FINBLAB RESEARCH: INDIAN STOCK MARKET WEEKLY REVIEW
WOW! What a fantastic beginning for 2018 for the Indian Stock Market (markets gained 1993 points on Sensex and 540 points on Nifty till now) and a wonderful end for the January series (the Nifty rallied 5.65% and the Sensex rose 6.5%) On a weekly basis, the Nifty 50 index gained 175 points while the BSE Sensex gained 539 points. Here is Indian Stock Market Weekly Review (22 Jan 2018 to 26 Jan 2018) by Finblab.
As expected from the data last week, (Reliance Industry’s strong result and positive global cues) the party continued at the Indian Stock Market on Monday as benchmark indices ended at fresh record closing high. The BSE Sensex rallied 286 points and closed at 35,798 while the NSE Nifty jumped 71.50 points to 10,966. But the star performer of the day was the Nifty Bank index which continued its record-hitting spree and closing above 27,000 level for the first time in the history.
Historical Tuesday for the Indian Stock Market as both indices clocked fresh milestones – BSE Sensex closed above 36,000 and NSE Nifty above 11,000 marks for the first time in the history. A couple of favourable news that helps indices to close above historical level is (1) a surge in global markets, (2) IMF’s positive outlook on Indian GDP growth rate for this fiscal; from 6.7% to 7.4% in 2018 and 7.8% in 2019, (3) steady corporate earnings till now. The 30 shares Sensex ended up 342 points at 36140, while the 50 shares Nifty closed higher by 117.50 points at 11084.
After hitting record highs on Tuesday, the Indian Stock Market as expected witnessed a lacklustre trading session on Wednesday. Sensex, Nifty, and Bank Nifty traded in a narrow range right through the day. Though the Markets end flat it managed to hold key milestones. The BSE Sensex was up 16 points at 36156, while the Nifty was up 2.30 points at 11086. HDFC, ITC, and SBI were some of the heavy weights which helped Nifty closes at record highs for the sixth day in a row.
It was just the second day in last 15 days when Indian Stock Market closed in the red (16th January is last day when the market closed in a Negative zone) with the Sensex falling more than 100 points on Thursday. A sharp rise in oil prices (71 USD) and weak Asian cues due to losses in dollar cooled of the market mood on Thursday. It was the day of January expires as well. The BSE Sensex has broken the 36,000 level intraday, but last hour of positive trend helps it close above that psychological mark and closed at 36050 while NSE Nifty closed at 11070 down by 16 points.
The Indian Stock Market remains closed on 26 Jan because of Republic Day.
Indian Stock Market Weekly Review – A Week Gone By
Future Outlook –
The Indian Stock Market witnessed a strong rally in the first month of 2018 supported by strong domestic buying and good Q3 numbers till now. But from now onward all eyes set on the Union Budget which will be presented on February 1. Looking at the current scenario we can see further short covering in the upcoming week, which can take the Nifty higher towards 11,200 while on the downside Nifty can test 11000.
Positive News for the Markets:
- Steady Corporate Earnings so far
- Strong Buying from the domestic fund, FIIs also turned buyer since last couple of day
- Increase in GST revenue collection in December (86703 Cr v/s 80808 in November)
Negative News for the Markets:
- Rising Crude Oil prices (71 USD a barrel now)
- India 10-Year Bond Yield at 7.307
- Nifty trading above 27.5 PE (well above average PE)
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.