The market rebounded with over 1 percent gain, breaking three weeks of losing streak, in a highly volatile week ended October 7 amid mixed global cues and a depreciating rupee.
The BSE Sensex climbed 764.37 points or 1.33 percent to close at 58,191.29, while the Nifty50 added 220.3 points or 1.28 percent to end at 17,314.65 levels at the close on Friday.
Among sectors, the BSE Metal index was up 5.7 percent, Capital Goods index 3.6 percent and the Realty index 3.4 percent. The FMCG index, on the other hand, shed 1 percent.
The BSE Smallcap index added 2.5 percent, Midcap 2 percent and the Largecap index 1 was up percent.
"Despite the SGX Nifty indicating a sluggish start, our markets opened with marginal gains on Monday by completely shrugging off global cues. However, since global developments over the previous weekend were a bit unfavourable, we failed to capitalise on this promising start, because things had to come to equilibrium and hence, we witnessed sustained selling throughout the session," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.
"The bulls made a remarkable comeback on the very next day to reclaim the 17,200 mark. In the latter half, although we tested 17,400 after a one-day break, the market saw some sluggishness to conclude the week above 17,300 as bulls managed to pocket more than a percent on a weekly basis," he said.
In this week, FIIs sold equities worth Rs 36.55 crore, while domestic institutional investors (DIIs) invested Rs 1,024.09 crore.
In this week, 69 small-caps added 10-39 percent led by Max Ventures and Industries, Xelpmoc Design and Tech, Mazagon Dock Shipbuilders, Jaiprakash Associates, Kuantum Papers, HBL Power Systems, Gayatri Projects and Deep Industries. However, losers were Reliance Communications, EPL, Cressanda Solution, Ingersoll Rand (India), AAVAS Financiers, Fino Payments Bank, Sindhu Trade Links and JM Financial.
However, losers were Reliance Communications, EPL, Cressanda Solution, Ingersoll Rand (India), AAVAS Financiers, Fino Payments Bank, Sindhu Trade Links and JM Financial.
The BSE 500 index rose 1.3 percent supported by the Mazagon Dock Shipbuilders, Cochin Shipyard, Mishra Dhatu Nigam, Poly Medicure, Mahindra CIE Automotive, JSW Energy, Delta Corp, Godfrey Phillips India, Indiabulls Housing Finance and Vakrangee.
The rupee touched a fresh record low of 82.42 in this week. It ended 98 paise lower to end at 82.32 a dollar on October 7 against its September 30 closing of 81.34.
“The domestic equity markets remained volatile throughout the week mainly in response to global developments. The likelihood of further aggressive tightening by the Fed and the other central banks, the continuing depreciation of emerging market currencies, the potential for an economic slowdown in the global economy etc. have been the major factors that have influenced the markets," said Joseph Thomas, Head of Research, Emkay Wealth Management.
"What has been impacting the markets most is the aggressive stance of the Fed which might expose the US economy to a full-fledged economic slowdown. Such an event may have consequences for the whole world."
"The geo political tensions which are mainly from Eastern Europe and the decision of OPEC to cut production and supply also challenged the markets. These factors will continue to hold their sway in the coming weeks too,” he added.
Where is Nifty50 headed?
Apurva Sheth, Head of Market Perspectives, Samco Securities
The upcoming week is going to be a roller-coaster ride as a host of important events are slated to release. Markets across the globe will be dominated by the FOMC’s minutes that will be released next week. While global investors will be keenly monitoring inflation figures in the United States and China, Indian CPI print will be a key domestic factor to monitor.
Further, the Indian IT companies will kick start the quarterly result season. Stock-specific swings will be evident, and when investors respond to earnings misses and beats, they should consider the company's long-term prospects rather than focusing exclusively on quarterly results.
Ajit Mishra, VP - Research, Religare Broking:
In the coming week, participants will be eyeing important macroeconomic data viz. IIP, CPI and WPI for cues. Besides, the week also marks the beginning of the earnings season with IT majors like TCS, Infosys, HCL Tech and Wipro announcing their numbers along with two other heavyweights i.e. Bajaj Auto and HDFC Bank during the week. Amid all, the performance of US markets, FIIs trend, and movement in currency and crude will also remain on their radar.
On the benchmark front, the 16,800-17,100 zone would act as a cushion in Nifty while a rebound towards the 17,580-17,900 zone may attract profit taking again.
Since all the sectors are witnessing traction on a rotational basis, the focus should be on the top-performing counters from the respective sectors and accumulate them on dips.
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