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Weekly Market Review – for week ended Oct 12, 2018
Index Ratios (P/E)
12-Oct -18 05-Oct -18
Sensex 22.52 21.96
Nifty 25.33 24.95
Economic Statistics ($ in billion)
05-Oct-18 28-Sep-18 %Change
Forex Reserve
399.60 400.52 -.23%
BSE Sensex
Market Overview
The last week turned out to be a roller coaster week for the Indian equity
markets. Markets started the week on optimistic note on the back of Reserve
Bank of India (RBI) retaining the GDP growth projection for FY19 at 7.4%, in
its fourth Bi-monthly Monetary Policy Statement on 5th
Oct,2018. However, it
kept the Repo rate unchanged. Markets erased all of the gains on the very next
day and later got some support with the RBI’s decision to inject Rs 12,000
crore liquidity into the system through purchase of government bonds on
October 11 to meet festive season demand for funds. The Bears came back in
the action on Thursday and Indian equity indices registered sharp losses of over
2%. But it was the final session of trade which came out as a saving grace for
Indian markets that helped them to garner a weekly gain of over 1% on the
back of value buying at lower levels, decline in crude oil prices and modest
appreciation in Rupee Vs Dollar.
After 4 weeks of continuous negative closing, the Sensex and Nifty gained 357
points (1.04%) and 156 points (1.51%) last week to end at 34,734 and 10,473,
respectively.
The Mid Cap and Small Cap indices performed better and gained 2% and 2.3%
respectively.
DIIs were net buyers while FIIs continued to be net sellers during the week.
Sector Wise Movement
BSE Oil & Gas index was up by 1133 points or 9.3%, BSE PSU was up by 297
points or 4.5%, BSE BANKEX was up by 1202 points or 4.4%, BSE Consumer
Discretionary Goods & Services was up by 113 points or 3.3% and BSE Finance
was up by 171 points or 3.2%.
Yes Bank up by 14.6% and Eicher Motors up by 9%
On the losing side, the BSE Information Technology index was down by 1005
points or 6.6%, BSE TECK was down by 394 points or 5.2% and BSE Metal
was down by 58 points or 0.45%.
Tata Motors down by 17.7% and Bharat Petroleum Corporation (BPCL) down
by 12.7%.
Outlook for Coming week
The market participants will keep an eye on the Wholesale price index
(WPI) data for the month of September which is slated to be released on
October 15. Traders will be eyeing Q2 FY19 Corporate earning of the
important companies like India bulls Housing Finance, Indusind Bank,
Avenue Super Market, Crisil, Heromoto cop, Infosys, ACC and RIL etc.
scheduled to announce in the coming week and will trace the momentum
of rupee and FII investment. The market is expected to be volatile and
indices will move sideways. Traders are therefore advised to act cautiously
and invest in fundamentally good companies on decline.
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These views expressed in this report are personal views of the analysts. Satco Capital Market Ltd. shall not be responsible for
any loss arising from the use thereof. Also, SATCO does not have any investment exposure to any of the stocks covered in this
newsletter.
Disclaimer: This document has been prepared by SATCO Capital Market Ltd., a registered broker dealer, and is
being distributed to its clients. The information in the document has been compiled by the research department. Due
care has been taken in preparing the above document. However, this document is not, and should not be construed,
as an offer to sell or solicitation to buy any securities. Any act of buying, selling or otherwise dealing in any
securities referred to in this document shall be at investor’s sole risk and responsibility. This document may not be
reproduced, distributed or published, in whole or in part, without prior permission from the Company. @ Satco
Capital Markets Ltd.
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