The Indian stock market continued to witness the bull run this week, marking a 1.7 per cent increase and the third consecutive weekly gain, with Sensex hitting 85,000 for the first time and Nifty trading at an all-time high.
The benchmark indices saw a phase of sector rotation. Large-cap stocks are receiving more inflows compared to mid and small-caps, which had been market favourites until recently.
Sectors like public sector banks, defence and railways, which saw heavy participation earlier, are gradually being overshadowed by under-performers 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 per cent, making it the best-performing sector, followed by CNX Auto, which gained 3.5 per cent.
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 per cent at 85,571 and Nifty was down 37 points or 0.14 per cent at 26,178. Nifty Bank fell 541 points or one per cent 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. Rupee support is seen in the 83.80-83.90 range, while resistance lies at 83.50-83.60, according to experts.
Gold prices remained relatively flat to weak, hovering near $2665 in Comex, down by $8, while in MCX, there was minor profit booking around Rs 76,100, with a decline of Rs 150. This pullback comes after a strong rally in gold prices earlier this week, where 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.
Additionally, China’s economic stimulus announcement has bolstered investor confidence, resulting in notable positive momentum in global markets, particularly within Asian indices.
Hrishikesh Yedve from Asit C. Mehta Investment Interrmediates said that the index on a weekly scale has managed to close above the breakout of the rising channel pattern, indicating strength.
Indian share market ends in red ahead of key global policy decisions
Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.
Buy on dips strategy working well in Indian stock market amid sharp rebound
The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on Saturday.
India’s GDP growth to hold steady in FY25, likely to clock 6.7 pc in FY26
India's economic growth will continue to hold steady in FY25 despite global uncertainties, with a projected GDP at 6.7 per cent in FY26, a report showed on Friday.
Sensex closes at 82,133 after 2,000 pts rally from day low
According to the experts, "Currently, the market is anticipating a revival in consumer spending, driven by the festive season and year-end holidays, adding to the sentiments. Additionally, an expectation of an increase in the US spending is propelling the IT sector."