Markets Weekly: Sensex rallies 265 points, Nifty settles above 8850; Rupee climbs

Benchmark indices BSE Sensex and NSE Nifty extended their rally in the holiday-truncated week with gains of over 0.50 per cent as market sentiment remained bullish after slower than expected US jobs data in August dimmed hopes of interest rate hike by the US Federal Reserve this month. For the week ended September 9, the 30-share index advanced 265.14 points, or 0.93 per cent to 28,797.25 from 28,532.11 on September 2. The 50-share Nifty index also gained 57.05 points, or 0.65 per cent, to 8866.70 from 8809.65 during the same period. Domestic equity markets kicked off the week on buoyant note with Sensex and Nifty hitting their fresh 52-week high as traders took encouragement with report that growth in India’s service industry accelerated to its fastest pace in more than 3-1/2 years in August. However, profit booking in the last day of week minimised some gains.

Among the 51-components in the Nifty index, Bharat Heavy Electricals Ltd gained the most — 12.82 per cent, followed by Oil & Natural Gas Corporation (up 6.81 per cent), Tata Steel (up 5.59 per cent), ICICI Bank (up 4.86 per cent), Maruti Suzuki (up 4.64 per cent). On the other hand, YES Bank, Tata Consultancy Services, Tech Mahindra, UltraTech Cement and Tata Power slipped by 8.13 per cent, 6.47 per cent, 2.95 per cent, 2.70 per cent and 2.53 per cent, respectively.

Jimeet Modi, chief executive officer, SAMCO Securities said, “Markets opened the week higher reacting to diminishing hopes of US interest rate hikes in the September meet on release of weaker employment data. ECB left the key rates unchanged giving further boost to liquidity driven rally. The sentiments are bullish everywhere although high valuation concerns are voiced across the street.”

Barring the BSE IT (down 1.88 per cent) and TECk index (down 1.44 per cent), rest all other sectoral indices also ended the week in green. The BSE Realty index and BSE Auto index gained 5.67 per cent and 2.40 per cent, respectively.

Foreign Institutional Investors (FIIs) stood net buyers in in equity segment in the week with gross purchases of Rs 19,510.26 crore and gross sales of Rs 16,873.45 crore, leading to a net inflow of Rs 2,636.81 crore, according to the data available with NSDL. Rupee appreciated by 29 paise to 66.55 against dollar on September 9 from 66.84 level against dollar on September 2, as per the data available with RBI.

Other Asian peers, except Seoul, closed the week on firm note after weaker-than-expected US service sector data bolstered expectations that the Federal Reserve will refrain from raising interest rates at its September meeting.