After gaining for the six consecutive days, BSE Sensex and Nifty 50 ended this week almost 2 per cent greater. BSE Sensex gained 70 points or .15 per cent to finish at 46,960, even though the Nifty 50 index gained 20 points or .14 per cent to settle at 13,760.55. During intraday, Sensex hit a record higher of 47026.02, even though Nifty 50 touched an all-time higher of 13,772.85. Broader markets underperformed equity benchmarks. S&P BSE MidCap index ended .35 per cent down at 17,801, even though S&P BSE SmallCap index fell .24 per cent to settle at 17,769. The prime BSE Sensex contributors have been Infosys, ICICI Bank, TCS, Reliance Industries (RIL), SBI, HUL and ITC, amongst other people.
Narendra Solanki, Head of Research at Anand Rathi Shares and Stock Brokers
During the afternoon trade, markets continued to trade in red having said that nearing the closing session, markets recovered to trade in the green. Traders sentiment was enhanced as Icra pegged the contraction in the economy at 7.8% for 2020-21. Before the GDP numbers for Q2 have been out, it had predicted the fall in the economy at 11%. The report stated enhancing financial fundamentals, a vibrant outlook for the rabi season, and the visibility of vaccine availability are anticipated to strengthen demand. Further, the sentiments have been also supported by the Finance minister Nirmala Sitharaman’s statement that robust choices taken by the Modi government have ensured a steady flow of foreign direct investment (FDI) into the nation which is far higher than what comparable economies have attracted in the course of the pandemic.
Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance Co. Ltd
FII has invested $14 bn because November and $21 bn in CY2020. India has received a great deal bigger flows as several other emerging markets like Taiwan, South Korea and Thailand have noticed massive outflows in CY2020. As the US dollar is anticipated to stay weak, FII flows in emerging markets and India are anticipated to stay robust. As most of the parameters are seeking favorable, investors ought to spend consideration to valuation. Nifty is trading at P/B of 3.9, which is close to all-time higher because 2009. What it implies that there is restricted upside from valuation rerating and a lot of optimistic scenarios is priced in. The consensus is estimating higher double digit development in earnings in FY22 and FY23. Corporate earnings to be announced in January will give some indication if this is achievable. It may perhaps be advisable to add equities on correction to boost threat-return equation.”
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
The Nifty-50 Index has gained 1.8% this week even though the Nifty-Mid Cap one hundred Index and BSE Small Cap Index have gained 1.9% and 1.4%, respectively. The industry remained buoyant on earlier-than-anticipated deployment of Covid-19 vaccines, impending US fiscal stimulus and decreasing domestic Covid-19 circumstances. FIIs flows although robust have moderated some bit from the preceding week. The typical everyday FII flows in the 1st 4 days of the week was Rs 3200 crore. Going forward anticipate FII flows to slowdown in the subsequent two weeks as we head towards Christmas trip. Markets could turn volatile subsequent week due to the month-to-month expiry and lesser participation from FIIs. We anticipate Nifty-50 to consolidate involving 13,000 & 14,000 levels till the finish of this month.