A highly eventful week ended with smart gains as indices snapped a four-week losing streak. Nifty reclaimed the 11,100-mark once again after the RBI reduced the interest rate by 35 bps in its Bi-monthly meeting.
Media reports stated a potential rollback of surcharge on the super-rich and a delay in vehicle registration fees by a year lifted sentiment. Reports of a possible capital market booster package from the government and meeting between top FPIs and Finance Ministry officials kept the momentum going. In addition, the Finance Minister also met the India corporate Inc to discuss steps to combat economic slowdown and the government would soon be taking steps to revive the economy, according to reports.
If that was not enough, monsoon rains were above average for the second straight week, according to the IMD easing concerns of drought. India received 28% more rainfall than the 50-year average in the week. Overall, India has received 5% less rain than average since the start of the monsoon season on June 1.
For the week, the Auto index rose by 3%, Bank Nifty gained by 3%, IT index rose by 2.5%, FMCG index was up by 1.2%, Pharma index edged higher 0.7% and Infra index edged higher by 0.4%. On the other hand, the metals index declined by 2.5%.
There was a lot of action in the commodities markets. Crude Oil prices tumbled to a 7- month low during the week, extending recent heavy losses. While gold prices surpassed Rs38,000 per 10 gram during the week.
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