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Nifty50 clocks best week in 7 months; 2nd weekly gain for banking index

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Banking stocks participated in the rally for a second straight week, though hesitantly. Broader markets outperformed the headline indices.

Nifty50 clocks best week in 7 months; 2nd weekly gain for banking index
Dalal Street surged to new peaks yet again with a record high in Reliance Industries shares on Friday. Oil & gas, consumer durable and metal shares along with heavyweights such as Reliance Industries, Titan and Bharti Airtel helped the market log its best trading week since February.
Banking stocks participated in the rally for a second straight week, though hesitantly. Broader markets outperformed the headline indices.
The Nifty50 index index rose 618.40 points or 3.70 for the week -- its best weekly performance since the week ended February 5 that had begun with the presentation of Union Budget in Parliament. The 50-scrip index had finished that week with a 9.46 percent ( 1,289.65 points) gain.
The leaner benchmark, the 30-strong Sensex index, advanced 2,005.23 points or 3.57 percent -- its best weekly gain in the past three months.
During the week, India's GDP reading met Street estimates as the economy showed expansion of 20.1 percent in Q1 due to a low base. Auto stocks remained in focus as manufacturers reported their monthly sales reports.
"The positive sentiments in domestic market remained throughout the week as domestic economic data releases were in favour of the bulls," said Vinod Nair, Head of Research at Geojit Financial Services.
Anxiety over an earlier-than-expected tapering of stimulus in the US subsided after the dovish tone of the Federal Reserve Chairman at the Jackson Hole symposium, say analysts.
Investors globally awaited data from the US for clues on the timing of tapering. Rising cases of the Delta variant of Covid-19 kept them cautious.
All of NSE's sectoral gauges finished the week stronger, led by the Nifty Realty index, which jumped 10.76 percent. The consumer durables (8.03 percent), oil & gas (5.89 percent) and metal (4.13 percent) barometers were next.
IT and banking shares -- two spaces with the maximum weightage in the Nifty50 basket -- saw modest gains, as the Nifty IT and Nifty Bank indices rose 1.69 percent and 3.18 percent respectively.
Financial services shares command the maximum weightage of 37.58 percent in Nifty50, followed by IT counters (18.01 percent).
Shree Cements, Titan, Bharti Airtel, Asian Paints, Eicher Motors and Bajaj Finance were the top performers among the 47 weekly gainers in the Nifty50 basket. Mahindra & Mahindra, Infosys and Tech Mahindra were the only laggards.
Nifty gainers
StockWeekly change
Shree Cements13.17%
Titan10.80%
Bharti Airtel10.64%
Asian Paints9.94%
Eicher Motors8.79%
Bajaj Finance7.99%
RIL7.23%
Indian Oil6.75%
Dr Reddy's6.48%
Axis Bank6.06%
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Nifty losers
StockWeekly change
M&M-3.26%
Infosys-0.48%
Tech Mahindra-0.24%
Broader indices beat the headline gauges with their weekly performances. The Nifty Midcap 100 and Smallcap 100 indices jumped 4.89 percent and 4.05 percent respectively. More than 400 stocks in the BSE 500 index -- the broadest gauge on the bourse -- registered weekly gains.
Sobha, IEX, Brigade, Adani Transmission, Vodafone Idea, Prestige and Exide -- rising between 20.16 percent and 28.12 percent -- were the top winners in the broader segments. On the flipside, Bank of India, AU Small Finance, Burger King, Sudarshan, Swan Energy, Cera Sanitary and Mahindra Logistics -- dropping between 5.81 percent and 11.95 percent -- were the top losers.
The road ahead
Analysts await data on industrial production in the country for domestic cues.
"Strong domestic economic numbers are supporting the upward movement in the market even when valuations are at high levels," said Nair.