Weekly Market Review: Sensex fails to maintain 30K level on fag-end selling pressure

Mumbai: Stocks: The S&P BSE benchmark sensex failed to maintain 30K level and Nifty also tumbled from all-time high level due to fag-end selling pressure after the news of US striking Syria.

In this week, major indices trimmed their gains due to weak global cues. The Sensex and the Nifty gave up majority of the week s gains after the news of U.S. striking Syria came out on Friday.

Heavy distribution was observed in the final trading session of the week which shrunk the gains accumulated from the first two sessions.

Anupam Singhi, COO of William O’Neil India said, Despite the US strike news the Nifty and the Sensex ended the week with increments of 0.27 pct to 9,198.30 and 0.29 pct to 29,706.61 respectively. The sensex crossed 30K level during the week on April 5 after two years.

Market momentum during this week was underpinned by solid performance by the realty and energy shares. Top three sectoral indices in the week were Nifty Realty, Energy and Auto gaining 4.49 pct, 3.49 pct and 1.15 pct, respectively. On the negative end, Nifty IT, FMCG, PSU Bank and Pharma indices recorded losses over one pct, restricting the overall market movement.

On the economic front, Manufacturing PMI for the month of March increased to 52.5 from 50.7 in February. On the other hand Services PMI for March came at 51.5 following its level of 50.3 in February. These economic metrics have shown continuous improvement in the last three months after November s demonetization move.

Looking back at the market action in this week, the Indian market started the week and FY 2018 with a bang, as both the major indices reached their all-time closing highs.

After a trading off on Tuesday, markets witnessed cautious trading keeping the bi-monthly RBI policy review in view. However, the key indices extended gains on Wednesday in a range bound session.

On Thursday, frontline indices came under pressure right from the start of the session. The Monetary Policy Committee decided to leave the repo rate unchanged at 6.25 pct and hiked reverse repo rate by 25 basis points to 6 pct. However, after the Committee?s announcement, indices trimmed intraday losses to end marginally lower.

Equities experienced a steep fall on the last day of the week, tracking weakness from negative global cues. Global markets put up a depressed picture after the U.S. Fired cruise missiles into Syria.

Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth Rs 1,243.52 crore during the week, as per Sebi’s record including the provisional figure of April 7.

Among the 30-share Sensex pack, 15 stocks ended higher while remaining 15 closed lower during the week.

The total turnover during the week on BSE and NSE fell to Rs 16,104.66 crores and Rs 1,05,939.97 crores, respectively during the week from their last weekend’s level of Rs 52,203.39 crores and Rs 1,51,164.12 crores.

Among the major indices, S&P BSE Realty rose by 5.28 per cent followed by Captial Goods 4.92 pct, IPO 4.48 pct, Oil&Gas 2.92 pct, Consumer Durable 1.74 pct, Auto 1.01 pct, PSU 1.01 pct and Power 1.01 pct.

However, IT fell by 2.10 per cent, Teck by 1.54 per cent and FMCG 0.92 per cent.

Major gainers from the sensex pack were Larsen 6.90 pct, Reliance Ind 6.55 pct followed by Maruti 3.98 pct, Gail India 2.68 pct, Axis Bank 2.65 pct, Adani Ports 2.22 pct, Tata Steel 2.12 pct, HUL 1.29 pct and ONFC 1.05 pct.

However, Infosys fell by 3.87 pct, Sun Pharma by 3.21 pct followed by Coal India 3.02 pct, ITC 2.75 pct, Lupin 2.38 pct, BhartiAirtel 1.56 pct, SBI 1.09 pct, HDFC 1.07 per cent and Powergrid 0.99 per cent.

Bullion: Snapping its last week retreat, gold rebounded at the bullion market here today on emergence of renewed buying from jewellery stockists and retailers ahead of a busy festival and wedding season amid bullish global cues.

Moreover, the recent correction in gold prices attracted some buying opportunity for speculators to take long positions backed by increased offtake from retail consumers as well as wedding-related demand.

Silver also maintained its impressive surge for the four-week rise on the back of persistent demand from industrial users. In worldwide trade, Gold futures finished with gains yesterday, but ended well off a 5-mth high set earlier in the session, as strength in the US dollar and a rebound in stocks cut into the rally that followed US airstrikes on Syria.

A much weaker-than-expected March jobs report had helped the yellow metal to extend gains, but the yellow metal pulled back later as the dollar rose. Gold extended gains after the government said the U.S. economy created just 98,000 new jobs in March, well below the 185,000 consensus figure produced by a MarketWatch survey of economists.

A surge by the dollar saw gold and other metals lose altitude. A stronger U.S. Currency can weigh on commodities priced in dollars as it makes them more expensive to users of other currencies.

Gold was also underpinned by investors looking for safety after the United States fired cruise missiles at a Syrian air base, escalating tensions with Russia and Iran. While silver gave up earlier gains and booked a weekly decline of 0.5 per cent.

In New York Comex trade, gold for June contract rose to end at USD 1,257.30 an ounce compared to last weekend’s level of USD 1,251.20, while May silver delivery declined to settle at USD 18.151 an ounce from USD 18.256.

On the domestic front, standard gold (99.5 purity) resumed higher at Rs 28,710 per 10 grams from last Friday’s closing level of Rs 28,625 and later gained further to Rs 28,905 before settling at Rs 28,775, revealing a rise of Rs 150, or 0.52 per cent.

Pure gold (99.9 purity) also commenced higher at Rs 28,860 per 10 grams compared to preceding weekend’s level of Rs 28,775 and rallied further to Rs 29,055 before closing at Rs 28,925, showing a rise of Rs 150, or 0.52 per cent.

Silver ready (.999 fineness) opened higher at Rs 42,590 per kilo from last Friday’s level of Rs 42,365 and rose further to Rs 42,760 before ending at Rs 42,630, showing a rise of Rs 265 per kilo, or 0.63 per cent