Benchmark indices rallied this week as global cues remained solid after Minutes of the US Fed meeting suggested that hike in interest rates in the US may be pushed further back into the next year.
Markets in Asia, Europe and US all saw sharp rallies. The Chinese Shanghai Composite, which opened almost after a weak of holidays also supported the global markets.
Going forward the rally would depend much on the results season that pans out. Major corporate like Infosys, TCS, Hindustan Unilever and Reliance will declare their results next week. Most of these companies are heavyweight stocks from their sector and any disappointment could drag the stock prices and hence the indices lower.
While Infosys will declare results on Oct 12, TCS would be on Oct 13, HUL on Oct 14 and Reliance Industries on Oct 16.
The top gainers this week were most of the stock from the beaten down sector of metals. Nifty Stocks that saw sharp gains this week were:
Vedanta - 24%
Tata Motors - 20%
Hindalco - 18%
Tata Steel - 18%
Jindal Steel - 15%
Most of the stocks that gained were from the metal space which has been badly hammered in the last few weeks. Hopes are that economic recovery in India would see financial performance of these being companies much better.
The rupee also saw a sharp recovery this week as the US Federal Reserve interest rate hike may have been pushed into the next year.
The one interesting feature of this week is that FIIs have stopped selling, while DIIs have begun selling. It would be interesting to see what the trend is going into the future.
On Friday FIIs net bought shares worth Rs 483 crore in the cash market, while domestic investors sold to the tune of Rs 369 crores.
All in all expect some volatility going into the earnings season next week.