Weekly Market Report: Market Witnessed Marginal Gains; Sensex Outperformed Broader Market Indices

• 488
• 

After witnessing losses in the first week, this week market ended in green. Sensex rose by 0.88%, outperformed the broader market indices; S&P BSE Midcap and S&P BSE Smallcap traded marginally higher by 0.19% and 0.05%, respectively.

Major Equity Indices Performance

Initially, on Monday, the market closed on a favourable note after witnessing gains in real estate stocks on account of hope of GST rate cut for under-construction and finished houses to 5%. Moreover, ONGC’s announcement that its subsidiary has recovered significant oil discovery in onshore block boosted the market sentiments. On the next day, the market gained marginally on account of optimism around the US and China’s trade talk. However, on the domestic front, investors traded cautiously ahead of corporate earnings results. Later, World Bank’s forecasted GDP to grow at 7.3% in 2018-19 and 7.5% in the next two years favoured sentiments. Further, the US and China’s trade talk extension by 1 day led to an expectation of sound resolution between the two countries.

On Thursday, the market snapped the last 4-day rally as the Sensex lost by 0.29%. Investors traded cautiously ahead of release of quarterly results by IT giant. Further, on the global front, the US-China trade talk ended without any significant resolution. Last day, the market closed in red due to negative sentiments hit by IT company’s quarterly earnings as the results did not meet expectations. Additionally, industrial growth came to 17-month lowest point of 0.5% in November on account of fall in manufacturing sector, especially consumer and capital goods, which affected the market adversely.

Sectoral Indices Performance

Gaining Sectors

On BSE Sectoral front, FMCG and consumer durable were the top gaining sectors, up by 2.12% and 1.72%, resp. Media reports showed that the upswing in consumption demand in the third quarter lifted these sectors. Healthcare, bankex, IT, power, and auto also traded marginally higher.

Losing Sectors

S&P BSE Oil & Gas was the worst performing sector, lost 2.40% followed by metal which plummeted 0.95%. Further, energy and capital goods stocks also witnessed some selling pressure, plunged 0.91% and 0.82%, respectively.

Top Performers & Losers

Final Note:

In the past week, despite a few ups and downs which are a part of the market’s tendencies, Sensex was able to outperform the broader market indices. The volatility in the market will persist according to experts due to several things happening around the market. However, these are just a few of the fluctuations which are meant to pass with time. For more such regular updates, visit us at MySIPonline. We also provide regular recommendations on mutual funds which you can get from the blogs section here.