Gains across sectors marks action-packed, positive week, momentum seems to be intact
In this file photo taken last month, Congress party supporters shout slogans against billionaire jeweller Nirav Modi during a protest in New Delhi. The Nirav Modi affair has become a hot button election issue. Pic/AFP
Markets had a great showing last week and saw gains across sectors. BSESENSEX gained 607.62 points or 1.68 per cent to close at 36,671.43 points. NIFTY gained 171.90 points or 1.58 per cent to close at 11,035.40 points. The broader market saw BSE100, BSE200 and BSE500 gain 1.68 per cent, 1.70 per cent and 1.91 per cent respectively. The action was once again in the midcap and smallcap space which saw BSEMIDCAP gain 2.08 per cent and 3.91 per cent respectively.
Gainer, loser
The top sectoral gainer was BSECONSUMER DURABLE up 3.81 per cent followed by BSEPOWER 3.70 per cent and BSEOIL&GAS 2.67 per cent. The top loser was BSEIT down 2.13 per cent followed by BSETECH 1.87 per cent. In individual stocks the top gainer was Eicher Motor up 9.66 per cent followed by Hind Petro 7.26 per cent and ACC 6.93 per cent. The top loser was Wipro down 8.92 per cent followed by Zee Entertainment 6.50 per cent and HCL Tech 4.27 per cent.
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Dow Jones was under pressure possibly with Donald Trump facing heat on the China trade wars and the Mexican wall. Dow Jones lost 576.08 points or 2.21 per cent to close at 25,450.24 points.
With Indian markets rallying and foreign investors putting money the rupee had a strong showing as well and gained 76 paisa or 1.07 per cent to close at R 70.15.
Elections were notified on Sunday March 10. With polls notified the model code of conduct would kick in and hopefully leaders of political parties will use better language to address each other, lest there be complaints under the code.
Markets rallied last week on expected lines and midcap and smallcap led from the front. PSU stocks which were mercilessly beaten down saw huge rallies. The PSU ETFs which I had spoken of in my column last week saw huge traction. The CPSE ETF and ICICI Bharat-22 had very strong showing last week and registered strong gains as their underlying shares rallied. In the case of Bharat 22, ITC and Axis Bank also registered significant gains. These ETFs are likely to continue their momentum as more PSUs declare interim dividends.
Nirav Modi
Fugitive diamantaire Nirav Modi is back in the news for the expensive jacket made from ostrich hide he was photographed wearing. The Govt is pursuing the matter and would like him to be arrested and brought back to India at the earliest. His being arrested and brought back would be another political issue with the leader of the opposition using the two surnames of the PM and the fugitive as being one.
Essar Steel has finally found a resolution and is sold to Arcelor. One needs to keep fingers crossed and hope that no more cases are filed by the erstwhile owners of Essar Steel. The way this group has misused public funds would be an interesting case study in the IIMs of this country.
Jet Airways plan to manage its resources seems to be seeing the light of day with SBI, Etihad and Naresh Goyal seemingly hammering out a plan of sorts. One hopes that this is also resolved sooner rather than later as already 20 per cent of the airline's aircraft have been grounded so far.
Moving up
Market momentum seems to be intact and they should continue to move up next week, barring a day or two of correction. With polls notified, markets would look for the final shape and contours of the mahagathbandan and the threat it would pose the ruling party in the upcoming elections.
Markets would look to discount any surprises. Use upward movement to book some profits and take some money off the table. Dips can be used to add to positions. However anything that moves on rumours maybe avoided.
Arun Kejriwal is founder of the Mumbai-based advisory firm Kejriwal Research & Investment Services Pvt Ltd.
Disclaimer: No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is for educational and information purposes only.
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