Buying emerged on the last trading day of the week and helped the markets
to end in green. Market started the week on optimistic note on the back of
Commerce and Industry minister Suresh Prabhu’s statement that government is
making a strategy to make India 5 trillion economy. However, the geopolitical
tension between India and Pakistan took toll on equity market and volatility
increased. Nikkei India Manufacturing Purchasing Managers'' Index (PMI) rose to
54.3 in February, up from 53.9 in January. Markets participants shrugged off
the Central Statistics Office''s (CSO) data stating that India''s economic growth
slowed to a 5-quarter low of 6.6% in October-December period of this fiscal on
the back of lower farm and manufacturing growth and weaker consumer demand.
Traders also ignored the government''s data showing that eight core industries
grew at the slowest pace in 19 months in January as the production of crude
oil, refinery products and electricity contracted.
The Sensex and Nifty closed the week with gain of 192 points (0.54%) and
72 points (0.67%) respectively,
Mid Cap and Small Cap index gained 2.35% and 3.43% during the week.
Both FIIs & DIIs were the net buyers during the week.
Sector Wise Movement
On the sectoral front,
BSE Capital Goods (up by 506.41 points or 3.01%), BSE PSU (up by 191.11 points
or 2.87%), BSE Metal (up by 265.26 points or 2.49%), BSE Oil & Gas (up by
302.89 points or 2.22%), BSE Healthcare (up by 301.36 points or 2.22%) were the
top gainers on the BSE sectoral front while, BSE Realty was down by 21.67
points or 1.19% to 1796.11 was the only loser.
Traders will be keeping an eye on Nikkei
Services PMI data for the month of February which is scheduled to be released
on March 5, 2019. Nikkei India Services PMI dropped to a three-month low of
52.20 in January 2019 from 53.20, leading to softer upturn in business
With temporary cooling of geo-political
tension between India and Pakistan, market will once again focus attention on
domestic factors such as upcoming elections, fundamental and macro-economic
Mid & Small Cap witnessed buying in the
previous week and the same is expected to continue. However Nifty & Sensex
may continue to be range bound.
The market is expected to remain volatile, therefore,
advised to invest in fundamentally good companies on decline.