Watch out for the previous week’s low to be violated before a downtrend starts. There is a lot of liquidity bringing in buyers on every dip
The Indian market closed higher this week, making it the fourth weekly close in the positive. Inflows from foreigners and supportive global cues aided the gains. Barring a negative close on Thursday, the market closed higher on the other four trading days of the week. Investors will focus on the headline inflation numbers, due on Monday, for fresh directions for the market.
The Sensex finished 507 points (2.59%) higher at 20,083, its best close since 28 January 2013. The Nifty settled at 6,095, a gain of 151 points (2.54%), its highest closing level since 4 January 2011. Watch out for the previous week’s low to be violated before a downtrend starts. There is a lot of liquidity bringing in buyers on every dip.
Gains in blue chips and IT stocks in late trade helped the market close higher on Monday. The benchmarks ended in the green on Tuesday after the Centre announced plans to divest 10% stake in Coal India. Strong quarterly earnings from leading mortgage lender HDFC and pharma major Lupin saw the market extending its gains for the third day.
The market snapped its three-day winning streak on Thursday as it settled lower on profit taking and unsupportive global cues. An uptick in industrial production growth for March helped the market close in the green on Friday.
BSE Fast Moving Consumer Goods and BSE Auto (up 4% each) were the top sectoral gainers. There were no losers in the week.
The top Sensex gainers were Tata Motors, Hindalco Industries (up 8% each), ITC (up 7%), Hero MotoCorp (up 6%) and TCS (up 5%). The losers were led by Coal India (down 6%), Sun Pharmaceutical Industries (down 5%), NTPC (down 3%), Jindal Steel & Power (down 2%) and Cipla (down 1%).
The top performers on the Nifty were Tata Motors, Hindalco Ind, IndusInd Bank (up 8% each), ITC (up 7%) and Hero MotoCorp (up 6%). Coal India (down 6%), Sun Pharma (down 5%), NTPC (down 3%), JSPL (down 2%) and Ranbaxy Laboratories (down 1%) were the noteworthy losers on the benchmark.
India’s industrial growth bounced back to 2.5% in March on better performance of manufacturing and power sectors coupled with higher output of capital goods. However, factory output, as measured in terms of Index of Industrial Production (IIP), grew by just 1% in 2012-13 compared to a growth of 2.9% in previous fiscal.
Indian services sector growth eased during April as new orders came in at a much slower pace. The HSBC Services Purchasing Managers’ Index fell to 50.7 in April 2013 from 51.4 in March 2013.
Car sales in India fell for the sixth month in a row in April, the longest stretch of decline since industry body SAIM started collating data in 1997-1998, as weak consumer sentiments, high interest costs and other macro-economic factors continued to hurt demand.
Domestic passenger car sales declined by 10.43% to 1,50,789 units in April this year compared to 1,68,354 units in the same month of 2012. Motorcycle sales fell by 2.06% to 8,43,889 units from 8,61,608 units in the same month previous year.
In international news, US indices closed higher for the third week in a row with the Dow and the S&P 500 closing at record highs boosted by positive earnings reports and as central banks across the world lowered key interest rates. Meanwhile, investors are eyeing the outcome of the meeting of finance ministers and central bank heads of the Group of Seven industrialised nations for announcements on new measures to support growth.