Markets ended the week on a positive note, despite the losses on Friday, trimming the weekly gains to 0.5% due to selling in mining and financial shares.
It was a very volatile week for the Markets; the Nifty commenced the week on a subdued note and scaled pass 5,700 level mid-week to touch a high of 5,740-200 Day Moving Average on Friday. However, The CNP CNX Nifty was unable to sustain the gains and tumbled late afternoon on Friday due to selling in financial and mining shares. The S&P CNX Nifty declined 68 points, at 5,660 and the Sensex shed 220 points, at 18,858 on Friday. For the week, the Nifty advanced 34 points and Sensex was up 95 points. Both the benchmark indices closed up 0.5% for the week, clocking third consecutive week of gains.
Going forward markets will take cues from IT bellwether Infosys results on Tuesday. Analysts expect Infosys to reports dollar revenue guidance between 20-22% on back of strong volume growth and Earnings Per Share guidance of Rs 130-132 year-on-year.
Apurva Shah, Vice President & Head-Institutional Equities, Prabhudas Lilladher Pvt Ltd in the weekly note said earnings of India Inc. will remain lacklustre for some quarters due to weakening consumer demand. For the year, Prabhudas Lilladher has forecasted 17% growth in Nifty earnings (slightly above consensus), with some downside bias to the forecast.
HDFC, India’s oldest mortgage lender reported net profit of Rs 845 crore, up 22% on Friday but missed Bloomberg analysts estimates of Rs 877.43 crore due to low growth in home loan disbursements from rising interest rates, dialing back recent optimism over earnings which will start trickling in during the upcoming week. HDFC slipped 1.5% and closed the week at Rs 712.
The Indian Ministerial panel also approved the government draft mining bill on Friday, in which the mining companies would have to share 26% of their profits to compensate the locals which are dispersed and affected from mining operations. The bill has to get an approval from the cabinet after which it will be placed before the parliament. Most of the mining stocks posted losses this week. The BSE Metal index declined 1.2% for the week. On Friday, Sterlite Industries closed down 4%, at Rs 163, Hindalco fell 3.7%, at Rs 188, and Coal India was down 8%, at Rs 362
Mid-week the government also passed a bill to regulate the Microfinance Institutions and protect the lenders who were affected by the coercive practices of redeeming the money. SKS Microfinance jumped 20% mid-week and ended at Rs 493 on Friday.
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Reliance Industries was also on the radar during the week on reports that the government may approve the $7 billion deal between British Petroleum Plc and RIL for acquiring stake in 21 blocks of Krishna Godavari basin. Reliance Industries fell 1.8% on Friday, and closed the week at Rs 854.
BSE Realty index was the top gainer this week, the index advanced 7%. On Friday, D B Realty gained 12%, Unitech added 4.4% and Peninsula Land was up 4%.
From the broader markets the BSE midcap and the smallcap indices outperformed the benchmark, up 1.4% and 1.8% each.