Markets Weekly: Sensex, Nifty post marginal gains as US Fed maintains status quo on rates; Rupee jumps 0.34%

Benchmark indices BSE Sensex and NSE Nifty ended the week with marginal gains after US Federal Reserve left key interest rates unchanged. Markets also got a boost from reports that foreign institutional investors poured over Rs 5,500 crore into the capital markets within a fortnight this month. For the week ended September 23, the 30-share index closed 69.19 points, or 0.24 per cent, up at 28668.22, while the Nifty 50-index jumped 51.70 points, or 0.59 per cent, to 8831.55.

In the Nifty 50-index, Hindalco, Eicher Motors, Aurobindo Pharma, Bharti Infratel and YES Bank gained 8.17 per cent, 7.20 per cent, 6.53 per cent, 5.46 per cent and 5.28 per cent, respectively. On the other hand, Axis Bank, Idea Cellular, Lupin, ITC and Tech Mahindra slipped by 7.60 per cent, 3.46 per cent, 3.27 per cent and 2.78 per cent, respectively, during the week.

Barring the BSE IT index (down 0.26 per cent) and FMCG index (down 0.26 per cent), all other sectoral indices ended the week in green. The BSE Metal index, Oil & Gas, Telecom, Realty and Consumer Durables index gained 3.46 per cent, 3.08 per cent, 2.02 per cent, 1.92 per cent and 1.42 per cent, respectively, in the past five trading sessions.

Dipen Shah, senior vice-president and head PCG research, Kotak Securities said, “Markets closed at the day’s low on Friday even as they were largely unchanged for the week. Markets are consolidating at higher levels. While the Fed decision did provide upside bias to the markets during the week, relatively higher valuations kept markets ranged.”

During the week markets also got some support from reports that country’s current account deficit (CAD) narrowed to $0.3 billion, or 0.1 per cent of GDP, in the first quarter of 2016-17. This is significantly lower than $ 6.1 billion or 1.2 per cent of GDP in Q1 of 2015-16 on account of lower trade gap. However, profit booking on Friday cut some weekly gains.

Foreign Institutional Investors (FIIs) remained net buyers in the domestic equity segment in the week with gross purchases of Rs 29,773.57 crore and gross sales of Rs 26,252.59 crore, leading to a net inflow of Rs 3,520.98 crore. They stood as net buyers in the debt segment with gross purchases of Rs 5,386.90 crore against gross sales of Rs 5149.29 crore, resulting in a net inflow of Rs 237.61 crore, according to the data available with corporate database Ace Equity. Indian rupee appreciated by 0.34 per cent to 66.65 on September 23 from 66.88 on September 16.