Momentum with bulls, but bears are on the prowl

New Delhi, July 7: Markets continued their upward trajectory and added to their gains. At one point in time, BSE SENSEX had crossed 80,000 and registered gains of 10,000 points since the low made on June 4, when results for the elections were announced.

Ten Thousand points or 14.28 per cent is a spectacular gain by all standards and should be taken as a big positive. Markets are witnessing huge inflows where FPIs were caught napping with their bearish mindset, and on the other hand, domestic funds are flush with SIP funds, which have now begun crossing Rs 25,000 crore monthly.

At the end of the week, BSE SENSEX gained 963.87 points or 1.22 per cent to close at 79,996.60 points, while NIFTY gained 313.25 points or 1.30 per cent to close at 24,323.85 points.

The broader markets saw BSE100, BSE200 and BSE500 gain 1.57 per cent, 1.71 per cent and 1.91 per cent, respectively. BSE MIDCAP gained 2.77 per cent, while BSE SMALLCAP was up 3.88 per cent. BSE SENSEX gained on three of the five sessions and lost on two, while NIFTY gained on four sessions and lost on one.

Benchmark indices made new lifetime highs, and the intraday high on BSE SENSEX was at 80,392.64 points and the closing high at 80,049.67 points, both of which were made on Thursday, July 4. The NIFTY intraday high was at 24,401 points, while the closing high was at 24,323.85 points. The intraday high was made on Thursday, while the closing high was made on Friday.

The Indian Rupee lost 10 paise or 0.12 per cent to close at Rs 83.48 to the US Dollar. Dow Jones gained on three of the four sessions and lost on one. It was up 257.01 points or 0.66 per cent to close at 39,375.87 points.

There is sector rotation happening, and this week, it was the turn of IT stocks.

The BSE IT sector was the top sectoral gainer at 4.15 per cent. Besides the IT stocks, initial momentum was given by HDFC Bank as the FPI limit dropped below 55 per cent and fresh FPI buying emerged. This propped up the share, which rose from Rs 1,684 to a high of Rs 1,792 before profit-taking saw the share close at Rs 1,648, a weekly loss of Rs 36 or 2.14 per cent.

The date for the Union Budget has been announced as Tuesday, July 23, on expected lines. This week would also see July futures expire on Thursday, July 25, making that an extra volatile week. Keeping this in mind, the flow of IPOs on the main board seems to have taken a pause for the time being.