Equities inch-up on global cues

Mumbai: Indian equities markets sustained their bull run for the third consecutive week as positive global cues, coupled with a strong rupee, higher crude prices and inflow of foreign funds, kept investors` sentiments upbeat.

However, gains were capped on the back of disappointment over the status-quo maintained by the Reserve Bank of India (RBI) in its sixth and final monetary policy review for the 2016-17 fiscal, lower-than-expected quarterly results and profit booking.

The key indices closed the week`s trade with gains of around half-a-per cent each.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE gained 93.73 points or 0.33 per cent to close at 28,334.25 points. 

Similarly, the wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 52.6 points or 0.60 per cent to 8,793.55 points.

Vijay Singhania, Founder and Director of Trade Smart Online brokerage firm, said: "Last week, the key indices traded in a narrow range but ended in the positive zone. Sentiments were affected by below market expectations of the earnings of key corporates."

"Further, sentiments were affected after the RBI left key policy rates unchanged. However, positive global cues, coupled with a strong rupee and higher crude oil prices, lifted the sentiments," Singhania explained.

On a weekly-basis, the Indian rupee strengthened by 44 paise to 66.88 against a US dollar from last week`s close of 67.32.

Other market observers cited that at present, global market participants awaited a "phenomenal" tax plan US President Donald Trump is expected to release during the next few weeks.

"Major stock markets across the globe also got support as investors took inspiration from corporate earnings," D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors, told IANS.

"However, back home, banking stocks were adversely affected after the RBI kept its policy rates on hold and shifted its stance from `accomodative` to `neutral`."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, investors got some comfort from the RBI governor noting that there is further scope for banks to reduce lending rates as the central bank has already brought down its policy rates by 175 basis points since January 2015.

"Some support came with Economic Affairs Secretary Shaktikanta Das` statement that India will be able to pull off a seven per cent plus growth rate next fiscal as the Union Budget for 2017-18 has come up with several measures to provide a fillip to various sectors," Desai elaborated.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) purchased stocks worth Rs 531.06 crore, while domestic institutional investors (DIIs) bought scrips worth Rs 1,298.34 crore.

Figures from the National Securities Depository (NSDL) disclosed that foreign portfolio investors (FPIs) bought equities worth Rs 842.49 crore, or $125.32 million from February 6-10.

Commenting on the sectors, Rakesh Tarway, Head of Research, Reliance Securities, pointed out that some bout of profit booking was witnessed in metals and PSU banking sectors, which declined by 1.7 per cent and 0.9 per cent respectively.

"The IT sector saw a sharp up move with gains of 3.6 per cent balancing the sector rotations and keeping the headline indices flat," Tarway added.

"The CNX mid-caps and CNX small-caps continued to outperform registering new all time highs with each gaining by one per cent during the week."

The top Sensex gainers of the week were: Tata Consultancy Services (TCS) (up 7.29 per cent at Rs 2,396.70), Infosys (up 3.54 per cent at Rs 968.05), Adani Ports (up 2.54 per cent at Rs 311.25), Wipro (up 2.26 per cent at Rs 467) and Larsen & Toubro (L&T) (up 1.46 per cent at Rs 1,501.10).

The losers were: Dr.Reddy`s Lab (down 5.30 per cent at Rs 2,975.20), Cipla (down 4.77 per cent at Rs 579.35), ONGC (down 3.76 per cent at Rs 193.40), Tata Motors (down 2.51 per cent at Rs 509.40), and Lupin (down 1.75 per cent at Rs 1,464.60).