% each after the government deferred its decision on gas price hike by three months till December 31, 2014. However, GAIL was up 4%.
Profit booking was visible in the metal space with major names like Hindalco, Tata Steel and Sesa Sterlite closing the week in red.
Hindaclo ended down by nearly 1.7% after the company during market hours on Wednesday said, that CRISIL has downgraded the company's long term debt rating from AA+/Stable to AA/Stable.
Sesa Sterlite and Tata Steel dipped 0.05- 1%.
Bajaj Auto was the best performer for the week as the scrip surged over 6% after the government extended an excise duty concession by six months till December 31, 2014. The relief, as announced in the Interim Budget, was originally scheduled to end on June 30.
Some of the other auto names in spotlight were Hero MotoCorp, Mahindra & Mahindra and Maruti Suzuki up 1-4%.
From the banking space, only SBI and Axis Bank among Sensex-30 closed in green, adding 2% each.
The BSE Heathcare index closed at a record high of 11,260 mark.
Dr Reddy’s Lab added over 4.5% after the pharma major launched duloxetine delayed-release capsules in the US market.
Dr Reddy’s Lab added over 4.5% after the pharma major launched duloxetine delayed-release capsules in the US market.
Sun Pharma gained 4.5% and hit record highs in intraday trading on Friday.
It was another positive week for Wipro and TCS which gained 2-5%.TCS surged to record new intra day high on the last trading day of the week.
Meanwhile, Infosys slipped nearly 3% but on Friday the scrip closed 1.3% higher on the back of improving demand environment after Accenture Plc reported better-than-expected revenue for the third quarter ended May 31, 2014 because of higher demand for its consulting services.
Week Ahead
Reliance Industries to be in focus as the Securities Appellate Tribunal is likely to deliver its order on an insider trading case on Monday.
Monthly auto sales numbers
US non-farm payroll data, expected on July 3
Macro data in the form of infrastructure output data, Federal deficit data for the first two months of this fiscal, external debt data and services PMI
European central bank's rate decision is also expected.
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With inputs from Capital Market
