Weekly Market Report

Market To Consolidate After One-Way Rally – Auto Stocks

Weekly Wrap

The Indian market closed the week ended November 29, 2019 on a positive note, the BSE Sensex climbed 1.08% to end the week at 40,793.81 while the NSE Nifty 50 was up 1.19% for the week to close at 12,056.05. During the week, Sensex and Nifty touched new all time highs, extending the rally for the fifth consecutive week. However on Friday, the indices witnessed profit booking amidst starting of new derivative series of December expiry. The week was marked by some important news, ranging from market heavyweight Reliance Industries’ crossing of Rs 10 lakh crore market capitalization to India’s GDP touching a 26-quarter low at 4.5%. Reliance became the first company ever in India to cross the coveted milestone of Rs 10 lakh crore market cap. However among this good news and ongoing market rally, the GDP shocker came on Friday evening, with 26-quarter low number of 4.5% GDP growth in Q2FY20, which clearly reflects the severity of the current economic slowdown.

Weekly Wrap Report


Sectoral Performance for the Week

Among sectoral indices, 10 out of the 11 sectoral indices ended in green for the week, led by Nifty PSU Bank Index’s 4.3% gain. Other prominent gainers for the week were Nifty Metal (+4.1%), Nifty Private Bank (+2.9%), Nifty Bank (+2.7%), Nifty Realty (+2.3%), Nifty Financial Services (+1.8%),  and Nifty Pharma (+1.5%), while Nifty Auto (+0.6%), Nifty FMCG (+0.5%) and Nifty IT (+0.01%) closed the week on a flat note. Nifty Media Index was the sole loser for the week with 7.3% loss, mainly contributed by Zee Entertainment’s around 18% decline.


Best & Worst Performers for the Week

The broader markets also closed the week on a positive note, as the Nifty 500 Index closed 1.39% higher for the week, led by gains in companies like L&T Finance Holdings, Adani Green Energy and Magma Fincorp. The best performers for the week were Adani Green Energy (+28.5%), Magma Fincorp (+27.4%), L&T Finance Holdings (+24.7%), Future Consumer (+23.2%) and Indiabulls Housing Finance (+22.4%). The worst performers for the week were Dish TV (-20.3%), Zee Entertainment (-18.2%), Renuka Sugars (-12.4%), Reliance Infrastructure (-11.4%) and Jain Irrigation (-7.9%).

Auto stock -Performers for the Week.

Market Outlook Going Forward – Market To Consolidate After One-Way Rally – Auto Stocks Will Be In Focus As Monthly Number Arrives

The Indian market has seen a one-way rally for the last few weeks. After a breath-taking rally, we expect some consolidation and profit booking in the market going forward. The negative GDP number that came on Friday evening will have negative impact the market sentiment, albeit for a short term. The focus on next week will be on the Auto stocks, as the companies come out with their monthly sales numbers. Overall, we advise our investors to book partial profits in their portfolios if they have participated in the rally and wait for some weakness in specific stocks to re-enter at lower levels.

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