Weekly wrap: Nifty turns volatile on exit polls, fresh lockdowns
Last updated: 30 Apr, 2021 | 01:59 pm
The markets saw another interesting week, with factors such as West Bengal elections, fresh curbs due to rising Covid-19 cases, Q4 earnings releases, and FII outflows steering the course.
The Nifty started off the week on a strong note, jumping 1% on Monday, supported by positive global cues. US economic data and talks around rationalisation of corporate taxes boosted sentiments.
The index continued its rise on Tuesday, gaining another 1%. Optimism around vaccines and strong Q4 results by Nifty heavyweights led to further gains over the next two days. Indian equities ended the final trading day of the week with losses, as exit polls indicated that BJP was trailing in key states elections. Further, fresh lockdowns introduced in various parts of the country also dented sentiment. For the week, the Nifty gained 2.02%, posting its best gains in 3 weeks.
Top gainers and losers
- Nifty Metal was the biggest sectoral gainer for the week (up 9.02%)
- Nifty PSU Bank posted biggest weekly gains since the budget week
- Bajaj Finance, JSW Steel, Tata Steel, Bajaj Finserv and IndusInd Bank were the top Nifty Gainers this week
- HCL Tech, Britannia, Maruti, M&M were the biggest Nifty losers this week
Here is a quick recap of the market moving developments:
- Earnings season in full swing: Nifty heavyweights including ICICI Bank, Axis Bank, HDFC Bank, Bajaj Finance, Nestle, TCS, Infosys and Wipro have announced their Q4 results so far, among others. While the ongoing pandemic has affected various businesses, it has forced businesses to move towards greater digitization, providing a good opportunity for the IT industry. Reliance Industries is scheduled to report Q4 earnings today. You can check out the analysis for Bajaj Finance, HDFC AMC, Axis Bank and ICICI Bank.
- Core sector data indicates recovery: The combined output of the eight core sector industries rose to a 32-month high pace of 6.8% in March, aided by a low base. In the previous month of February, output had fallen at the fastest pace in six months, contracting 3.8%.
- SEBI issues new guidelines on employee compensation: Capital market regulator SEBI has said that a minimum of 20% of the salary of the key employees of asset management companies (AMCs) will have to be through Mutual Fund units.
Gold prices decline, down Rs 10,000 from highs
Gold prices extended decline to the seventh straight day on Friday, amid weak global cues. Gold has struggled in the year so far as a stronger USD and rising US bond yields have led investors to move away from the precious metal.
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