The benchmark indices ended marginally higher on Friday with the 50-unit S&P CNX Nifty closing just above its psychological level of 7,500 amid concerns over growth in world’s largest economies — the US and China. The benchmark BSE Sensex ended in the red for the third straight week.
On Friday, foreign institutional investors (FIIs) bought shares worth $30 million, while domestic institutional investors (DIIs) sold shares worth $28.73 million, according to provisional data on the exchanges. YTD, FIIs have bought shares worth $9.9 million.
On Friday, the 30-share BSE Sensex ended higher by 37.25 points, or 0.15%, at 25,099.92 points, while the broader 50-share Nifty gained 15.60 points, or 0.21%, to close at 7,508. The US consumer spending increased 0.2% in May after being flat in April, and was down for a second straight month when adjusted for inflation, the US Commerce Department said on Thursday. Meanwhile, China’s industrial profits in May grew 8.9% y-o-y, which was lower than the 9.6% y-o-y growth seen in April. The yields on the benchmark 10-year bond ended marginally higher at 8.74% on Friday.
The market gains were led by IT and pharma stocks. Sun Pharma (4%), TCS (3.8%), Cipla (2.6%), Dr Reddy’s Laboratories (1.9%), Wipro (1.9%) and ITC (1.1%) were the top gainers on the 30-share Sensex.
Ranbaxy gained 8.2% intraday to touch a 52-week high of R510.45 on Friday after the pharma major, in an exchange release, informed that its wholly-owned subsidiary Ohm Laboratories has received approval from the USFDA for the generic version of blood pressure drug Diovan. The scrip ended 5.4% higher at R497.15.
It was a dismal week, with the benchmark indices retreating for three out of five sessions and the BSE Sensex ending lower by 0.02%.
On Monday, the market fall was led by ITC after health minister Harsh Vardhan proposed a tax hike on cigarettes from R2 to R3.5 per stick. The scrip ended 6.5% lower at R314.05. On Tuesday, the markets rallied as Brent crude prices softened. On Thursday, oil & gas stocks were the major losers as the government decided to hold the gas price hike by another three months. ONGC fell 5.9% to post its biggest single-day fall in a year.
However, experts remain bullish on the markets. “If India can engineer a new economic and, hence, a new earnings, cycle, most of the Street could be surprised by the amount