Sensex above 33K, Nifty above 10300
Last week benchmark indices BSE Sensex and Nifty 50 touched fresh highs for most of the days in the week. The Nifty closed the week at 10,323.05, up 1.74%, while the Sensex gained 2.37% this week to close at 33,157.22.
Broader indices too extended their gains this week, as the Nifty Midcap and the Smallcap indices advanced 2.93 % and 3.77%, respectively. In the Sectoral chart Nifty PSU Bank, Media and Metal were the top most gainers for the week with gains of 28.96%, 6.57% and 2.38%, respectively. The only two losers for the week were Nifty PVT Bank and IT with loses of 0.62% and 0.44%, respectively.
Quarterly earnings, macroeconomic data points and recapitalisation of banks will steer stock markets this week, say experts.
"In the near term, stock-specific actions will be witnessed due to ongoing Q2 results. Going ahead, market will closely watch details of bank recapitalisation programme. Fed interest rate decision is the key event to be watchful (of)," said Vinod Nair, Head of Research at Geojit Financial Services.
PMI data for manufacturing and services sectors are due this week. “This Wednesday the Nikkei Market Manufacturing Purchasing Managers Index (PMI) data and on Friday Nikkei Services PMI datas are expected to release. This could turn out to be a market mover in the week,” said Anupam Singhi, CEO, MarketSmith India.
“Markets have moved up strongly in October aided by positive global cues, bank recapitalization and liquidity support. Given the premium valuations, we expect the markets to consolidate these gains in November. Stocks that are reporting good earnings would continue to be lapped up by the investors,” said Sanjeev Zarbade, Vice President – PCG Research, Kotak Securities.
Anita Gandhi, Whole Time Director, Arihant Capital Markets said, “Overall the past week saw positive trend, as the govt made announcement of Recapitalization of PSU banks & that completely changed the sentiment in PSU banks. Undertone for next week remains positive. However, NIA issue next week will suck good amount of liquidity from the market”.
Major companies reporting their earnings this week include Lupin, Tata Steel and Union Bank of India. Auto stocks will also be in focus this week in view of sales data announcement.
Jimeet Modi, Founder & CEO, SAMCO Securities is of the view that the market is riding the new high wave and is likely to continue with intermittent hiccups with intraday corrections. Traders should ride the wave and go long with tight stops.
Quarterly results announced so far portrayed a healthy sign of economic activities and at the same time fears of GST hiccups are put to rest, he added.
“Revival in the banking sector seems to have eased the nerves of FIIs and now market will be expectant on further updates on GST implementations in petroleum products and better Q2 numbers," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.