The Sensex and the Nifty rose 0.54% and 0.64% respectively in the last week on account of positive global cues. Optimism cheered the markets in the Christmas week as most of the developed world market indices closed positive on a week on week basis. The Jobless Claims for the US economy saw reduction on a week on week basis that saw most of the world market indices rally in the last week.
The Jobless Claims were reported at 3,38,000 in the third week of December as compared to a revised 3,80,000 claims from 3,79,000 in the previous week for the US economy. The reduction in the Jobless Claims by 42,000 from the previous week following the Fed’s decision to taper stimulus is a positive sign for the US economy. The Dow Jones Industrial Average rose 1.58% and the NASDAQ rose 1.27% on a week on week basis.
The German DAX rose 2% and the UK FTSE rose 2.18% on a week on week basis due to positive economic data that was reported from the US economy.
Japan’s benchmark index Nikkei 225 rose 1.95% on a week on week basis as the Yen depreciated to a five year low of 105 against the USD. The depreciation in the value of the Yen is expected to increase the amount of exports from Japan to US.
Crude oil prices rose 0.37% to USD 112.18 /bbl and gold prices rose 0.83% to USD 1213 /Oz on a week on week basis.
The equity derivatives market saw rise in open interest in Nifty Index futures by 8.39% while implied volatility of Nifty index options increased week on week. FIIs were net buyers to the tune of Rs.1215 crores in the equity market in the last week. Domestic Institutional Investors were net sellers to the tune of Rs.370 crores in the equity market in the last week.
Industry and Stock Specific trends
The sectoral indices rose last week with only the S&P BSE Auto and S&P BSE Oil and Gas index closing negative with a decline of 0.39% and 0.05% respectively on a week on week basis. S&P BSE Bankex, IT and PSU indices gained 1.42%, 1.02% and 2.08% respectively in the last week.
BHEL Stock rose 4.67% to Rs.173 after the company announced that it had bagged an order for the supply of Turbine Generator Package worth Rs.10230 milllion from Neyveli Lignite Corporation for a 1000 MW thermal power plant.
TCS, Infosys and Wipro stocks rose 2%, 0.36% and 1.64% to Rs.2162, Rs.3565 and Rs.558 respectively in the last week due to positive data from the US economy. Positive economic data from the US economy improves business prospects for the export dependent IT companies from India.
ONGC Stock rose 2.76% to Rs.292 in the last week on account of temporary shutdown of operations of ONGC Videsh in the oilfields of South Sudan due to deteriorating security situation in the country.
Table 1. Weekly Market Movement
Table 2. Weekly Gainers and Losers
