The Indian benchmark indices rose 4 percent during the week boosted by optimism around Prime Minister Narendra Modi's win in 2019 Lok Sabha elections driven by financials.
Modi’s Bharatiya Janata Party (BJP) won 303 out of the 542 seats in the lower house of the parliament, in what is a first back-to-back majority for a single party since 1984.
The biggest gain during the week was witnessed on Monday when the indices gained 3.5 percent after the exit polls predicted Modi win. The market also shot to record levels in the previous session with the Nifty hitting 12,000-levels and Sensex crossing 40,000-mark but ended the day 0.7 percent lower.
On Friday, the indices ended 1.6 percent higher as market cheered the massive victory of Modi in the Lok Sabha elections led by financials, auto and realty stocks.
The BSE Sensex closed 623 points (1.6 percent) higher at 39,435, up 4 percent for the week, while the broader NSE Nifty50 ended 187 points higher (1.6 percent) at 11,844, up 3.8 percent for the week. The Nifty Midcap outperformed indices, adding 5 percent for the week.
All sectoral indices, except the Nifty IT, ended positive for the week. The Nifty PSU Bank index rose the most, up nearly 13 percent followed by the Nifty Realty (up 11 percent), the Nifty Infra (up 9 percent) and the Nifty Bank (up 6 percent) for the week. Meanwhile, the Nifty IT fell 1.7 percent, while the Nifty FMCG was flat.
IndusInd Bank was the top performer for the week on Nifty50, up nearly 20 percent as brokerages remained positive on the lender despite weak Q4 results. The management told CNBC-TV18 that the bank wanted to put Infrastructure Leasing and Financial Services (IL&FS) exposure behind FY19 as it turned into non-performing assets (NPA) in Q4.
Larsen & Toubro (L&T) rose 13 percent after it acquired over 4.5 lakh shares of Mindtree from the open market, taking its shareholding in the IT services firm to 26.93 percent, according to a regulatory filing.
Adani Ports rose 11.7 percent on the Modi wave. The trend shows that Adani Group stocks have historically performed well whenever the BJP government has tasted victory.
SBI, Indiabulls Housing, ICICI Bank and Grasim also rose in the range of 9.4-11.3 percent during the week.
Tech Mahindra was the worst performing stock for the week, down 6 percent after the company reported a 7.32 percent YoY drop in consolidated profit at Rs 1,132.50 crore for the March quarter. The IT firm had posted a profit of Rs 1,222 crore in the same quarter last year.
ITC slipped 3.5 percent as the outlook for consumption sector remains bleak.
Dr Reddy's fell 3 percent on poor March-quarter results. Revenue for the fourth quarter was up by 14 percent at Rs 4,016.60 crore against Rs 3,534.90 crore in the same quarter last fiscal, the company had said.
IT stocks were also under pressure during the week on rising rupee with Infosys, TCS and Wipro down between 1.2-2 percent.
In the midcap space, Adani Enterprises was the top performer, up 31 percent after Modi won the Lok Sabha elections with a massive mandate.
Bank of Baroda surged 22.5 percent after the company cut losses in the quarter ended March 2019. The bank in its BSE release reported a 68 percent decline in net loss at Rs 991.4 crore, compared to Rs 3,102.3 crore in the corresponding quarter of the last year.
Reliance Capital rose 18.7 percent after the company signed binding agreements with Nippon Life Insurance to sell its stake in Reliance Nippon Life Asset Management (RNAM).
Jet Airways was also up 18.7 percent after the Hinduja Group said it was considering a bid for Jet Airways (India) Ltd, which has been grounded for more than a month and is on a desperate hunt for an investor to restart flights.
Among other gainers, BEL advanced 21.6 percent this week followed by India Cements (up 19.8 percent), DLF (up 16.2 percent) and BEML (up 16.4 percent).
Torrent Pharmaceuticals was the top midcap loser for the week, down 7.2 percent after it reported a consolidated net loss of Rs 152 crore for the March quarter compared to a net profit of Rs 228 crore for the corresponding period last year.Among other losers, PVR fell 4.5 percent followed by Glenmark Pharma (down 4 percent), Page Industries (down 3.6 percent), Bata India (down 2.5 percent) and Godrej Consumer (down 1.3 percent).