The market closed with a slight gain in the week ended April 8 amid volatility. FIIs remain net sellers following US Fed’s indication of tough monetary policy. Apart from this, rising bond yields in America and increasing sanctions on Russia also showed their effect. However, as expected, it was decided not to increase the interest rates in the RBI policy meet. This gave support to the market. Apart from this, the news of the merger of HDFC twins last week also supported the market.
Last week, the BSE Sensex closed at 59,447.18, up 170.49 points, or 0.28 per cent. Nifty 50 closed at 17,784.35 with a gain of 113.9 points or 0.64 per cent.
Looking at the sectoral indices, BSE Power index rose 9 percent, BSE FMCG index by 4.4 percent and Metal index by 4 percent. On the other hand, BSE’s Information Technology Index slipped 2 per cent.
In terms of market value on the BSE Sensex, the biggest gain was seen in Hindustan Unilever. After this, the market value of ITC, ICICI Bank and Asian Paints increased the most. On the other hand, Infosys, Tata Consultancy Services and Reliance Industries saw the biggest decline in the market value. (Disclaimer: Network 18 Media & Investment Ltd. is owned by Independent Media Trust. Its beneficiary company is Reliance Industries.)
Foreign Institutional Investors (FIIs) bought equity worth Rs 6,337.53 crore. Domestic institutional investors (DIIs) also bought equity worth Rs 4,161.54 crore.
Shrikant Chauhan of Kotak Securities Says that the market closed flat last week. Market focus is on corporate developments and Q4 FY22 results season. Meanwhile, concerns over rising interest rates have put some pressure on the market mood. During the last week, the news of the merger of HDFC and HDFC Bank was very important news. On week-on-week basis, smallcap, capital goods and midcap were the biggest gainers.
In the last week, there have been about 166 smallcap stocks in which there has been an increase of 10-40 percent. They include Swan Energy, Shree Renuka Sugars, Suryoday Small Finance Bank, BLS International Services, OnMobile Global, Zuari Agro Chemicals, Railtel Corporation of India, Ramco System and Jaiprakash Associates.
On the other hand, Everest Industries, GRM Overseas, Future Retail, TeamLease Services, V-Mart Retail, AVT Natural Products and Expleo Solutions were among the top losers.
How will the market move next week
Yesha Shah of Samco Securities It says that next week the market will be watching inflation data and fourth quarter results. Global investors will keep an eye on the inflation data of America and China. At the same time, the eyes of domestic investors will be on India’s CPI data. He further said that higher than expected inflation data can show immediate reaction in the market. IT companies will be in the headlines in the Indian market as the results of 2 major IT companies are going to come next week. It is believed that the revenue of IT companies may see a slowdown on a quarterly basis. D Street will be eyeing IT companies’ margins, revenue guidance and attrition numbers.
Next week is going to be very action packed. Volatility will remain in the market. In such a situation, investors are advised to bet on such stocks which are fundamentally sound and have low risk.
Market saw slight gains in volatile week, Midcap and Smallcap outperformed
Sharekhan’s Gaurav Ratnaparkhi It says that a candle like Nifty Doji pattern has been formed on the weekly chart. Which is indicating a slight slowdown after the recent rally from the 17000 level. The Daily Momentum Indicator is also showing signs of exhaustion in the market. The overall structure indicates a near term consolidation in the range of 17500-18000 in the coming weeks.
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