Sensex and Nifty Surge, Clocking Best Weekly Gains in Three Months
The Indian stock market closed the week on a high, with Sensex and Nifty 50 extending their winning streak. The rally was driven by strong foreign investor inflows and broad-based buying across key sectors like PSU banks, realty, and pharma.
The Indian stock market wrapped up the week on a jubilant note, with benchmark indices extending their gains for a second straight session. The BSE Sensex closed at 82,500.82, up by 328.72 points (0.40%), while the NSE Nifty 50 settled at 25,285.35, a gain of 103.55 points (0.41%). This positive momentum resulted in the best weekly performance for the indices in over three months, bringing cheer to investors.
A Day of Broad-Based Gains
Friday’s market rally was not confined to a few heavyweight stocks; it was a broad-based surge with buying interest across multiple sectors. The overall market capitalisation of BSE-listed firms swelled by approximately ₹2 lakh crore in a single session, a clear indicator of the bullish sentiment.
The advance-decline ratio also remained comfortably in favour of the bulls, with 2,474 stocks advancing on the BSE against 1,706 that declined, indicating widespread positive sentiment.
Key Drivers: FPI Inflows and Earnings Optimism
Several factors contributed to the market’s strong performance. A primary driver was the sustained buying by Foreign Portfolio Investors (FPIs), who have been net buyers for the past few sessions. This renewed interest from foreign investors is a significant vote of confidence in the Indian economy’s growth prospects.
Additionally, optimism ahead of the ongoing Q2 earnings season added to the upbeat mood, although some specific results tempered the gains.
Sectoral Stars and Laggards
The rally was led by strong performances in the PSU Bank, Realty, and Pharma sectors. The Nifty PSU Bank, Realty, and Pharma indices all saw significant buying interest, emerging as the day’s top performers.
On the flip side, the Metal and IT sectors saw some profit-booking and ended in the red. The Nifty IT index, in particular, closed flat, weighed down by a key component’s quarterly results.
Among individual stocks, State Bank of India (SBI), Maruti Suzuki, Axis Bank, NTPC, and Power Grid were among the top gainers in the Sensex pack. In contrast, Tata Consultancy Services (TCS) was a notable laggard, slipping 1.1% after posting weaker-than-expected September-quarter earnings.
What to Watch Next
As we head into a new week, investors will be keeping a close eye on the following:
- Global Market Cues: International market trends will continue to influence domestic sentiment.
- Q2 Earnings Season: The ongoing quarterly earnings season will be crucial for stock-specific movements.
- FPI Activity: The trend of FPI inflows will be closely monitored as a key indicator of market direction.
- Technical Levels: For the Nifty 50, the 25,000 level is seen as a crucial support zone. A sustained move above this could pave the way for further gains.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before making any investment decisions.
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