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Markets posted their third-straight weekly gains on hopes of global growth recovery after the central bank’s monetary policy easing.
Risk appetite improved after the US Federal Reserve and European Central Bank kept the monetary policy loose to support flagging growth.
Back home, the Reserve Bank of India in its monetary policy review on Friday reduced repo rates by much-anticipated 25 basis points but hinted towards a little room for future policy easing.
On Friday, the Bombay Stock Exchange's 30-share index Sensex fell 160.13 points to end at 19,575.64 while the National Stock Exchange's 50-share Nifty declined 55.35 points to close at 5,944.
However, for the week, Sensex gained 1.5 per cent while rose 1.24 per cent in the corresponding period.
Global risk appetite improved after positive set of economic data from US coupled with global central bank’s easing.
In US, payrolls increased by 140,000 workers following a gain of 88,000 in March, according to the median estimate in a Bloomberg survey of 90 economists.
Meanwhile, the United States Federal Reserve said it will continue to purchase 85 billion dollars in bonds every month, in order to keep interest rates low.
The Fed has been using this policy, known as quantitative easing, to increase the money supply. The aim is to stimulate growth and support employment.
Meanwhile, the European Central Bank added to hopes that more stimulus from yet another major central bank will help shore up the global economic recovery.
The ECB President Mario Draghi also said the ECB stood ready to ease further if needed, dealing a blow to the euro currency as investors looked elsewhere for better returns.
For the week, the Dow Jones rose 1.8 per cent, the S&P gained 2 per cent and the Nasdaq rose 3 per cent in its biggest weekly climb since the first week of the year while European stocks advanced to their highest level since 2008.
Domestically, key sectoral indices such as FMCG, IT, Technology and power surged between 2-7 per cent while autos and power dragged posting a drop of 0.5-1% for the week on the BSE.
Broader markets also gained, moving in-line with benchmark indices and posted a gain of nearly 1 per cent for the week.
MOVERS & SHAKERS
Hindustan Unilever surged 23 per cent after the parent Unilever Plc on Tuesday announced it planned to spend up to $5.4 billion (Rs 29,202 crore) in cash to increase its stake in its Indian subsidiary, to 75 per cent from 52.48 per cent now.
Reliance Communications (RCom) gained 18% for the week after Anil Ambani-owned firm signed Rs 1,200-crore agreement with elder brother Mukesh Ambani-owned Reliance Jio Infocomm to share its optic fibre network on April 2.
OUTLOOK
Markets are expected to take cues from global indices from hereon.Domestically, March services PMI on Monday and factory output data on Friday will be watched out for.
"The medium-term outlook remains positive with reversal around the 20-daily moving average (DMA), as the index has taken support around the 20-weekly moving average, ie 5855, with a close above the previous swing high, ie 5971," a research report by Sharekhan quoted.
In the earnings calendar, we have GlaxoSmithKline Pharmaceuticals (Tuesday), Ranbaxy Laboratories Ltd and Lupin (Wednesday), Asian Paints (Thursday) and Reliance Communications (Friday) this week.
Globally, Euro-zone retail sales and ECB President Dranghi’s speech (Monday), China’s consumer price index and Bank of England’s interest rate decision (Thursday) will be crucial triggers for markets.
