Indian equity benchmarks attained new heights in the four-session trading week ended October 14, boosted by auto, metal and select financial shares, though losses in IT stocks limited the upside. It was the best week for both headline indices in more than a month, and the best in five months for the Nifty Bank.
The Sensex and Nifty50 settled at 61,306 and 18,338.6 for the week -- both record closing highs. For the week, the 30-scrip index rose 1,246.9 points or 2.1 percent and the Nifty50 added 443.4 points or 2.5 percent.
Broader indices supported the overall market, with the Nifty Midcap 100 and Smallcap 100 barometers rising 3.4 percent and 2.6 percent respectively.
The week that was
The week opened with Dalal Street reacting to Tata Consultancy Services' (TCS) earnings for the July-September period, after the IT major's numbers fell short of Street expectations.
The IT pack though trimmed losses later in the holiday-truncated week after Infosys, Wipro and Mindtree's results met analysts' estimates.
Investors pinned hopes on the festive season for recovery in automobile sales. Strong business updates from lenders also boosted investors' morale.
Official data showing deceleration in consumer inflation also aided market sentiment.
"The IT sector remained under pressure at the beginning of the week following a weak start to the earnings season. However, it regained momentum as most sector majors reported better-than-expected earnings," said Vinod Nair, Head of Research at Geojit Financial Services.
Globally, investors remained on the back foot amid concerns about inflation. Earnings reports remained in focus as investors assessed the pace of recovery from pandemic lows.
The PSU banking index saw a weekly gain of 6.5 percent, rising most among the sectors tracked by NSE. The Nifty Auto and Metal indices were next, rising 6.1 percent and 5.9 percent respectively.
The Nifty Bank index climbed up 4.1 percent -- its best week in five months.
On the other hand, IT stocks declined with the onset of earnings, as Infosys, Wipro and Mindtree reported their quarterly numbers, following TCS results last week. The Nifty IT gauge declined 1.8 percent.
Tata Motors, Adani Ports, Wipro, ITC and Grasim were the top performers among 39 gainers in the Nifty50 universe. On the other hand, TCS, HDFC Life, HCL Tech, Coal India and SBI Life were among the top laggards.
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In the Nifty Midcap 100 and Smallcap 100 packs, IDBI Bank, Tata Power, Union Bank, Borosil Renewables and MSTC -- rising between 20.1 percent and 39.1 percent -- were the top weekly gainers. Vodafone Idea, Kansai Nerolac, New India Assurance, SREI Infra and Vikas WSP -- down between four percent and 22.3 percent -- were the top losers.
A total of 353 scrips on BSE 500 -- the broadest gauge on the bourse -- rose for the week.
The road ahead
Analysts await the next round of quarterly earnings reports from India Inc for domestic cues.
Banking stocks will be in focus in the coming days as the sector is set to kickstart its earnings season, said Vinod Nair, Head of Research at Geojit Financial Services.
"With the expectation of a strong recovery in corporate earnings, the Indian market is positioned to continue its bull run. However, any deviation from market expectation may lead to short-term correction in the respective segments," he said.
(Edited by : Aditi Gautam)