Week Review: Sensex extends gain for second week, Tata Motors DVR surges nearly 17%

Equity markets extended gains for the second straight week on robust quarterly earnings and impressive macro-economic data. The BSE Sensex advanced 189.43 points, or 0.71 per cent to 26,843.03 on June 3 from 26,653.60 on May 27 last month, while NSE Nifty 50 index gained 64.15 points, or 0.79 per cent to 8,220.80 from 8,156.65 during the same period.

Among the 51 components in the Nifty index, 32 stocks ended the week in green with Tata Motors-DVR surging 16.60 per cent to Rs 316.80 for the week ended June 3 Others components such as Hindalco, Tata Motors, Coal India, Adani Ports, Axis Bank and NTPC gained 14.69 per cent, 12.05 per cent, 9.72 per cent, 6.16 per cent, 5.83 per cent and 5.42 per cent, respectively.

On the other hand, Sun Pharmaceutical, Bharat Heavy Electricals and Idea Cellular retreated 10.71 per cent, 7.85 per cent and 6.86 per cent, respectively, this week.

Sectorwise, the BSE Metal index, BSE Auto index and BSE Bankex gained 4.96 per cent, 3.76 per cent and 1.35 per cent, respectively, during the week. The BSE Consumer Durables index and BSE Healthcare index slid 2.68 per cent and 2.63 per cent.

Dipen Shah, senior vice-president, research analyst, PCG research, Kotak Securities, said, “Quarterly results have been better than expected on an overall basis and most managements have given bullish comments for FY17 as compared to FY16. This has been a major reason for the market rise over the past two weeks.”

Foreign institutional investors remained net buyers in the domestic equity markets as they bought shares worth of Rs 2,013.70 crore in the past five trading sessions. On the flip side, Indian rupee depreciated marginally 0.27 per cent to 67.24 during the same period.

Data released during the week showed the economy grew at 7.9 per cent in the fourth quarter of 2015-16 taking the overall GDP growth to a five-year high of 7.6 per cent in the fiscal, mainly on account of good performance of manufacturing and farm sectors. The manufacturing sector during the fourth quarter recorded a growth rate of 9.3 per cent while farm sector grew at 2.3 per cent.

Going ahead, “Markets will wait for important events like the RBI policy meeting, Fed meeting in June and the referendum in Britain on whether to stay in EU or not. Timely onset of the monsoons will be a positive for the markets,” said Shah.