Markets overcome Brexit jitters; FPIs buy Rs 1,155-crore shares 

Mumbai: Snapping three weeks of extended losses, last week Indian stock markets overcome jitters due to Brexit aftermath as the market benchmark Sensex gaining 747.20 points to finish eight months high at 27,144.91 points. The broader NSE Nifty garnered 239.75 points during the week. Key benchmarks closed at the highest this year so far.

Several positive factors enhanced the market sentiment on the domestic bourses. The Met forecast of good rains, all-round growth measures including implementation of 7th pay commission, more liberalisation in FDIS, along with optimism over passage key Goods and Services Tax (GST) on approaching monsoon session hogged limelight.

Several positive factors enhanced the market sentiment on the domestic bourses. The Met forecast of good rains, all-round growth measures including implementation of 7th pay commission, more liberalisation in FDIS, along with optimism over passage key Goods and Services Tax (GST) on approaching monsoon session hogged limelight during the weeks trading momentum.

The S&P BSE Sensex resumed lower at 26,347.81 and hovered in a range of 27,243.36 and 26,262.72 before ending the week at 27,144.91, recording a net gain of 747.20 points or 2.83 per cent for the week ended July 1, 2016. The 50-share Nifty also surged by 239.75 points or 2.96 per cent to close the week at 8,238.35 after moving in a range of 8,356.75 and 8,039.35.

Encouragingly, foreign portfolio investors (FPIs) bought shares worth whopping Rs 1,155.28 crore during the week as per Sebi’s record including the provisional figure of July 1. Mid-cap and small-cap stocks performed well on both the bourses. In the broader market, the BSE mid-cap index rose by 544.15 points or 4.81 per cent to settle at 11,857.56. The BSE small-cap index rose by 606.80 points or 5.38 per cent to settle at 11,885.43.

Though trading started for the June derivative expiry week on subdued note amid volatility, but investor sentiment soon recouped during day’s session’s mainly of global relief rally derived on expectation of major Central Banks resorting to more stimulus to boost economy. The impact of Brexit turmoil has been diluted.

Also, firm rupee sentiment against US dollar and turnaround of FIIs from sellers to buyers led the bulls gaining upper-hand as well as across the spectrum short covering rally during the week. Buying-spree was led by realty, oil&gas, capital goods, FMCG, PSUs, power, healthcare, metal, consumer durable, banks, auto counters. IT and tech sectors saw selling pressure, while the broader midcap and smallcap companies shares witnessed good buying.
Source: PTI