The indices will move up as long as the rupee remains stable, but the gains in Nifty above 5,700 may be limited
Raghuram Rajan the new governor of Reserve Bank of India (RBI) announced his plans for strengthening the battered rupee. This helped markets close positive for the second consecutive week. The Sensex rose 650 points (or 3.49%) to close this week at 19,270 while the Nifty settled at 5,680, rose 209 points (or 3.81%).
The BSE 30-share Sensex closed positive on Monday, ignoring negative news of the GDP growing a mere 4.4% in Q1, the slowest growth since the January-March quarter of 2009. The HSBC Manufacturing PMI, sank to 48.5 in August from 50.1 in July, the lowest reading since March 2009.
On Tuesday, Sensex broke the trend of four days of consecutive gains and ended in the negative, on the rising fears about a potential US military strike on Syria, which may lead to steep rise in the crude oil prices. The rupee reached closer to its all time low of Rs68.80 per US dollar.
Sensex rose on Wednesday despite news of the HSBC Services PMI slipping to 47.6 in August, the weakest since April 2009, from 47.9 in July as new business dried up. Next day, steps taken by RBI to stabilize the currency and the measures to reassure investors by the new governor of RBI helped the market to close positive for the second consecutive session. The positive move continued on Friday when Sensex closed above 19,000.
The top two gainers among the other indices on the NSE were Bank Nifty (10%) and Finance (8%) while top two losers were IT sector (2%) and Media (1%).
Among the Nifty-50 stocks, the top five gainers were BHEL (20%), I C I C I Bank (19%), IndusInd Bank (16%), ONGC (16%) and Jaiprakash Associates (15%) while the top five losers were Sesa Goa (7%), Tata Power (7%), Hero MotoCorp (6%), Infosys (2%) and H C L Technologies (2%).
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:
Top ML sectors |
| Worst ML sectors |
|
Oil & Gas | 13% | Media | -1% |
Banks | 8% | Consumer Products | -1% |
Sugar | 8% | Shipping | 0% |
Con_EPC_Infra | 7% | Software & IT Services | 0% |
Financial Services | 5% | Textiles | 0% |
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