Market post strong gains for the second week, up 658 points

Team Udayavani, Apr 8, 2018, 11:09 AM IST

Mumbai: The Sensex ended with strong gains for the second consecutive week by rallying 658.29 points to close at 33,626.97, while the broader Nifty surged to reclaim the key 10,300-level to finish at 10,331.60. 

The domestic market entanglement in global trade-war uncertainties seems to shaken-off as bulls foresightedness gained upper-hand amid the much-anticipated RBI’s status-quo over rate in its monetary policy and investors cheering its optimistic outlook of the Indian economy in FY19. The Central Bank projection of GDP at 7.4 percent for FY19 and lowered inflation forecast augured well for investors. 

Despite the volatility, the market trading momentum was unambiguous with four gain days induced by a tinge of short- covering was well supported by stock specific news of robust Auto sales, USFDA Approvals, RBI allowing moderation in bond trading losses in banks. The market did react on Wednesday session by losing heavily on lingering US-China trade-war spat, the world’s two largest economies which continue to endorse measures and countermeasures. 

The US imposed tariffs of 3249.53₹ billion on Chinese imports, China retaliated by tariffs on 106 American products, while the trade dispute is not showing signs of ending soon, as US is now exploring options to charge additional tariffs of 6499.05₹ billion on Chinese imports. The domestic market stood ground as investors focus shifted to corporate earnings growth which is due, and are in early stage of revival. 

The BSE Sensex started the week at 33,030.87 and hovered between 33,697.51 and 32,972.56 before finishing the week at 33,626.97, showing a gain of 658.29 or 1.99 percent. (The Sensex gained 372.14 or 1.14 percent during previous week) The Nifty resumed the week at 10,151.65 and traded between 10,350.45 and 10,111.30, the index finally closed at 10,331.60, up 217.90 points, or 2.15 percent.

Counterwise, the broader market, both midcap and smallcap shares outperformed the key indices posting ample gains. Buying was led by Auto, PSU Bank, HealthCare, FMCG, PSUs, Capital Goods, Oil&Gas, IT and Teck sectors.