Bulls continue to dominate the market for the seventh consecutive week
and ended the first week of FY20 above crucial levels. Market started the week
on optimistic note aided by RBI’s data showing the Forex reserves continued to
surge for third week in a row. Sentiment also got boosted as the collection of GST
recorded high of Rs. 1.06 lakh crores in March up from Rs. 97,247 crores in the
previous month. Market participants ignored RBI’s data that the country’s CAD
widened to 2.5% of the GDP in the third quarter of FY19 as compared to 2.1% in the
last year, primarily because of the higher trade deficit. Investor also paid no
heed towards Commerce Ministry Data showing that the growth in 8 core sector industries
slowed down to 2.1% in Feb,19 as compared to 5.4% in Feb,18. However, there was
profit booking in two consecutive sessions as traders turned anxious after the
private report published by Skymet regarding India’s coming monsoon might be
less than normal. Traders failed to sense any relief from RBI’s repo rate cut
by 25bps to 6%. But rally continued in the last trading session of the week, as
the Finance Secretary said that the government is close to meeting fiscal
deficit target of 3.4% for 2018-19.
The Sensex and Nifty closed the week with gain of 189 points (0.49%) and 43
points (0.37%) respectively, manily due to continuous FIIs buying.
Mid Cap and Small Cap indices recorded gain 0.19% and 0.12%, respectively,
during the week.
FIIs continued to be net buyers whereas DIIs were net sellers during the
Sector Wise Movement
BSE Metal (up by 353.8 points or 3.1%), BSE Realty (up by 61.9
points or 3%), BSE Auto (up by 503 points or 2.7%), BSE
Information Technology (up by 274.6 points or 1.8%) and BSE TECK
(up by 118.6 points or 1.6%) were the top gainers,
Godrej Properties was
up by 20%
While BSE Oil & Gas (down by 428.9 points or 2.8%), BSE
Consumer Durables (down by 400.6 points or 1.7%), BSE PSU
(down by 111.7 points or 1.5%), BSE BANKEX (down by 389.7 points
or 1.1%) and BSE Fast Moving Consumer Goods (down by 113.3 points
or 0.97%) were the top losers on the BSE sectoral front.
Reliance Comm was down by 21%
Traders would be waiting for the release of
the industrial production (IIP) data for the month of February on April 12.
With the official start of the earnings
season, market-men will be eyeing the Q4FY19 results announcements of Delta
Corp, Hathway Bhawani Cabletel & Datacom, Bajaj Consumer Care, Infosys,
Tata Consultancy Services, etc.
We expect the market to witness healthy
consolidation at the current levels. Investors are, therefore, advised to
invest in fundamentally good companies on every decline.