The last week turned out to be a roller coaster week for the Indian
equity markets. Markets started the week on optimistic note on the back of Reserve
Bank of India (RBI) retaining the GDP growth projection for FY19 at 7.4%, in
its fourth Bi-monthly Monetary Policy Statement on 5th Oct,2018.
However, it kept the Repo rate unchanged. Markets erased all of the gains on the very next day and later got some
support with the RBI’s decision to inject Rs 12,000 crore liquidity into the
system through purchase of government bonds on October 11 to meet festive
season demand for funds. The Bears came back in the action on Thursday and Indian
equity indices registered sharp losses of over 2%. But it was the final session
of trade which came out as a saving grace for Indian markets that helped them
to garner a weekly gain of over 1% on the back of value buying at lower levels,
decline in crude oil prices and modest appreciation in Rupee Vs Dollar.
After 4 weeks of continuous negative closing, the Sensex and Nifty gained
357 points (1.04%) and 156 points (1.51%) last week to end at 34,734 and 10,473,
The Mid Cap and Small Cap indices performed better and gained 2% and 2.3%
DIIs were net buyers while FIIs continued to be net sellers during the
Sector Wise Movement
BSE Oil & Gas index was up by 1133 points or 9.3%, BSE PSU was up by 297
points or 4.5%, BSE BANKEX was up by 1202 points or 4.4%, BSE Consumer
Discretionary Goods & Services was up by 113 points or 3.3% and BSE Finance
was up by 171 points or 3.2%.
Yes Bank up by 14.6% and Eicher Motors up by 9%
On the losing side, the BSE Information Technology index was down by 1005
points or 6.6%, BSE TECK was down by 394 points or 5.2% and BSE Metal was down
by 58 points or 0.45%.
Tata Motors down by
17.7% and Bharat Petroleum Corporation (BPCL) down by 12.7%.
participants will keep an eye on the Wholesale price index (WPI) data for the
month of September which is slated to be released on October 15. Traders will
be eyeing Q2 FY19 Corporate earning of the important companies like India bulls
Housing Finance, Indusind Bank, Avenue Super Market, Crisil, Heromoto cop,
Infosys, ACC and RIL etc. scheduled to announce in the coming week and will trace
the momentum of rupee and FII investment. The market is expected to be volatile and indices will
move sideways. Traders are therefore advised to act cautiously
and invest in fundamentally good companies on decline.