Market rally fifth straight week, gains 424 pts

25 Feb 2017

Market rallied for the fifth straight week, over five-months highs, as the benchmark Sensex gaining 424.22 points to to close 28,892.97, while the broader Nifty ended above the psychological 8,900-level.
Stocks specific action drove the stock momentum during the holiday-truncated week as traders executed buying spree on sanguine reports of coporate shares buy-back, merger and acquisition news as well as Index heavy-weights Reliance Jio stealing the limelights turning the investors bullish.
Investors opting for long positions, and covering-up of short positions due to February month's derivatives expiry week and globally, odds over US Federal Reserve hiking interest rates in its March policy meet also spurred the stock momentum.
IT counters rallied after bellwether TCS announced a whopping Rs 16,000-crore share buyback programme in its board- meeting on February 20.
Telecom shares zoomed following reports of Vodafone India and Aditya Birla Group firm Idea Cellular are likely to finalise their merger within a month, creating India's largest telecom firm. while, Bharti Airtel surged on news of its acquisition of Telenor India for an undisclosed sum. I
The market did see selling pressure in telecom space on ruthless competition after RIL Chairman Mukesh Ambani unveiled Reliance Jio's new voice and data offers, including 20 per cent more data than any rival from April 1, however speculator got together the act after the announcement that the Jio will begin charging for data services from April.
Metal stocks jumped after the government extended anti-dumping duty on import of certain steel products from China for five years.
The Markets was closed on Friday, on account of 'Mahashivratri'.
The Sensex resumed higher at 28,481.91 and zoomed to 29,065.31 and a low of 28,419.27 before closing at 28,892.97, showing gain of 424.22 points or 1.49 per cent.
It gained 1,858.47 points four weeks.
The NSE 50-share Nifty also surged by 117.80 points or 1.34 per cent to 8,939.50 after moving in a range of 8,982.15 and 8,809.80.
Barring Power sector, buying was led by Oil&Gas, Metals, Consumer Durables, IPOs, Banking, Realty, IT, Teck, PSUs, Auto, Capital Goods, HealthCare and FMCG.
Substantial gains were also seen in secondline shares of midcap and smallcap companies shares.
Meanwhile, foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) sold shares worth Rs 1,309.70 crore during the week, as per Sebi's record including the provisional figure of February 23.
In the broader market, The BSE Mid-Cap index rose 109.22 points or 0.81 per cent to settle at 13,532.11. The BSE Small-Cap index gained 120.14 points or 0.89 per cent to settle at 13,587.78. Both these indices underperformed the Sensex.
Among sectoral and industry indices, oil&gas rose by 3.33 percent, followed by metal 2.25 per cent, consumer durables 2.12 per cent, bankex 1.63 per cent, realty 1.58 per cent, IT 1.44 per cent, teck 1.37 per cent, auto 0.80 per cent, capital goods 0.27 per cnt, healthcare 0.09 per cent and FMCG 0.08 per cent.
Power was the sole loser, falling 0.61 per cent.
Among the 30-share Sensex pack, 21 stocks advanced and remaining 9 stocks fell during the week.
Shares of Reliance Industries (RIL) surged 11.05 per cent. Its subsidiary Reliance Jio Infocomm (RJIL) breached the 100 million customer mark in 170 days. Jio announced that in addition to its own market leading tariff plans, it will also offer its customers the option to choose the highest selling tariff plan of any of the other leading Indian telecom operators, but with 20 per cent more data than what any other operator provides.
It was followed by Axis Bank 7.03 per cent, HDFC Bank 5.10 per cent, Asian Paints 4.03 per cent, Sun Pharma 4.02 per cent, Tata Motors 3.61 pe cent, Tata Steel 3.26 per cent, Coal India 3.22 per cent, Gail 2.87 per cent and ICICI Bank 2.03 per cent.
While, NTPC fell 2.82 per cent. The stock was the top loser from the Sensex pack. The company said that the 115 megawatts (MW) out of 260 MW of Bhadla Solar Power Project of NTPC has been commissioned. With this, the installed capacity of NTPC's solar power projects has touched 475 MW. The total installed capacity of NTPC on standalone basis has become 41177 MW and that of NTPC group has become 48143 MW.
It was followed by Dr reddy 1.25 per cent, Power Grid 0.85 per cent, HDFC 0.59 per cent, M&M 0.59 per cnt, ITC 0.37 per cent, Infosys 0.28 per cent and Adani Ports 0.27 per cent.
The total turnover during the week on BSE and NSE fell to Rs 12,782.15 crore and Rs 1,01,538.62 crore, respectively, as against last weekend's level of Rs 15,972.96 crores and Rs 1,19,348.64 crores. Both the markets remained closed yesterday on account of 'Mahashivratri'. (PTI)