The Bulls tightened the grip on Dalal Street in the week gone by on the
back of tumbling oil prices and fresh gains in Rupee. The market started with
an optimistic note buoyed by the Organization for Economic Cooperation and
Development’s statement that India’s economy is expected to grow close to 7.5%
in 2019 and 2020. Traders took some encouragement with report that the Reserve
Bank of India (RBI) Governor, Urjit Patel told law makers that the impact of
note ban was transient and the economy is robust. Expressing optimism over India''s growth, economic policy think-tank, the
NCAER in its Mid-Year Review of the Economy projected that Indian economy to
grow at 7-7.4% in the current fiscal (FY19).
As per the data released by CSO on Friday after market hours, the GDP
growth rate for Q2 FY19 slowed down to 7.1% as against 8.2% in Q1 FY19. The
moderation in the GDP growth rate in Q2FY19 is expected to be result of lower
consumption demand and weakness in services sector.
The sensex and Nifty closed the week with gains of 1213 points (3.47%)
and 350 points (3.32%) respectively;
FIIs & DIIs both were net buyers during the week.
Sector Wise Movement
On the sectoral front, BSE Information Technology index (up by 853 points
or 6.3%), BSE TECK index (up by 361 points or 5.3%), BSE Finance (up by 172 points
or 3%), BSE Fast Moving Consumer Goods (up by 310 points or 2.7%) and BSE Consumer Discretionary Goods &
Services (up by 94 points or 2.6%) were the top gainers,
Tata Consultancy Services (TCS) and Infosys were up by 8.6% and 7.5%
While BSE PSU (down by 185 points or 2.6%) , BSE Metal (down by 200
points or 1.7%) and BSE Oil & Gas (down by 175 points or 1.3%) were the top
losers on the BSE sectoral front,
Yes Bank and ONGC were
down by 13% and 7.8% respectively.
The market participants will be watching the
release of Nikkei Manufacturing PMI data on 3rd Dec, Nikkei Services
PMI on 5th Dec and will be reacting to Core sector and Q2GDP data
which was released on Friday after market hours. The market participants will
be eyeing the outcome of RBI’s fifth bi-monthly monetary policy meeting
scheduled on 5th Dec. Auto and cement stocks are expected to remain in
limelight during the next week as these companies would report their monthly
sales figures. On the geo-political front, the market will be keenly watching
the outcome of the G20 summit, where Modi,Trump and Abe will discuss major
issues of Global Interests.
The market is expected to be volatile. Traders
are therefore advised to act cautiously and invest in fundamentally good
companies on decline.