Weekly Wrap: Earnings Optimism And Short-Lived Record High
The S&P BSE Sensex scaled a fresh record high this week. But that was short-lived.
The 31-share index rose 2.83 percent this week to end at 40,165.03 and the NSE Nifty 50 rose 2.65 percent to close at 11,890.60. The benchmark index of the Bombay Stock Exchange surpassed its previous record of 40,312 on Thursday to hit 40,392.22.
Besides, on Wednesday, the S&P BSE Sensex's 50-day moving average surpassed the 200-day moving average, forming a golden cross. The pattern had earlier occurred on Jan 18, 2019.
“The week was much decisive on the back of positive global cues and the earnings from a few companies that boosted the sentiment,” Epic Research's Chief Executive Officer Mustafa Nadeem said in an emailed statement. One-to-two sectors, however, witnessed profit-booking, he said.
The government reviewing the long-term capital gains tax and dividend distribution tax to attract a large chunk of foreign investors in the equity market also had a positive impact, he said.
Foreign investors pumped in Rs 11,103.95 crore into India's equity market between Tuesday to Thursday, according to data available on National Securities Depository Ltd. Overseas investors poured in Rs 533.37 crore on Friday, according to the provisional data available on the National Stock Exchange.
Meanwhile, domestic investors sold Rs 828.35 crore worth of equity shares this week.
Nadeem expects public sector companies, metals and auto stocks to outperform in the coming week. “The buying momentum that has picked up in the mid and small caps, which added almost 5-7 percent in the last month, is expected to continue to perform,” he said.
All the 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Media Index's 11.1 percent gain.
How The Broader Market Performed
The broader market represented by the NSE Nifty 500 Index advanced nearly 3 percent this week, led by the rally in ITD Cementation Ltd., Tata Motors Ltd. and Dish TV India Ltd.
How The Asian Currencies Performed This Week
The Indian rupee ended higher for the second consecutive week. The home currency appreciated 0.1 percent during the period to end at 70.81.
Big Talking Points This Week
- Ten investing lessons from Samvat 2075.
- 50 companies to watch in 2020.
- India's core industries contract the most in 14 years in September.
- Maruti Suzuki posts first jump in sales in nine months.
- The Fed puts monetary policy on pause.
- Q2 Nifty Earnings: Best performance in more than two years.
- U.K.'s election battle begins as Johnson, Corbyn test slogans.
- How governments use immigration to boost their economies.
- How to spur growth in the world's major economies.
- GST collection for September rises to Rs 95,380 crore.
Key Earnings Announced This Week
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Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
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'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
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Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
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The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
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Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
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Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
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High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
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Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
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Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
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Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
