Shares of State Bank of India, Bajaj Finance, Bajaj Finserv, Maruti Suzuki and HCL Technologies were among the top performers on the 30-share Sensex, each rising between 2% and 2.5%.Both the Sensex and Nifty were little changed this week.
The small cap and mid cap indexes fared worse, falling 1.8% and 0.7% respectively over the week.
IndiGo fell 9% this week as India’s largest airline suffered widespread flight cancellations and delays. The regulator granted the carrier temporary relief on Friday.
Expert views
Indian markets have reacted enthusiastically to the RBI’s unexpected 25 basis point rate cut, a move that seemed unlikely given strong second-quarter GDP data. This surprise, combined with sharply lower inflation forecasts and supportive liquidity measures, has led to risky sentiment in equities, said Vinod Nair, head of research at Geojit Investments. He added that interest rate sensitive sectors such as auto, real estate and NBFCs are leading the gains due to cost reductions. “While private banks have also risen on expectations of government bond gains, concerns over net interest margins (NIM) have limited their upside potential. Overall, the short-term outlook remains cautiously positive, with an emphasis on strong corporate earnings in December. Near-term risks such as a widening current account deficit and global trade tensions continue to pose challenges. The US Fed’s stance on rate cuts will be key to maintaining the domestic trend for the month,” said Nair.
Global markets
Japan’s Nikkei stumbled on Friday, erasing its gains for the week in an otherwise upbeat session across Asia, as investors waited for US inflation pressures that could impact a divided Federal Reserve.
European markets were set for a subdued start, with Euro Stoxx 50 and FTSE futures little changed. Nasdaq futures rose 0.4% and S&P 500 futures rose 0.2%.
In Asia, the Nikkei 225 fell 1.3% after weaker household spending data highlighted persistent inflation and boosted expectations of a possible rate hike later this month. The index remained on track to end the week largely flat.
The broader MSCI Asia-Pacific ex-Japan index rose 0.4% and was on track for a weekly gain of 1%. Most regional markets recorded a modest increase, while South Korea recorded a stronger increase of 1.4%.
Rupee vs dollar
The Indian rupee gave up early gains on Friday to end slightly weaker, falling 5 paise to 89.94 against the US dollar in preliminary trade after the Reserve Bank cut its benchmark interest rate for the first time in six months.
The dollar index, which measures the dollar against six major peers, fell 0.03% to 98.96.
Rough impact
WTI crude was on track for a weekly gain of nearly 2% early Friday, buoyed by expectations of a Federal Reserve rate cut, rising US-Venezuela tensions and stalled peace talks in Moscow.
Oil prices were little changed at the open, with Brent adding 6 cents, or 0.09%, to $63.32 a barrel by 0104 GMT. US West Texas Intermediate rose 4 cents, or 0.07%, to $59.71.
(with input from agencies)
#Market #Wrap #Sensex #rises #points #Nifty #interest #rate #sensitive #stocks #rise #RBI #cuts #repo #rate