Taking cues from global markets, domestic key benchmark indices BSE Sensex and NSE Nifty retreated for the second straight week ended May 6. The BSE Sensex fell 378 points, or 1.48 per cent to 25,228.50 on May 6 from 25,838.14 on April 29. Likewise, the Nifty index on the National Stock Exchange lost 116 points, or 1.48 per cent to 7,733.45.
Among the 30 share index on the Bombay Stock Exchange, 23 stocks ended the week in red with Adani Ports and Special Economic Zone sliding the most — 18.17 per cent to Rs 238.25 on May 6. It was followed by ICICI Bank (down 7.80 per cent), Dr Reddy’s Labs (down 7.31 per cent), Tata Steel (down 6.02 per cent) and Oil & Natural Gas Corporation (down 4.41 per cent). On the other hand, Housing Development Finance Corporation, GAIL (India), Asian Paints and BHEL gained 7.24 per cent, 6.62 per cent, 2.34 per cent and 1.08 per cent, respectively.
Sectorwise, the BSE Metal index, BSE Bankex and BSE IT index dipped 3.60 per cent, 3.01 per cent and 2.54 per cent, respectively, in the past five trading sessions. All other sectoral indices also ended the week in red.
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities said, “Markets ended the week on a weak note, with sentiments marred by weak global markets.”
In the BSE 500 index shares such Blue Star, Jindal Poly, Welspun India, PVR, BEML, CPCL, SpiceJet, Eicher Motors, Emami and Marico are some companies which hit new 52-week lows during the week.
Foreign institutional investors offloaded shares worth Rs 116.58 crore between May 2 and May 6. Rupee depreciated by 0.36 per cent to Rs 66.58 this week.
During the week, HDFC reported 40 per cent rise in Q4 net profit numbers, while Eicher Motors and Hero MotoCorp reported 71 per cent increase in Q4 bottom line figures. MCX reported fall in Q4 PAT by 45 per cent and Godrej Properties Q4 net profit slid by 65 per cent.
IMF forecasted that India will be the fastest growing large economy in the world and projected a growth of 7.5 per cent for 2016-17, but back home political slugfest in the Parliament may lead to delay in reforms and passing of the key growth-oriented bills in the Rajya Sabha.
In the coming week, market will be eyeing important macro data, starting with Index of Industrial Production (IIP) numbers for March, scheduled on May 12. IIP grew at 2 per cent in February after remaining negative for three months with good show of core sector in March, expectation are high the industrial production too will see good improvement.
Consumer price index (CPI) inflation data too will be announced on May 12. CPI or retail inflation dropped to a 6-month low of 4.83 per cent in March. Retail inflation is now trending below the RBI’s CPI target of 5 per cent by the end of the current financial year.
Traders will also be reacting to earnings during the week, 8K Miles, HUL, MM Forgings, Century Ply, EID Parry, NIIT, Radico Khaitan, SKF, ZEEL, Asian Paints, Chamble Fertilizers, Havells, Kotak Mahindra Bank, South Indian Bank, Dr Reddy, Glenmark, Bank of Maharashtra, Merck, Nestle India, Mannapuram, Polaris, Zydus Wellness, etc.
For upcoming trading sessions, Jayant Manglik, president, retail distribution, Religare Securities said, “We feel markets have digested all the recent negatives and downside seems capped. Besides, lack of selling pressure in the last two trading sessions show early sign of exhaustion of bearish forces. We believe a strong rebound is round the corner but sustainability at higher levels would be crucial for resumption of uptrend else consolidation will continue.”
