Sensex posts third straight weekly rise
MUMBAI:The Sensex has advanced for seven sessions in a row, its longest such streak since November, helped by stable world markets and robust domestic factory output data, coupled with easing inflation.
March quarter earnings and commentary are expected to provide further cues to the market going ahead.
BSE’s 30-share index advanced 1.68% this week, its third straight weekly gain. On Friday, the Sensex closed 0.27% or 91.52 points higher at 34192.65 points, its highest close since February 28. The National Stock Exchange’s 50-share Nifty ended 0.21% or 21.95 points higher at 10480.60 points, its highest close since 27 February.
“I think we saw some stability in global markets, and the noise around a trade war diminishing has helped Indian markets as well,” said Vaibhav Sanghavi, co-chief executive officer of Avendus Capital Public Markets Alternative Strategies LLP. Other analysts agreed. “Trump’s (US President Donald Trump) earlier hard stance seems to have tapered down and a trade war with China looks unlikely as of now. That has supported world equities,” said Amar Ambani, partner and head of research, IIFL Wealth Management Ltd. World stocks were set to post their biggest weekly gains in over a month as investors seemed to ignore the ambiguity over tension in the Middle East and the prospect of a global trade war. Meanwhile, there was good news on the domestic macroeconomic front.
Factory output in India, Asia’s third-largest economy, grew at a robust 7.1% in February, while retail inflation decelerated for the fourth consecutive month to 4.28% in March, leading to the expectation that the economy may be on a sustained recovery path, data released after market hours on Thursday showed.
Going ahead, the quarterly report card of Indian companies is expected to provide cues to the market.
“We are looking forward to the earnings season, and the first set of companies are likely to report decent numbers,” said Sanghavi.