Stock Markets on Monday – Expect some fireworks if markets reopen with gap on higher side; watch for ITC, index heavyweights, says analyst

The stock markets ended the week almost flat on Friday, albeit in the red snapping a three-day winning streak. Broader market Nifty50 ended almost 5 points lower than the Thursday closing price. Meanwhile, the 30-share BSE Sensex ended at 58,786.67, down by over 20 points.

On the weekly closing basis, the 50-share Nifty50 index gained over 1.8 per cent over the five trading sessions to end above 17,511. Nifty Bank ended at 37,105.65, gaining 2.5 per cent during the week. The small cap and mid cap indices were also clear winners. While the former was up over 4 per cent, the latter settled 3 per cent higher.  

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The top gainers on Nifty50 on Friday were Asian Paints, Grasi Industries, SBI Life Insurance Company, State Bank of India (SBI) and Bharat Petroleum Corporation Limited (BPCL). The top five losers on Friday were Divi’s Laboratories, Titan, HDFC, Tata Consumer Products and Kotak Mahindra Bank.  

As for the trends among the Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) is concerned, FIIs sold Indian equities worth Rs 1092 cr on Friday while DIIs were net buyers at Rs 386 cr.

Zee Business’ Kushal Gupta encapsulated the week for Zee Business viewers. The stock markets ended positively on 3 occasions during the week, The DIIs purchased equities worth Rs 6800 cr while the FIIs sold equities worth over Rs 8000 cr during the week.

The sectors which did well include PSU Bank, metal and realty. Each gained almost 4 per cent during the week gone by. Auto and FMCG sectors were also among the gainers and registered a 2 per cent growth. Sensex, was also up by 2 per cent.

The top performing stocks included Hindalco Industries Limited which has gained over 7 per cnt during the week. ITC also performed well and ended higher by 6.5 per cent from the last week closing price.

The stocks that were under pressure included Divis Laboratories and Coal India Limited which fell over 5 per cent each. The heroes of this week were IFCI and Just Dial as the stocks gained over 28 per cent and 17 per cent respectively. Trident was another small cap stock that gained 19 per cent during the 5 trading sessions.

The mid cap losers for the week were JSW Energy (-7.5 per cent) and Dr Lal Path Labs (-5.4 per cent).  

It will be interesting to see how markets reopen on Monday and perform over the week.

Analyst Sandeep Jain said that the week gone by, was good overall with markets performing very well on certain trading sessions. It was despite the volatility in the markets. The Nifty50 managed to end above 17,500. The broad-based sentiments were optimistic.

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Buying will come back if the markets open with a gap on Monday on a higher side, Jain said. His advice to investors is to continue buying mid cap and small cap stocks. The market will be keeping an eye on index heavy weights including ITC.