Key benchmark indices started this week’s trade on a positive note as both, BSE Sensex and Nifty touched new all-time highs. This was primarily due to the outlining of the Modi lead central government’s plan to bolster growth in India, which boded well with investors and experts, alike. The reforms outlined by the government focused on creating a conducive business environment, a better tax regime and capital inflows through foreign direct investment (FDI).
However, the last trading session of the week saw key benchmark indices plummet on account of profit booking. Institutional investors booked profits over concerns of disruption of oil supply from Iran due to the ongoing violence in the country. Also, global indices seemed volatile during the week, especially European indices.
Some economic data releases helped market curtail further losses. Index of industrial production (IIP) rose by a robust 3.4% in the month of April, after contracting in the previous two months. The increase in production was primarily due to the improved performance of manufacturing and power sectors. Also retail inflation fell to a 3 month low of 8.28% in the month of May, further buffering market fall.
S&P BSE Sensex rose in 3 of the 5 trading sessions. However, the massive fall on the last trading session saw the index fall by 168 points or 0.66%, on an overall basis. CNX Nifty also declined 0.54%. The broader market was also down this week. BSE Midcap index shed nearly 1.8%, while its small cap counterpart lost 1%.
On the BSE sectoral front, Information Technology was the top gainer this week as the sector rose by 5.9%. IT was preceded by Healthcare and Teck. The former rose by 4.1%, while the latter gained 3.6%. At the opposite end of the spectrum, Realty was the worst performing sector. The sector shed 6.3% during the week, preceded by PSU and Oil & Gas, which fell by 6% and 5.2%, respectively.
Despite the poor showing this week, foreign institutional investors were net buyers, both in the equity and debt segment. On the equity front, net inflows stood at Rs. 7224 crores, while the debt segment saw inflows of Rs. 11,713 crores.
