The first week of the New Year was in favor of the bulls, despite the uncertainty about the new variant of COVID-19, Omicron. The reference BSE Sensex advanced 1,490.83 points, or 2.64 percent, to 59,744.65 for the week ended Jan. 7. Likewise, the 50-share Nifty index strengthened 458.65 points, or 2.64 percent, to 17,812 in the same period.
As many as 39 shares of the Nifty index settled the week in the black. With growth of over 10 percent, Grasim Industries and ONGC have made the most progress. They are followed by Bajaj Finance (up 9.78 percent), Eicher Motors (up 8.97 percent), Bajaj Finserv (up 8.23 percent) and Axis Bank (up 7.67 percent).
Tech Mahindra, Dr Reddy’s Laboratories, Infosys, Divi’s Laboratories and Cipla, meanwhile, fell more than 3 percent each.
According to market observers, some purchases by institutional investors have lifted the market. Vishal Wagh, Head of Research, Bonanza Portfolio, said: “Purchases by foreign and domestic institutional investors have supported the market. That could be the first indication that there is a high demand on the lower side. “
By sector, BSE Bankex recorded the highest growth of 6.53 percent in the last five trading sessions. They are followed by Nafta i plin (up 5.32 percent), Telekom (up 3.71 percent) and Metal (up 3.16 percent). On the other hand, the BSE IT and BSE Healthcare indices fell 1.55 percent and 2.18 percent, respectively.
On the superiority of the banking sector, Vinod Nair, head of research, Geojit Financial Services, said: “The sector surpassed other sector indices because several private lenders reported double-digit business growth during the third quarter.
Foreign institutional investors bought shares worth over Rs 4,500 million during the first four trading sessions this week. On the other hand, domestic institutional investors bought shares for more than 3,400 million dinars.
Rahul Shah, co-head of research, Equitymaster said: “Markets have dropped worries about Omicron and the Fed to announce strong gains in the first week of trading of the year. But with strained estimates and concerns about Omicron’s new rise that is slowing India’s growth again. It will be interesting to see if the fun continues. In our opinion, caution should be a buzzword from now on and any significant new exposure to stocks should be avoided. ”
The coming week will be driven by trends in the outcome of initial earnings with the IT sector in focus. This is also a busy week in terms of publishing macroeconomic data such as inflation data for December and production and industrial production data for November. IT Chief Infosys, Tata Consultancy Services and Wipro will announce their results for the third quarter on January 12th.
The publication of the consumer price index (CPI) is planned for the same day. India’s annual inflation rate rose to 4.91 per cent in November 2021 from 4.48 per cent in October. On January 14, retailers will look forward to wholesale price index (WPI) data for December. India’s annual wholesale price inflation rate rose to 14.23 per cent in November 2021 from 12.54 per cent in the previous month.
Vinod Nair, head of research, Geojit Financial Services, said: “While the growing cases of omicrons and the Fed’s hawk stance keep the market volatile, hopes for a season of favorable earnings and the FII’s transition to net buyers bring optimism to the market.”