The Indian market started the week on pessimistic note after RBI
indicated that the CAD has widened to 2.9% of GDP in the second quarter of the
fiscal year compared to 1.1% in the year ago period, mainly due to a large imports.
Sentiments also remained dampened after the assembly poll results for five
states which showed the PM’s popularity in doubt into 2019 elections. However,
on the economic front the IIP data surged to 11-month high of 8.1% in the month
October 2018 against 4.5% in September 2018. Adding optimism, India’s retail
inflation based on CPI cooled down to a 17-month low of 2.33% in the month of
November 2018, as compared to 4.88% in the same month of previous year. The
traders also got some support when the WPI slowed down to 4.64% in November
from 5.28% in October. With uncertainty of state elections being over, there
was massive short covering as well as fresh buying which pushed up the major
The sensex and Nifty closed the week with gains of 290 points (0.8%) and 112
points (1%) respectively;
FIIs were the net seller whereas, DIIs were net buyers during the week.
Sector Wise Movement
As the sectoral indices were up this week, BSE Auto (up by 902 points or
4.5%), BSE PSU (up by 264 points or 3.9%), BSE Consumer Discretionary Goods
& Services (up by 139 points or 3.8%), BSE Oil & Gas (up by 444 points
or 3.4%) and BSE Consumer Durables (up by 686 points or 3.4%) were the top
gainers on the BSE sectoral front.
Hero MotoCorp and
Bajaj Finserv up by 9.5% and 9% respectively.
Investor will keep an eye on Foreign Exchange
Reserves and Indian bank loan growth data on 21st Dec. Market
participants will be tracking the movement in Rupee and FIIs investment
The market is expected to consolidate. Traders
are, therefore, advised to invest in fundamentally good companies on