Mixed global cues, macro-data kept equity markets sluggish (Weekly Review)

Some good news on the Indian economy, notably the 7.9 percent growth in the concluding quarter of the previous fiscal year, saw the Indian equities market end in the green once again, scaling a seven-month high in the interim.

But the gains were moderated by the profit booking on Friday and a weak rupee, despite the value buying during the week that had lifted the markets earlier in the week. The news of weak outlook for services industry also subdued the markets.

Consequently, the 51-scrip Nifty of the National Stock Exchange (NSE) was up 64.15 points or 0.78 per cent at 8,220.80 points, while the 30-scrip sensitive index (Sensex) of the BSE moved up 189.43 points or 0.71 per cent at 26,843.03 points.

"After a swift rally of 6 percent in the last 10 days, the markets found some some difficulty to bounce beyond the 8,250-point level of Nifty," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

"At the same time the global markets are rolling ahead in expectations of good economic data in the US which would support a rate hike by the Federal Reserve in the near-term," Nair said, adding a good forecast by the European Central Bank also sent positive signals.

On Monday, the key Indian indices had closed at their highest levels since October 2015, on the expectations of healthy quarterly results, higher crude oil prices and a strong macro-economic data. But the developments thereafter led them to close with modest gains.

Analysts said there was also caution ahead of the Reserve Bank of India's policy update on Tuesday.

Among the sector-specific indices of the BSE, metals was up 4.96 per cent, auto was up 3.76 per cent, public sector units was up 1.48 per cent, banking was up 1.35 per cent and IT was up 1.05 per cent.

But consumer durables shed 2.68 per cent, healthcare lost 2.63 per cent, capital goods lost 1.10 per cent, realty lost 0.78 per cent and oil and gas lost 0.25 percent.

Individually, Tata Motors was the top gainer, up Rs 50.40 at Rs 403.50, followed by Coal India, up Rs 27.60 at Rs 281.35; Adani Ports up Rs 12.80 at Rs 191.55; Axis Bank, up Rs 29.70 at Rs 513.10 and NTPC, up Rs 7.90 at Rs.139.90.

Sun Pharma, on the other hand, led the losers, down Rs 87.25 at Rs 825.50, followed by BHEL, down Rs 10.25 at Rs 128.20; GAIL, down Rs 9.30 at Rs 379.40; Lupin, down Rs 31.65 at Rs 1480.70 and Cipla, down Rs 8.55 Rs 473.65.

The week also saw significant inflows of foreign funds which, too, buoyed the markets. As per official data, foreign funds purchased net stocks worth Rs 2,607.78 crore during the week under review, while domestic institutional investors sold scrips worth Rs 494.95 crore.

Figures from the National Securities Depository Ltd showed that foreign portfolio investors were net buyers of equities worth Rs 2,218.53 crore, or $330.64 million between May 30 and June 3.

(Porisma Pompi Gogoi can be reached at porisma.g@ians.in)

--IANS

ppg-ap/vm