Sensex ends the week up 1.8%, Nifty 2% after hitting record levels
The Bank Nifty index was up 3.8% with Nifty PSU Bank gaining 5.2%. BSE Midcap gained 2.1% and BSE Small Cap was up 1.3%.business Updated: Apr 28, 2017 16:25 IST
Investors overcame the euphoria of the Sensex crossing the 30,000-level and booked profits, dragging down shares on Friday.
The 30-share benchmark Sensex ended down 111 points, or 0.37%, at 29,918.40. The Nifty closed down 0.4% at 9,304.05.
However, the benchmark indices posted their biggest weekly gain since mid March.
Sensex and Nifty touched record highs this week--the BSE index touched all-time high 30,133.35 while Nifty crossed the 9,360 on April 26.
The week was marked by investor optimism over US President Donald Trump’s tax plans, modest corporate earnings and a surge in rupee value to 20-month high. Shares across the world fell as Trump failed to provide clarity on the tax cuts.
During the week, Sensex gained 1.8% while Nifty ended up 2%. The Bank Nifty index was up 3.8% with Nifty PSU Bank gaining 5.2%. BSE Midcap gained 2.1% and BSE Small Cap was up 1.3%.
The benchmark BSE Sensex gained 1.8% and the broader NSE Nifty was up 2% this week, their best performance since mid-March as hopes of improving corporate earnings and accelerating economic growth lifted the indexes to all time highs.
BSE Midcap gained 2.1% and BSE Small Cap was up 1.3%.
The Bank Nifty index was up 3.8% with Nifty PSU Bank gaining 5.2%.
“Markets have been rising for so long. Any selloff can be partly attributed to profit taking, especially ahead of the three-day weekend,” said Deepak Jasani, head of retail research at HDFC Securities.
Asian markets were weak with Japan’s Nikkei and Hong Kong’s Hang Seng closing down 0.3% each, Korea’s Kospi was down 0.2% and Singapore’s Strait Times was up 0.1%. Europe trade mixed.
Concern about global trade and U.S. President Donald Trump’s “America First” policies kept appetite for risky assets in check on Friday, setting world stocks on the path to a sluggish end to what will still be their fifth straight month of gains.
In an interview with Reuters, Trump called the five-year-old trade pact with South Korea “unacceptable” and said it would be targeted for renegotiation after his administration completes a revamp of the North American Free Trade Agreement (NAFTA) with Canada and Mexico.
Trump’s comments stunned South Korean financial markets, sending Seoul stocks and the won into reverse.
Saturday marks Trump’s 100th day in office and his attacks on free trade and scepticism about his administration’s ability to see through tax and spending campaign promises has dented some of the enthusiasm in markets that followed his election win.
“Trump is reaching the 100 day mark with nothing to show for it and these recent comments just coincide with that. They (the U.S. administration) are finding it hard to push through fiscal plans and all this rhetoric is probably related,” Kiran Kowshik, strategist at Unicredit. (With inputs from Reuters)