Plummeting domestic growth coupled with international crude oil prices, contrasted with easing inflation, led the equities markets to post healthy weekly gains from the trade ended Nov 28.
Gaining 1.26 percent or 359.63 points in the weekly trade session, the Indian equities markets observed a mixed bag of sentiments.
Positive global cues like continuing Chinese stimulus, prevailing low crude oil prices, cheered-the market. While anxiety prevailed on quarterly economic expansion and widening trade deficit.
However, the markets continued to fantasies about an upcoming interest rate cut from the central bank next month in its fifth bi-monthly monetary policy review on Tuesday, Dec 2, 2014.
"Markets are hoping for a rate cut in the RBI policy meeting next week. Going ahead, apart from the RBI meeting, fiscal reforms from the Government will be needed for the markets to move higher on a sustainable basis," Dipen Shah, head of private client group research, Kotak Securities.
The benchmark Sensex was up by 1.26 percent or 359.36 in the week ended Nov 28 from its previous weekly close on Nov 21. The index closed at 28,693.99 points, while it had ended trade at 28,334.63 points points on Nov 21.
In the week ended Nov 21, the benchmark had made gains of 1.02 percent or 287.97 points in the weekly trade from its previous close on Nov 14. The index closed at 28,334.63 points, while it had ended trade at 28,046.66 points points on Nov 21.
"All eyes are on winter session to provide strong platform, especially
on GST (goods and service tax), insurance bill, coal and land. The parliament session will elaborate what should be expected from reform and hence next budget," said Vinod Nair, head - fundamental research, Geojit BNP Paribas.
"There is a possibility that market can consolidate during the
long session to be concluded on Dec 24, and henceforth move ahead based on
outcome."
The supportive global cues, expectations of an early interest rate cut also kept foreign investor's clued to the Indian markets.
For the week ended Nov 28, the FPIs massively bought stocks worth Rs.2,975.48 crore or $480.89 million, according to data with the National Securities Depository Limited (NSDL).
For the week ended Nov 21, FPIs intake stood at Rs.1,675.75 crore or $271.65 million.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.
On Friday, the FPIs invested Rs.738.76 crore or $119.41 million in the Indian equities markets.
On Friday, positive international and domestic cues led a bullish drive in a benchmark index of Indian equities markets which hit a record high of 28,822.37 points.
Bullish sentiments were witnessed as a result of positive global cues like OPEC's (Organisation of the Petroleum Exporting Countries) decision to sustain the production levels which lead to a sharp fall in crude prices.
On domestic front, expectations of a dovish move by the RBI to cut key lending rates after a slew of data showed easing inflation impacted interest sensitive stocks like banking positively.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 28,490.71 points, ended the day's trade at 28,693.99 points, up 255.08 points or 0.90 percent from the previous day's close at 28,438.91 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) too made healthy gains and touched a record high of 8,617 points surpassing its earlier milestone of 8,588.25 points hit on Nov 25.
However, it closed 8,588.25 points, up 94.05 points or 1.11 percent.
The major Sensex gainers were: State Bank of India, up 5.10 percent at Rs.321.45; Axis Bank, up 2.79 percent at Rs.481.05; Tata Steel, up 2.78 percent at Rs.473.30; Tata Motors, up 2.78 percent at Rs.532.95; and Mahindra and Mahindra, up 2.53 percent at Rs.1,323.75.
The major Sensex losers were: Sesa Sterlite, down 2.88 percent at Rs.231.30; Bharti Airtel, down 1.01 percent at Rs.381.95; ONGC, down 0.71 percent at Rs.379.50; Dr Reddy's Lab, down 0.44 percent at Rs.3,592.15; and GAIL, down 0.35 percent at Rs.487.95.
