Bulls made a strong come back last week. The market
started the week on optimistic note as RBI said that it will inject Rs 400
billion into the system in November through purchase of government securities
to meet the festive demand. Market however, trimmed the early gains in the very
next session, as traders anticipated the higher oil prices can hurt the
consumers. Bulls came back again as India jumped 23 places to rank 77th among
190 nations in ease of doing business. On the economic front, growth of eight
core infrastructure industries slowed to four-month low of 4.3% in September
2018, as production of crude oil and natural gas declined. However, the Nikkei
India Manufacturing Purchasing Managers'' Index (PMI) - a composite single-figure
indicator of manufacturing performance - improved to 53.1 in October from 52.2
in September. It was the final session of trade which took markets above their
respective crucial levels, with the Finance Ministry''s statement that GST
collections in October 2018 crossed the Rs 1 lakh crore marks, after a gap of 5
months. The decline in crude oil prices and marginal appreciation in value of rupee
against dollar also contributed to the positive sentiment of the market.
The sensex and Nifty closed the week with gains of
5% and 5.2% respectively; the Mid and Small Caps performed relatively better
and recorded gains of 7.3% and 6.4% respectively.
DIIs were Net buyers, while FIIs were net seller during the week. Sector Wise Movement
BSE Capital Goods was up by 1719.8 points or 10.5%, BSE Consumer
Durables was up by 1465.6 points or 8%, BSE Realty was up by 123.7 points or
7.8%, BSE Auto was up by 1399.1 points or 7.2% and BSE Bankex was up by 1857.1
points or 6.8% were the top gainers on the BSE sectoral front.
Tata Motors up by 15.1% and State Bank of India (SBI) up by 14.3% were
the top gainer on Nifty for the week.
Coal India down by 7.3% and Kotak Mahindra Bank down by 4.4% was the top
loser of the week on Nifty.
The coming holiday truncated week, traders would be
awaiting for the release of the Nikkei Services PMI data, after reacting to
Nikkei Manufacturing PMI data and core sector data. Nikkei Services PMI data
for the month of October will be released on November 5.The Traders will be
reacting to the important results of Andhra Bank, BEML, Cadila Healthcare,
ONGC, Ajmera Realty & Infra India, Atul Auto, Bosch, Fortis Healthcare,
GAIL India, Inox Wind, Natco Pharma, NDTV, Orient Cement, Dr. Lal PathLabs, Manappuram
Finance, E.I.D.-Parry (India), Indian Bank, India Cements, Mold-Tek
Technologies among others.
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.