Zen Weekly Market Report - 15th to 19th September 2014

Domestic markets closed the volatile week on a flat note amid mixed global and domestic macro data. Slowdown in FIIs buying and absence of fresh triggers capped the upside of the market. For the week, Sensex and Nifty closed with gains of 0.11% and 0.20% to end at 27090 and 8121 respectively.

Domestic indices opened the week on a negative note following weak global cues including concerns over Fed policy outcome and weak Chinese factory output data. Investors' sentiment remained cautious over disappointing July industrial growth and August CPI data. Despite encouraging WPI data for August, RBI Governor's statement that there was less scope to cut interest rates in upcoming monetary policy meet coupled with India's export growth slipping to 2.35% at $26.95 billion in August, pushing up trade deficit to $10.83 billion, led to selling pressure in the market.

Thereafter, markets found relief over the US Federal Reserve's accommodative policy stance coupled with optimism on trade ties with China, which would attract foreign inflows led to short covering rally. Further, RBI easing Foreign Direct Investment (FDI) norms for corporates coupled with optimism over economic growth in coming years supported themarkets.However, Profit booking at higher levels amid absence of fresh triggers and FIIs outflows capped the upside of the markets. Indices ended another week on a flat note.

On a sectoral front, IT sector is the top gainer of the week followed by HC, Realty and Auto. Oil & Gas is the loser of the week followed by Metal, CG and CD sectors.

During the week, both FPIs and MFs were net buyers and they net bought equities worth Rs. 175 Cr and Rs. 1275 Cr respectively.

As on Friday, the advance to decline ratio stood at 1:1 indicating Consolidation in the market.

Source : Equity Bulls

Keywords