The vacation-shortened week was a volatile 1 for domestic benchmark indices, but each Sensex and Nifty came out with flying colours in the finish. S&P BSE Sensex tumbled a enormous 1,500 points or 3.2% on Monday when the 50-stock Nifty tanked 461 points or 3.36%, as the globe digested the sour news of a new coronavirus strain identified in the United Kingdom. But the bulls came operating back in the subsequent session, assisting the benchmark recovery practically all losses suffered. Sensex closed yesterday at 46,973 when Nifty ended at 13,749, each just a tad bit beneath their all-time highs. So what helped them recover these losses?
“On the first day of the week, our market witnessed vertical decline mainly due to ‘imported bearishness’ from the world market. However, the anticipation of fresh infusion of nearly $2.3 trillion in the economy from the US federal and likely possibilities of the Brexit deal over the weekend helped the market to bounce back from lower levels,” mentioned Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities.
Foreign investors not losing faith
Despite the sharp fall witnessed on Monday, Foreign Institutional Investors (FII) did not run out on Indian markets. After pulling away Rs 323 crore on Monday, FII had been net purchasers of Rs 2,915 crore worth domestic securities in the final 3 trading sessions. With this, FIIs have now invested Rs 62,648 crore in domestic equity and debt so far in December, just a small bit shy of Rs 62,782 crore they invested in November. The knee-jerk reaction to a piece of damaging news on Monday showed the strength of bulls. “… Monday’s short-lived fall failed to deteriorate FPIs interest in Indian equities who continued to remain net buyers this week, courtesy low-interest rates and surplus global liquidity,” mentioned Nirali Shah, Senior Research Analyst, Samco Securities.
Investors richer by Rs 6.39 lakh crore in 3 day
After suffering enormous losses on Monday the marketplace capitalization of all BSE listed firms dropped to Rs 178.79 lakh crore on Monday, down from 185.38 lakh crore at the finish of the earlier week. However, bulls fought back and as the marketplace recovered losses, investors earned Rs 6.39 lakh crore in 3 trading session as the marketplace capitalization zoomed to Rs 185.18 lakh crore.
Top gainers and losers
Among BSE Sensex constituents, Information Technology (IT) stocks had been shining vibrant following being the prime performers. Infosys was the prime gainer on Sensex, followed by HCL Technologies. These had been backed by a further defensive stock Hindustan Unilever. Sun Pharma, Bajaj Auto and Asian Paints had been the other gainers.
Failing to ride the momentum this week had been IndusInd Bank as the prime Sensex drag, followed by ONGC, NTPC, and Bajaj Finserv.
Benchmark outperform broader markets
Although broader markets showed some fighting spirit throughout the week and at instances closed a tad bit larger than the benchmarks, general it was Sensex and Nifty that ended the week with gains. BSE Midcap and Smallcap indices closed significantly less than 1% decrease from their closing levels of the earlier week but Sensex managed to achieve on the weekly charts.