Evening Walk Down D-St: Blockbuster Friday! Market posts 1st weekly gains in 5 weeks
Indian market closed higher for the second day on August 9, posting first weekly gains in five weeks. The S&P BSE Sensex rose over 250 points, while the Nifty50 closed above 11,100 levels.
The final tally on D-Street: the S&P BSE Sensex up 254 points at 37,581 and the Nifty50 77 points higher at 11,109.
For the week, the Nifty rose 1.02 percent to post its first weekly gains after five weeks, while the Sensex closed with gains of 1.25 percent for the week ended August 9.
The index formed a bullish candle for the second consecutive day in a row but witnessed a selloff from its 200-days moving average placed at 11,166.
The index has decisively broken above its five-day exponential moving average placed at 11,018, which is a positive sign. It acted as a resistance for Nifty since July 8.
The market sentiment turned from negative to positive after reports suggested that the government was likely to announce relief measures for auto, MSMEs and financial markets soon. The announcements is likely to be bundled together, sources told CNBC-TV18.
In a meeting with the finance minister on August 8, corporates demanded a stimulus package of over Rs 1 lakh crore to kick-start the investment cycle and revive the economy, which is showing signs of a slowdown.
“The Nifty extended its rebound and posted decent gains, thanks to favourable local cues and supportive global markets,” Ajit Mishra, VP- Research, Religare Broking Ltd, told Moneycontrol.
The finance minister’s August 9 meeting with overseas investors to ease their tax concerns further boosted the sentiment, Mishra said.
In terms of sectors, the S&P BSE Auto index rose 1.99 percent, followed by the S&P Finance index, which gained 1.4 percent, and the S&P BSE Consumer Durables index was up 1.39 percent.
Top Nifty gainers include Indiabulls Housing Finance (up 13 percent), followed by Eicher Motors (up 4.6%), and Maruti Suzuki (up 3.3%).
Stocks in news
Shares of Coffee Day Enterprises were locked in lower circuit for ninth consecutive session on August 9 following concerns over corporate governance and rising debts.
Endurance Technologies rose 14 percent after the company reported strong set of numbers and decided not to go ahead with a plan to manufacture tyres for two and three-wheelers.
Shares of Page Industries were at a 52-week low of Rs 17,438.45, falling 4 percent after the company reported poor numbers for the June quarter.
Yes Bank fell 8 percent after the private lender announced the opening of qualified institutional placement at a floor price of Rs 87.90 per equity share with a proposed discount of not more than 5 percent.
Trade war worries and the prospect of early elections in Italy and Britain hit European markets, while the week’s search for safety set gold on course for its best week in three years. Japan’s yen was at an eight-month high, Reuters said.
Asian shares ended mixed amid fresh concerns over China-US trade war. Nikkei gained 0.44% at 20,684.82, while Kospi advanced 0.89% at 1,937.75.
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