Mumbai: The Indian stock market continued to witness the bull run this week, marking a 1.7 percent increase and the third consecutive weekly gain. Sensex hit 85,000 for the first time, and Nifty traded at an all-time high.
The benchmark indices saw a phase of sector rotation. Large-cap stocks are receiving more inflows than mid and small-caps, which were market favourites until recently.
Sectors like public sector banks, defence, and railways, which saw heavy participation earlier, are gradually being overshadowed by underperformers such as pharma, private banks, and mid-size IT.
These sectors, with their attractive valuations, are likely to lead the next market phase for the coming quarters, according to Krishna Appala from Capitalmind Research.
Metals took the spotlight, with CNX Metals rising by over 6 percent, making it the best-performing sector. It was followed by CNX Auto, which gained 3.5 percent.
The initial momentum in Bank Nifty following the Fed rate cut didn’t hold, leaving the index flat by the week’s end, said analysts.
Indian equity indices closed in the red on Friday as profit booking was seen at a higher level. At close, Sensex was down 264 points, or 0.31 percent, at 85,571, and Nifty was down 37 points, or 0.14 percent, at 26,178. Nifty Bank fell 541 points, or one percent, to 53,834.
The rupee weakened by 0.04, trading at 83.70, despite the dollar remaining flat at 100.25. US economic jobless claims data showed marginal improvement, indicating continued strength in the US economy. According to experts, rupee support is seen in the 83.80-83.90 range, while resistance lies at 83.50-83.60.
Gold prices remained relatively flat to weak, hovering near $2665 in Comex, down by $8. In MCX, there was a minor profit booking of around Rs 76,100, with a decline of Rs 150. This pullback comes after a strong rally in gold prices earlier this week, when prices surged by Rs 1,300, mainly driven by the liquidity easing from the Fed’s policy decision.
The market responded positively to the Fed’s rate cut and stable economic data points, which accelerated foreign inflows and generated momentum in domestic markets.
China’s economic stimulus announcement has also bolstered investor confidence, resulting in notable positive momentum in global markets, particularly within Asian indices.
Hrishikesh Yedve from Asit C. Mehta Investment Intermediates said that the index on a weekly scale has managed to close above the breakout of the rising channel pattern, indicating strength.
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–IANS
