As long as Nifty stays above 6,290 on a closing basis, the bulls will be in control
This is the second consecutive week when the benchmark managed to close in the positive. The BSE 30-share Sensex rose 114 points (up 0.54%) during the week that ended on 27th December and closed at 21,194 while the NSE Nifty-50 closed at 6,314 (up 40 points or 0.63%).
On Monday, the market closed in the positive with the hope that the Nifty should manage to close above 6,280 in the days to come for keeping the uptrend going. The Reserve Bank of India (RBI) governor stated that despite a fall in the current account deficit, India is not out of the woods yet and hopes to make rupee a worthy currency to invest in.
In spite of the positive US economic data on household purchases and consumer confidence, on Tuesday the Indian market closed in the negative, below the level of 6,280. The RBI may soon unveil a major change in monetary policy to explicitly manage consumer inflation, rather than wholesale prices, its main objective.
After a trading holiday on Wednesday on account of Christmas, the market opened marginally higher on Thursday and closed in the green after witnessing a volatile session on account of the December futures and options expiry. The Planning Commission's growth target of 8% for the 12th plan may be revised downwards in the New Year, as part of its mid-term review exercise. Attributing the lower-than-expected growth to global factors, the deputy chairman Montek Singh Ahluwalia said the growth target could be lowered to around 7.5%.
On the back of positive news from the US, with the drop in jobless claims, and the holiday retail sales rising in November and December, the benchmarks back home closed in the positive.
The top two gainers among the other indices on the NSE were Realty (4%) and Smallcap (3%) while the bottom two losers were Auto (0%) and Energy (0%).
The top five among Nifty for the week were Punjab National Bank (7%); D L F (5%); Jindal Steel & Power (5%); BHEL (4%) and N M D C (4%) while the bottom five losers were Hero MotoCorp (2%); Maruti Suzuki (2%); Reliance Industries (2%); H D F C (2%) and Lupin (2%).
Of the 1,242 companies on the NSE, 983 companies closed in the green, 266 companies closed in the red while 31 companies closed flat.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
Inflation in urban areas shot up to 10.53% in November 2013 from 10.20% in October 2013, the...