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Weekly roundup: Sensex extends gains for second consecutive week

Good corporate results from some key companies coupled with sustained foreign capital inflows kept the market tempo upbeat for the second straight week.

twitter-logoPTI | January 26, 2014 | Updated 18:01 IST
Sensex extends gains for second consecutive week

Notwithstanding week-end profit-booking washed out major part of early four days of gains due to comments from RBI Governor Raghuram Rajan about high inflation and interest rates, the S&P BSE benchmark Sensex finished the week up by another 70 points at 21,133.56.

The week saw that the sensex recorded an all-time closing peak of 21,373.66 on January 23 while the Nifty registered its second biggest closing of 6,345.65 on the same day.

Good corporate results from some key companies coupled with sustained foreign capital inflows kept the market tempo upbeat for the second straight week.

Shares of IT, Banking and Consumer Durable sectors firmed up on good buying enquiries while refinery, realty and power counters met with strong resistance at higher levels.

The sensex resumed higher on rise in IT stocks after Wipro announced encouraging third quarter earnings. Wipro announced a 27 pc jump in consolidated net profit for the third quarter.

Foreign Institutional Investors continued their buying during the week by investing net Rs 943.34 crores as per the SEBI's data including the provisional figure of January 24.

The BSE sensex opened higher at 21,083.53 and firmed up further to a high of 21,409.66 on good third quarter results from corporates but declined afterwards following comments from RBI's governor to finish at 21,133.56, still showing a gain of 69.94 points or 0.33 per cent. The sensex has gained by 375.07 points or 1.81 per cent during the two weeks.

The NSE 50-share Nifty moved up by 5.10 points or 0.08 pc to 6,266.75. .

However, the second rank counters underperformed the index, mainly due to profit-booking by wary retail investors at higher levels. The BSE-Midcap and Smallcap indices closed down by 0.49 per cent and 0.50 per cent respectively.

The sensex fell by 240 points on Friday after RBI Governor Raghuram Rajan's comments on inflation which dashed hopes of a rate cut in next week's monetary policy review.

A plunge in rupee value also hit investor sentiment.

Weak global cues due to poor Chinese manufacturing data put pressure on markets.

Mr. Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,"Indian equity markets traded from positive to range bound the better part of the week, before shedding most of its gain on the last trading day of the week. There were some good rallies seen in the Banking, IT and Pharma stocks during the week."

"In the absence of any fresh triggers during the week to drive some cues on either side, markets traded cautiously and is now keenly waiting RBI policy decision on interest rates due on Tuesday, 28th of January 2014. Sensex is going to trade in the range of 20910 to 21600 levels and Nifty is going to trade in the range of 6150 to 6390 levels," he added.

16 stocks out the 30-share sensex pack ended higher while remaining 14 finished lower.

Major gainers were Axis Bank 4.72 pc, Wipro 3.56 pc, Hindalco 2.33 pc, ICICI bank 2.23 pc, Sun Pharma 1.62 pc, TCS 1.24 pc and SSLT 1.00 pc.

However, Coal India dropped by 5.44 pc, BHEL 3.97 pc, Tata Power 3.13 pc, RIL 1.98 pc, Hero Honda 1.58 pc, M&M 1.48 pc and ONGC 1.43 pc.

Among the S&P BSE sectoral indices, IT firmed up by 1.43 pc, Teck 1.35 pc and Bankex 0.60 pc while Oil&Gas 1.47 pc, Realty 1.46 pc, Power 1.36 pc and Auto 0.62 pc.

The total turnover at BSE and NSE fell to Rs 10,185.66 crore and Rs 52,515.73 crore respectively from the previous weekend's level of Rs 10,799.08 crores and Rs 54,563.44 crores.

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