Domestic stock markets finished the holiday-shortened week with a gain of more than one per cent, with the benchmark indices S&P BSE Sensex and NSE Nifty climbing up and down on two days each. The financial markets remained closed on Tuesday for Dussehra. The Sensex index added 453.77 points for the week, marking a rise of 1.20 per cent. The broader Nifty benchmark rose 1.17 per cent (130.3 points), after declining 2.93 per cent the previous week. The week was marked with earnings announcements from IT majors Tata Consultancy Services (TCS) and Infosys, and macroeconomic data.
Financial and metal sectors led the gains with the Nifty Bank index - comprising stocks of 12 major lenders in the country - rising 1.12 per cent, after declining 7.18 per cent the previous week.
|Nifty Financial Service||+1.40%|
|Nifty Private Bank||+0.79%|
|Nifty Fast-Moving Consumer Goods||+0.29%|
|Nifty PSU Bank||-0.32%|
Top Nifty Gainers/Losers For The Week
|Stock||Closing price on October 11 (in rupees)||Weekly change|
Bharti Airtel shares jumped after Reliance Jio said it would end free voice calls on its network. The stock was the top percentage gainer for the week on the 50-scrip index.
Analysts expect the markets to extend gains in the coming week, which would be the first full trading week of the month.
"The trend should be bullish in the week ahead with a 500-point rally to touch 11,800 possible for the Nifty. Going forward, the Nifty is expected to clock an all-time high by Diwali," AK Prabhakar, head of research at IDBI Capital, told NDTV.
This week, TCS reported a net profit of Rs 8,042 crore for the second quarter of current financial year, missing analysts' estimates. Shares fell as much as 3.76 per cent to hit Rs 1,929 apiece on the BSE on Friday, before trimming most of those losses to end the session at Rs 1987.05.
Infosys reported a net profit of Rs 4,037 crore for the July-September period, matching analysts' estimates. The company said it expected its revenue to grow 9-10 per cent on a constant currency basis in the current financial year, higher than its previous forecast of 8.5-10 per cent. Infosys shares ended 4.19 per cent higher at Rs 815.70 apiece on the BSE ahead of the earnings announcement on Friday.
"Infosys came out with good results which were in line with market expectations. Management also revised its full year guidance upwards which would life the market sentiments on Monday," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services.
Analysts say the release of more earnings reports along with official data on inflation will be watched closely. Large cap companies including Hindustan Unilever, ACC and Wipro are due to report their quarterly earnings in the coming week.
"We certainly believe corporate number will largely guide mood of the market for the coming week," said Jimeet Modi, founder and CEO, SAMCO Securities.
"Hopefully this earning season will revive investors' sentiments in the market and will bring back long forgotten bull spirit of foreign portfolio investors (FPIs)," he added.
Foreign investors have net sold equities worth Rs 4,955.29 crore ($698.22 million) so far this month as against a net purchase of Rs 7,548 crore last month, data from the National Securities Depository showed.
Official data on wholesale as well as retail inflation will be out on Monday.
Moreover, any developments on the US-China trade front will also be monitored for global cues, according to analysts.
A trade war between the world's largest two economies has stoked fears of a global recession and raised concerns about global oil demand.
US President Donald Trump and other US officials on Friday signalled good news was coming in trade talks with China, while Beijing indicated it was open to a "partial" deal that would avoid a planned hike in tariffs on its goods, news agency Reuters reported.