Weakness may set in after Tuesday

Last week (ended on 21^St February), we had mentioned the BSE 30-share Sensex and NSE’s 50-share Nifty may rise some more. Closing in the positive through out this week, the Nifty has closed the week at its highest since 23 January 2014.

The BSE Sensex closed the week that ended on 28th February, at 21,120.12 (up 419.37 points or 2.03%), while the NSE Nifty closed at 6,276.95 (up 121.50 points or 1.97%) for the week.

Ignoring the negative news from the US and the weakness on the Asian bourses, the domestic indices continued to close in the positive for the second consecutive session on Monday. The National Association of Realtors said existing home sales fell 5.1% in January to an 18-month low. Sales of standing homes have dropped in five of the past six months. Nifty closed at 6,186 (up 31 points or 0.50%).

Ahead of the February futures and options expiry, the Indian market on Tuesday witnessed a highly volatile session. However, the benchmarks managed to close in the green. Nifty closed at 6,200 (up 14 points or 0.23%).

The Bimal Jalan panel, which scrutinised applications for new bank licences, on Tuesday submitted its report along with shortlisted entities to the Reserve Bank of India (RBI). RBI had constituted the Jalan committee to examine the fit-and-proper criteria, business plans, corporate governance practices, etc, of applicants.

On Wednesday, the market performed under the news from the political front, where eleven regional parties formed an alliance on Tuesday to contest general elections, presenting themselves as an alternative to the ruling Congress party and the opposition Bharatiya Janata Party. While on the other hand, a report by Moody's analytical arm says that though downside risks to the economy have receded in recent months, it is likely that the growth engine will continue to sputter until 2015 even if "business-friendly" Narendra Modi becomes prime minister. Nifty closed at 6,239 (up 39 points or 0.62%).

The stock market remained closed on Thursday on account of Mahashivratri.

Federal Reserve Chair Janet Yellen at the semi-annual testimony on the economy and monetary policy repeated that the central bank is likely to maintain its strategy of gradually trimming asset purchases. She also repeated that the Fed's pledge to keep the benchmark interest low at least as long as unemployment stays above 6.5% and the outlook for inflation doesn't exceed 2.5%. While back home, BJP's prime ministerial candidate for this year's elections Narendra Modi made his reformist agenda and promised policy implementation in a speech on Thursday. The market opened up in the green and remained in the positive for the entire session. Nifty closed at 6,277 (up 38 points or 0.61%).

For the week, among the other indices on the NSE, the top two performers were Pharma (5%) and Auto (3%), while the worst two performers were Metal (3%) and Commodities (1%).

Among the Nifty stocks, the top five stocks for the week were BHEL (11%); Hindalco Industries (8%); Bank of Baroda (6%); Lupin (6%) and Axis Bank (6%), while the top five losers were NTPC (15%); Tata Steel (8%); NMDC (7%); Maruti Suzuki (5%) and Sesa Sterlite (4%).

Of the 1,381 companies on the NSE, 666 companies closed in the green, 658 companies closed in the red, while 57 companies closed flat.

Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were: