Expert: In order to break out of the consolidation and move towards the 22,500+ zone, Nifty has to maintain above 22,150; otherwise, profit-taking could resume.
Bulls Dalal Street :
The benchmark indices saw a one percent increase each as bulls marched down Dalal Street. The Nifty ended comfortably above 22,000 even though it began the day on a lower note.
Rose and End Points:
This week, the BSE Sensex increased 831.15 points, or 1.16 percent, to close at 72,426.64, while Nifty added 258.2 points, or 1.18 percent, to end at 22,040.70.
Sectorally, the BSE Energy index increased 3%, the BSE Oil & Gas index gained 3%, and the BSE Auto index increased 5%. However, the BSE Metal, FMCG, and Telecom indices all saw a 0.5 percent decline.
Investers sold stocks :
During the week, domestic institutional investors (DIIs) sold stocks worth Rs 8,731.60 crore, while foreign institutional investors (FIIs) sold stocks worth Rs 6,237.55 crore.
In the week ending February 9, foreign institutional investors (FIIs) sold stocks valued at Rs 5,871.45 crore.
Investers purchase stocks :
Since February 1st, the net sell by FIIs has been Rs 13,917.89 crore, while DIIs have purchased stocks for Rs 17,393.01 crore.
Banking sectors:
“The banking industry’s strong buying helped broad indices surge to new heights, offsetting the quiet start to the week marked by worries over high valuations and increased exchange margin requirements. With US inflation statistics coming in lower than anticipated, the Indices, in contrast to their Asian counterparts, kept up their strong climb. As US retail sales figures dropped, investor expectations of a rate cut by the Fed were reinforced. Vinod Nair, Head of Research at Geojit Financial Services, added, “A disinflation trend in the eurozone and expectations of higher consumption demand in China after the New Year holidays provided further support.”
Auto sector:
“High demand ahead of schedule and a promising profitability forecast contributed to the Indian auto sector’s successful week. Investors are drawn to PSU Banks because of their enhanced asset quality and the government’s emphasis on fiscal restraint. Large caps saw growth, while valuation discrepancies caused profit booking in mid- and small-cap companies.”
“In the near future, elevated valuation issues appear likely to cause a correction in PSU banks. In the meanwhile, strong demand for capital goods, FMCG, and metals is expected to propel these sectors together with a backlog of orders, opportunities for rural revival, and India’s closing trade deficit. Government-led industrial initiatives and lower commodity prices are driving this,” he continued.
The BSE Small-cap index had a flat closing value. ISGEC Heavy Engineering, Permanent Magnets, Salasar Techno Engineering, Dhunseri Ventures, Andhra Petro, Kamdhenu Ventures, Orient Green Power Company, and Visaka Industries lost between 15 and 23 percent. In contrast, Jubilant Industries, Mangalore Refinery and Petrochemicals, Force Motors, Natco Pharma, Time Technoplast, 63 Moons Technologies, and HPL Electric & Power increased 21 to 55 percent.
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