A close below 5,750 may signify a sharp decline
The holiday shortened week ended in the positive. This week saw the US government facing partial shutdown and the news making rounds that this may lead to possible postponement of the cut back of the stimulus.
The BSE 30-share Sensex rose 189 points (or 0.96%) to close the week at 19,915.95, while the Nifty settled at 5,907.30, up 74 points (or 1.27%).
On Monday, the market opened weak and ended in the negative for the second consecutive session, ahead of the worries of a possibility of the US government being headed for a shutdown. The US Congress failed to agree on a new budget. Market awaited the data of current account deficit (CAD) on Monday anticipating it to widen to as high as 5.4% during the June quarter.
The Reserve Bank of India (RBI) plans to infuse Rs10,000 crore into the system through open-market operations next week to ease liquidity constraints brought some relief on the bourses and the Sensex closed in the positive on Tuesday.
Wednesday markets were closed. On Thursday, the market opened with full optimism and edged higher gradually. It ended in the green for the second consecutive session. The possible postponement of the cut back on the stimulus helped the Sensex continue in the positive. Fitch Ratings has warned India that any slippage on its policy front would have negative implications for its ratings, currently at the lowest investment grade. It also cautioned India that there is much capital still left which could outflow from the country.
On Friday, the Sensex continued with the third day of upmove. Activity at Indian services companies shrank at the fastest pace in more than four years last month. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, slipped from 47.6 in August to 44.6 in September, its weakest since April 2009.
Jobless claims rose to 308,000 in the week ended September 28, from a revised 307,000, the Labor Department said. US payrolls data won't be released as scheduled today because of the shutdown. The department said that an alternative date for the September payrolls report and jobless rate hasn't been scheduled.
Back home, among the other indices on the NSE, the top two gainers were Realty (4%) and Bank (3%) while the bottom two losers were FMCG (2%) and PSE (1%).
Among the Nifty-50 stocks, the top five gainers for the week were Ranbaxy Laboratories (8%); Bajaj Auto (6%); Axis Bank (6%), DLF (6%) and IndusInd Bank (5%); while the bottom five losers were NTPC (4%); Oil & Natural Gas Corp (4%); ITC (2%); Hindustan Unilever (2%) and NMDC (2%).
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:
Top ML sector |
| Worst ML sector |
|
Textiles | 9% | Energy | -4% |
Real Estate | 8% | Oil & Gas | -3% |
Consumer Durables | 5% | Consumer Products | -2% |
Lifestyle & Leisure | 4% | Steel | -2% |
Cement | 4% | Hotels | -1% |
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