Ease of biz, positive macro data propel equity indices to new highs

Mumbai, Nov 4 : Bolstered by an upbeat domestic macro data and global cues, the two key Indian equity indices -- BSE Sensex and NSE Nifty50 -- rode the bulls to scale new highs during the week ended Friday.

According to market analysts, India's advancement to the top 100 in the World Bank's Ease of Doing Business global rankings, along with a strengthening rupee and healthy buying in index heavyweights, gave a boost to the upward rally of the indices for the fourth consecutive week.

On Friday, the broader Nifty50 of the National Stock Exchange (NSE) hit a new 52-week high of 10,461.70 points intra-day, and closed trading at record 10,452.50 points.

On a weekly basis, it edged higher by 129.45 points, or 1.25 per cent.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, too, saw a strong closing at 33,685.56 points -- up 528.34 points, or 1.59 per cent, on a weekly basis.

The Sensex hit a new 52-week high of 33,733.71 points on intra-day basis.

"Carrying on from last week, markets continued to surge higher this week to touch new life highs," said Deepak Jasani, Head - Retail Research, HDFC Securities.

"Sectorally, the top gainers were realty, PSU banks, bank Nifty and pharma indices. The top losers were IT, metal and FMCG indices."

According to Vinod Nair, Head of Research at Geojit Financial Services, market witnessed strong up-move led by affirmative signs of recovery in domestic earnings and rally in index heavyweights.

"Strong core industries data, US Fed status quo on interest rate and positive global cues supported this trend. Market was enthused by September core industries data which grew by 5.2 per cent, showing signs of revival in industrial growth, easing of GST and pick-up in restocking in the economy," said Nair.

"There were ample signs of reversal in corporate earnings growth, with better than expected results from index heavyweights, which improved the market sentiments," he added.

On the currency front, the rupee strengthened by 50 paise to close at 64.55 against the US dollar from its last week's close at 65.05.

Market observers pointed out that although most macro indicators gave a boost to market sentiments, some momentum was lost on account of lower-than-expected automobile sales numbers for the month of October.

"Domestic markets touched a lifetime high after India's ranking rose 30 notches to 100 in the World Bank's Ease of Doing Business Survey for 2018. Besides the positive sentiment driven by macro indicators and ease of doing business, global markets have also been supportive for the Indian markets," said D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors.

"However, it lost nerve soon to close lower after the announcement of muted auto sales numbers. The government's recent recapitalisation plan and 'Bharatmala Pariyojana' have boosted market sentiment and fuelled growth recovery hopes," Aggarwal told IANS.

Provisional figures from the stock exchanges showed that foreign institutional investors off-loaded stocks worth Rs 8,336.86 crore during the week, while the domestic institutional investors divested in scrips worth Rs 354.42 crore.

Figures from the National Securities Depository Ltd (NSDL) revealed that foreign portfolio investors (FPIs) invested in equities worth Rs 2,773.08 crore, or $179.57 million, during October 30-November 3.

The top weekly Sensex gainers were: Bharti Airtel (up 11.60 per cent at Rs 541.35); Axis Bank (up 11.46 per cent at Rs 540); ICICI Bank (up 4.95 per cent at Rs 315.85); Lupin (up 4.84 per cent at Rs 1,049.25); and HDFC (up 4.56 per cent at Rs 1,775.35).

The losers were: Mahindra and Mahindra (down 3.95 per cent at Rs 1,331.15); Hero MotoCorp (down 2.80 per cent at Rs 3,690.80); Tata Steel (down 2.39 per cent at Rs 708.90); Infosys (down 2.20 per cent at Rs 926.65); and Bajaj Auto (down 2.02 per cent at Rs 3,223.10).