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An eventful week it was. BJP's landslide victory in Uttar Pradesh, US Federal Reserve's less hawkish tone and an update on Goods and Services Tax (GST) pushed the Nifty50 index to its fresh lifetime highs thrice in a holiday-truncated week. Interestingly, Sensex remained over 350 points away from its all-time high of 30,025-mark, while rupee appreciated against dollar to its multi-month high.
During the week ended March 17, the S&P BSE Sensex added 2.4% or 702 points to settle at 29,649, while Nifty50 gained 2.5% or 225 points to close at 9,160. The Nifty index had reclaimed its crucial 9,200-mark for the first time ever in intraday trade on Friday.
The under current in the market is strong as new money from both FIIs and DIIs continue to pour in spite of high valuation. Rupee has strengthened to a fresh 16 months high led by foreign inflows. Further, fall in crude prices and positive cues from GST council meeting added color to this rally
BSE Realty index surged 5%, followed by the BSE FMCG index (up 4.7%), and the BSE Consumer Durables index (up 4.4%). The BSE Capital Goods index and BSE Power index gained 4.3% and 3.3%, respectively, while, BSE Metal index rallied 3%.
Among individual stocks, Adani Ports, Tata Steel, ITC and HDFC advanced 8%, 7.3% and 6.8% and 5.7%, respectively. Sun Pharma gained 4.7%, while Maruti Suzuki, Larsen & Toubro and ICICI Bank jumped 4% each.
Losers included Coal India (down 8.5%), Bharti Airtel (down 5%) and GAIL (down 0.8%). ONGC and TCS were marginally lower.
One Nation One Tax
The GST Council, headed by Finance Minister Arun Jaitley and comprising representatives of all States, in its 12th meeting on Thursday cleared the SGST and UTGST bills. With this, all five legislations of the GST (CGST, SGST, IGST, UTGST and the compensation bill) now stand formally approved by the Council.
US Federal Reserve
The Federal Reserve Chair Janet Yellen, in a widely expected move, increased the interest rates in US by 25 basis points to a range of 0.75% to 1% on Wednesday, but appeared less hawkish than expected. This was the first increase in 2017 and third one in the last two years.
The move to lift the target overnight interest rate was taken on the back of steady economic growth, strong job gains and confidence that inflation is rising to the Fed’s target.
The Fed also stuck to its outlook for two additional rate increases this year and three more in 2018, which is in line with its outlook from December.
MARKET NEXT WEEK:
In the absence of major domestic and global cues, the investors will track the developments on the GST Bill. “For the week ahead market will look for more cues on GST rates which is expected to see stock or sector specific actions
Technical levels for market for coming week
When market is in positive sentiment then no technical levels work. As you can see from past week, though market was trading at 9000, most of us, predicted that Nifty will correct or atleast consolidate before making new highs but due to election result and GST council market has ignored all overbought technical levels and crossed 9200 in same week.
As this is all time high for Nifty, further upward rally for this week is expected to be consolidating before moving towards 9400.
At the downside, Nifty is having support at 9000.