Macro-data led positive momentum lifts equity indices (Market Review)

The key Indian equity indices -- the S&P BSE Sensex and the NSE Nifty 50 -- rose for the third straight week as a healthy macro-data led positive momentum enhanced the risk-taking appetite of investors.

However, profit booking, along with fears of higher non-performing asset (NPA) levels in the banking sector arrested the north-bound movement of the key indices during the truncated weekly trade ended on Wednesday.

The 30-scrip Sensitive Index (Sensex) edged higher by 151 points or 0.46 per cent to 32,584.35 points.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains. It rose by 43.4 points or 0.42 per cent to close at 10,210.85 points.

"Though the domestic market have suffered a bout of correction recently but have since rebounded and the Nifty is back above 10,000 mark on the back of encouraging domestic economic readings and optimism in major global markets which lifted sentiment," D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors, told IANS.

"The market also got strength following encouraging comments from the IMF chief Christine Lagarde -- that the Indian economy is on a solid growth track in the medium and long term due to the structural reforms undertaken by the government."

In terms of macro-data, India's annual rate of inflation based on Wholesale Price Index (WPI) in September eased to 2.6 per cent from 3.24 per cent in August.

Another major economic performance pointer showed that India's exports grew to $28.61 billion in September from $23.81 billion in August and $22.77 billion during the corresponding month of last year.

Notwithstanding the positive macro-data, the upward movement was halted on Wednesday after Axis Bank came out with its quarterly earnings results.

"The NSE Nifty had edged lower on Wednesday, retreating from record highs hit in the previous three sessions after a rise in bad loans at Axis Bank sparked concerns about the recovery of stressed assets in the country's banking sector," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

In terms of investments, provisional figures from the stock exchanges showed that FIIs offloaded stocks worth Rs 1,766 crore during the week. However, domestic institutional investors continued to pump-in funds and bought scrips worth Rs 1,985.99 crore.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 1,797.22 crore, or $276.76 million, during October 16-18.

On the currency front, the rupee depreciated during last week. It inched lower by 11 paise to close at 65.04 against the US dollar from its previous close at 64.93.

According to Deepak Jasani, Head - Retail Research, HDFC Securities on a sector specific basis metals, realty and oil and gas indices gained during the week ended October 18, whereas banking index plunged.

Last week's trade also concluded the Hindu Year -- Samvat 2073 -- which saw a stellar performance by the key Indian equity indices.

In Samvat 2073, the barometer index (BSE Sensex) gained 4,654 points or 16.6 per cent whereas the NSE Nifty 50 rose by 1,585 points or 18.4 per cent.

(Rohit Vaid can be contacted at rohit.v@ians.in)

--IANS

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