Indian Markets closed with gains for fourth consecutive week - ZENMoney

Domestic Markets closed with gains for the fourth consecutive week driven by positive global cues, resumption of reform measures by the Govt relaxing FDI limits in 12 sectors and better Q1 earnings by companies boosted the sentiment. While weak economic data, FII Fund outflows and RBI measures to curb rupee fall kept the upside of the local bourses on check. For the week, Sensex and Nifty added 191 and 20 points to end at 20150 and 6029 respectively.

Though the domestic markets started the week on a negative note tracking, the sentiment turned positive with the WPI inflation for the month of June eased to 4.86%. Thereafter, the RBI's efforts to curb the rupee's fall by raising short-term borrowing costs and restricted funds banks could access weighed on the sentiment, the markets slumped on worries that the liquidity squeeze would hurt growth going forward and impact equity inflows.

With the Government liberalizing FDI limit in 12 sectors to shore up foreign investments and rupee strengthening the sentiment turned positive, further boosted with the Fed Chairman comments to continue with its accommodative policy stance and better than expected results from Index majors added to the sentiment. However, the sentiment turned cautious and investors resorted to profit booking at higher levels.

FIIs on the back of mixed global cues and weak economic data on the domestic front continued to remain net sellers. During the last five sessions, they net sold equities worth Rs 5715 Cr. On the other hand Mutual Funds too remained net sellers, they net sold equities worth Rs 337 Cr.

FMCG Stood as top gainer as buying was seen in the space on forecasting of better than expected rainfall for the month of July. Oil & Gas stocks gained after hiking of petrol prices by Rs 1.55 a liter. IT stocks witnessed buying interest after TCS posted better than expected results. Interest rate sensitive Bankex and Realty witnessed heavy selling after RBI announced new measures to curb the rupee's fall by tightening liquidity. Metal stocks too witnessed selling.

As on Friday, the advance to decline ratio stood at 4:5 indicating profit booking witnessed in the market.

Source : Equity Bulls

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