The Bombay Stock Exchange 30-share benchmark, the Sensex, was down on Monday, 27 July, slightly led by Reliance Industries, after its quarterly results came out lower than expected. The BSE FMCG index rose to a record high on expectations that government spending will boost demand for consumer goods. Hindustan Lever and ITC both gained as well as DLF ahead of its quarterly results report.
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On Tuesday, the market ended relatively flat again. Banks ended the day lower after the RBI kept interest rates unchanged on inflation fears. Tata Motors stock surged after earnings came out better than expected. Q1 profits soared 58%. The Sensex has rallied 88% since it’s March 9th low.
The Sensex fell for a 3rd straight day on Wednesday after investors judged the recent run up in the market as excessive. The BSE index has seen the market rise over the last 2 weeks as several companies reporting their Q1 earnings have beaten analyst expectations. Stocks that took a hit included Tata Motors, DLF, Tata Steel and Sterlite Industries. Jindal Stainless rose over 5% on news that its first quarter profit more than tripled.
The BSE 30-share barometer rose on Thursday after 3 days of losses led by banking stocks. State bank of India and ICICI Bank both rose after better than expected Q1 earnings. The Sensex had risen 6.2% this month as of 30th July, driven primarily by positive earnings reports.
The Sensex surged on Friday closing at a 52-week high on strong earnings reports and global cues. Both the Sensex and the NSE Nifty were up 8% for the month of July.
Top gainers for the week were Hindalco, Tata Motors, ONGC, SBI and HUL.
Top losers included Bharti Airtel, Reliance Communications, Hero Honda, DLF, and NTPC.
Barring Oil & Gas and Pharma, other BSE sector indices closed in the green for the week.
To learn more on what to expect from the markets, we have with us J Thunuguntla of SMC Capital.