Extending the northward journey for third straight week, the Indian
equity market closed higher this week. The Sensex and nifty started on weak
note on Monday as the overall exports in September contracted by 2.15% to
$27.95 billion mainly due to the base impact. The market made a strong recovery
very next day. Sentiment turned optimistic as the CPI softened to a year low of
3.31% in the month of October 2018. However, the WPI rose to 5.28% in October
2018 against 5.13% in September 2018. Traders discounted the news of India’s IIP
growth at the slowest pace in four month at 4.5% in September 2018, with poor
performance of mining sector and lower take off in capital goods. Final day of
the week, the market to closed high on the back of increase in India’s export
in the month of October 2018. The export grew by 17.86% to $26.98 billion in
October 2018 as compared to $22.89 billion in October 2017. Meanwhile, Fitch
indicated that India’s strong growth outlook continue to stand out among the
peers and its Real GDP for the current financial year 2019 forecasted to be at
The sensex and Nifty closed the week with gains of 0.8% and 0.9%
FIIs were Net buyers, while DIIs were net sellers during the week.
Sector Wise Movement
BSE Consumer Durables index (up by 614 points or 3.1%0 , BSE Finance (up
by 86 points or 1.5%), BSE BANKEX (up by 421 points or 1.4)%, BSE Fast Moving
Consumer Goods (up by 129 points or 1.1%) and BSE Capital Goods (up by 166
points or 0.9%) were the top gainers on the BSE sectoral front,
Bharti Airtel and Eicher Motor were up by 11.01% and 9.96% respectively.
While BSE Healthcare (down by 344 points or 2.3%), BSE Metal (down by 296
points or 2.3%), BSE Realty (down by 34.6 points or 1.9%), BSE Auto (down by
328.7 points or 1.6%) and BSE Information Technology (down by 166 points or
1.2%) were the top losers on the BSE sectoral front.
Yes Bank and Sun
Pharma were down by 16.2% and 13% respectively.
The market will be watching the outcome of the
RBI central board meeting which to be held on 19th Nov, were in the
Finance ministry seeking assurance on increase in liquidity and credit flow in
SME sector. There will be some buzz in the aviation sector, as the DGCA will
release the air passenger data for the month of Oct 2019. On economy front the
traders will be eyeing the CPI data for Agriculture/Rural laborers, as well as
Job data by EPFO which is slated to release on 20th Nov.
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.