Weekly Market Analysis: Indian share markets closed lower, metal stocks gained

 

Weekly Share Market Analysis: The benchmark indices closed more than 1% in the week ended October 16. The BSE index Sensex fell 526.43 points or 1.30% and at  39982.98 while the NSE index Nifty declined 151.75  points or 1.28% and closed at 11762.45 levels. The Bank Nifty on the spot levels fell 313.55 points or 1.32% and ended at  23533.25.

The midcap and smallcap sectors also declined on a weekly basis. The Nifty midcap 100 index fell 306.25 points or 1.71%  and at 16787 while the Nifty smallcap fell 37.3 points or 0.64% and closed at 5839.3 levels.

 

Weekly Analysis- Top gainers and losers

 

Weekly NSE Nifty Top Gainers
Company Name	LTP	Previous Close	Change (%)
Tata Steel	393.85	369.50	6.59
JSW Steel	311.05	292.00	6.52
Hindalco	179.80	170.00	5.76
Ultratech	4482.10	4298.35	4.27
Grasim	772.70	745.10	3.20
Weekly NSE Nifty Top Losers
Company Name	LTP	Previous Close	Change (%)
Wipro	339.65	374.00	9.12
Tata Motors	127.75	138.45	7.73
UPL	466.95	497.30	6.10
Bharti Airtel	401.65	425.20	5.54
Sun Pharma	486.90	512.90	5.07

 

Weekly NSE Nifty Midcap 100 Gainers
Company Name	LTP	Previous Close	Change (%)
JSW Energy	63.80	56.55	12.82
Cummins India	462.00	432.10	6.92
Weekly NSE Nifty Midcap 100 Losers
Company Name	LTP	Previous Close	Change (%)
Zee Entertainment	175.70	200.55	12.39
MindTree	1329.15	1504.25	11.64
Weekly NSE Nifty Smallcap 100 Gainers
Company Name	LTP	Previous Close	Change (%)
Just Dial	486.35	415.65	17.01
Amber Enterprise	2180.65	1872.65	16.45
Weekly NSE Nifty Smallcap 100 Losers
Company Name	LTP	Previous Close	Change (%)
Mishra Dhatu Nig	174.50	192.45	9.33
Suven Pharma	350.95	382.45	8.24

 

Weekly Indian share market analysis 

 

Other than global cues, the domestic factors that impact the market sentiments during the week are given below.

Indian share market started with a positive note on Monday as the weekly statistical data shows an increase in foreign exchange reserves. The negative news like weak macro (CPI and IIP) data, no consensus on borrowing for the GST shortfall made a negative start for the market on Tuesday morning. But the downside was capped as the FM announced Rs 70000 cr package to boost the consumer demand and investment.  

Indian share market also reacted negatively on Wednesday morning to the IMF GDP forecast and the WPI numbers. The Bank Nifty boosted the market sentiments on Wednesday afternoon after the Supreme Court asked the government to implement a waiver of compound interest fast and come back with a proper plan on 2nd November for the next hearing.

On Thursday Indian markets closed in the deep red due to negative global cues and concerns about economic growth. The market bounced back on Friday with positive export data released on 15 October. The government also clarified that a revenue shortfall of Rs 1.1 lakh cr will be borrowed by the Centre on appropriate tranches on behalf of states to meet the GST shortfall.

 

 

Weekly global market analysis

 

The U.S markets managed to close higher for the third consecutive week. The market gained even after the stimulus hopes diminished further and rising coronavirus cases in Europe and the US. The jobless claims hit two months high in the US but the retail sales jumped in September.

The European markets fell on the concern of fresh lockdown due to rising coronavirus cases in the continent. Brexit related uncertainty and the diminishing hopes of U.S fiscal stimulus ahead of the presidential election are other reasons for market fall. Though the business activity has picked up in Europe, V- shape recovery would be tough as per European Central Bank (ECB).

Analysis of other Asian countries, Japanese markets fell on a weekly basis. The Japanese government is now looking for a third stimulus package to boost the consumption which has faltered due to the coronavirus pandemic. Chinese markets rallied after traders returned from the National Holiday. Chinese exports beat the market forecast in September. IMF has also raised the Chinese full-year GDP forecast to 1.9% up from its June forecast of 1% in October in its World Economic Outlook.

 

2nd Quarterly results of Nifty50 stocks

 

Wipro

The IT company Wipro reported a 3.15% rise in net profit over the previous quarter to Rs 2465.7 crore in July-Sept end quarter. Total revenue rose 1.17% sequentially to Rs 15096.7. Revenue from IT rose 3.66% and operating from rose 8% to Rs 2780 crore.

Wipro has also announced a buyback of Rs 9500 cr, will repurchase 23.75 cr share at Rs 400. The share price of Wipro declined after announcing the second quarterly results.

 

Infosys

The second-largest IT service provider in India Infosys on Wednesday reported a 20.5% YoY increase in the net profit for Q2 FY21 at Rs 4845 crores. This is as compared to Rs 4019 crore profit for the same period last year. Consolidated revenue from operations increased to Rs 24570 crore in Q2FY21 up by 8.6% on a YoY basis. The company’s operating profit also rose to Rs 6228 crore, a growth of 26.8% YoY

The Q2 FY21 of Infosys beat street estimates, a profit booking was seen after the second quarterly results announced.

 

HCL Technologies

The IT company HCL Technologies has reported a 7.3% QoQ jump in its net profit for July-Sept end quarter at Rs 3142 crore. The company had reported a net profit of Rs 2925 crore in the previous quarter. Rupee revenue rose 4.2% QoQ at Rs 18594 crore against Rs 17841 crore. 

The HCL Tech Q2 FY21 numbers are in line with street expectations. The share price of HCL Tech seen profit booking after the announcement of second-quarter results on 16 October.

 

FIIs and DIIs movement

On a weekly basis, FIIs bought Rs 1185.51 crores while DIIs sold Rs 5217.47 crores in the cash market segment. In the month of October also FIIs were buyers so far and DIIs were the seller.

Conclusions:

Indian share markets erased most of its weekly gains on Thursday due to negative global market cues. The uncertainty about the US stimulus and rise in coronavirus cases in Europe and the US has created a negative sentiment in the domestic market.

Traders can follow our “Next Week’s Share Market Analysis and Forecast” reports tomorrow on our website.

 

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Happy Weekend!!

Editor’s Desk