Indian equity headline indices slumped Friday to finish the week with a profit/loss of 0.3 percent dragged by the likes of pharma and PSU stocks. Shares like Grasim, NTPC, IOC, Eicher Motors were the biggest losers, falling over 1.5 to 3 percent. Among the blue-chip scrips, HCL Tech and Tech Mahindra were the biggest gainers, rising nearly 3 percent.
For the week ended December 24, the 30-scrip Sensex and Nifty posted minor gains, closed 2 percent higher. Broader markets didn't fare better either, with midcap index declining for the second week in a row, down by 1 percent.
Meanwhile, FII selling continued to reduce sharply, majorly due to the festive holidays, a Motilal Oswal note said. Nifty is now trading at 19x FY23 P/E and is no longer in the expensive zone, it said.
"While the relief rally might continue for some more time, volatility cannot be ruled out on account of potential risk from Omicron variant and fragile global cues. We suggest long term investors take benefit of such volatility in the market and add on to their portfolios gradually at lower levels," the note added.
Sensex & Nifty Post Minor Gains While Midcap Index & Nifty Bank Slip
D-Street this week
The focus was on travel restrictions due to the Omicron variant of coronavirus and US economic data. A South African study suggested reduced risks of hospitalisation and severe disease in people infected with the Omicron variant versus the Delta variant. But the World Health Organisation's officials maintained it was too late to draw firm conclusions. Investors feared new restrictions implemented by the European countries would weigh on the global economic recovery.
Over in Asia, China announced 5 basis points cut in its one-year loan prime rate for the first time in 20 months. It decreased the rate from 3.85 percent to 3.8 percent in a bid to prop up the growth in a slowing economy.
While Asian peers surged higher on the news, Indian indices closed lower on Monday and gave up key levels. Sensex declined almost 1,200 points to 55,822 and Nifty settled 370 points lower at 16,600.
However, benchmarks rebounded Tuesday amid a positive trend in US and Asian stocks. The momentum continued Wednesday too as Sensex rose over 600 points and regained key levels. Meanwhile, on Wednesday the Reserve Bank of India's (RBI) monetary policy minutes showed RBI Governor Shaktikanta Das pitched for continued policy support to nurture revival in sectors expoosed to headwinds in the wake of spread of Omicron variant.
Data showed that US consumer confidence improved in December, suggesting the economy could continue expanding in 2022. It also showed more consumers planned to buy a house and big-ticket items in the coming year. Wall Street extended gains on the news and the momentum was bullish in the global stocks as well through Thursday. However, on Friday, the mood turned bearish and D-Street closed 0.3 percent lower.
Winners and losers
Nifty Bank declined for the second straight week, declining over 2 percent. The midcaps also declined for the second week, down over 1 percent.
28 of the Nifty stocks gave negative returns with Grasim, NTPC, BPCL, and HDFC being the top losers. Meanwhile, HCL Tech, Cipla, Tech Mahindra, UPL, and Wipro were the top Nifty gainers.
IT sector gained the most among all the indices, whereas the PSU Bank lost the most.
Top Sensex gainers and losers
|Stock||Weekly change (%)||Stock||Weekly change (%)|
|Tech Mahindra||4.97||Power Grid||-3.19|
|Hindustan Unilever||3.05||Axis Bank||-3.13|
|Dr Reddy's||2.71||Mahindra & Mahindra||-2.62|
|TCS||2.32||Kotak Mahindra Bank||-2.57|
|Bharti Airtel||1.63||HDFC Bank||-2.28|
Among midcaps, Firstsource, Godrej Consumers, SRF, Birlasoft, Coforge were the top gainers. Among the top losers were IndiaMART, Shriram Transport, Indian Hotels, AU Small Finance Bank.
(Edited by : Vijay Anand)
First Published: IST