The Nifty and Sensex ended one percent higher this week led by gains in metal, auto, realty and pharma sectors.
This was a strong week for the Indian indices amid strong foreign fund inflows on the expectation the current coalition government would return to power.
Hopes of the Reserve Bank of India (RBI) slashing interest rate in its monetary policy decision next week also boosted sentiment. Investors now await cues from the corporate results season which is set to start from mid-April.
The S&P BSE Sensex settled at 38,673, up 127 points, while the broader NSE Nifty50 ended at 11,624, adding 54 points. Meanwhile, in broader markets the Nifty Midcap index outperformed frontline indices rising one percent, while the Nifty Smallcap was flat.
Both indexes have gained about seven percent in March, making it the best month since March 2016 and over one percent for the week in what is their sixth straight weekly rise.
Among sectors, the Nifty Media rose the most, up 2.3 percent followed by the Nifty Bank (up 2.8 percent), the Nifty Energy (up 2 percent), the Nifty Metal (up 2 percent) and the Nifty Pharma (u[p 1.6 percent)
Banking and financial stocks were the major gainers on the Nifty50 this week. Indiabulls Housing was the best performing stock this week, gaining 18 percent. The stock is down 30 percent in last one year as compared to a 15 percent jump in the Nifty and a 23 percent rise in the Nifty Financial Services index.
Yes Bank (up 8.7 percent), SBI (up 7.6 percent), Bajaj Finance (up 6.5 percent) and Vedanta (up 6.3 percent) were the other top gainers in the index.
Yes Bank rose nearly nine percent as the bank has benefited since Ravneet Gill took charge as the new chief executive officer earlier this month, analysts said, while adding that the stock is seen gaining in the near future led by a recovery in assets and expenditure growth.
Meanwhile, Vedanta rallied over six percent as the company announced an oil discovery in its Krishna Godavari basin block in the Bay of Bengal. Vedanta holds 100 percent participating interest in the block.
Auto stocks were among the major losers this week, extending losses of last week on the Nifty50 amid brokerage downgrades and reports of production cuts.
Eicher Motors fell the most on the Nifty this week, down 4.3 percent as Bank of America Merrill Lynch downgraded the stock to 'underperform' on near-term margin pressure. The brokerage also cut its target price to Rs 19,000 from Rs 26,000 per share. Hero Moto Corp and Bajaj Auto also fell 1.5 percent and 1.2 percent respectively. HeroMoto Corp and Baja Auto also fell 2 percent and 1.3 percent, respectively.
IT stocks also witnesed a decline as rupee gained during the week. Wipro slipped over two percent this week, while, Tech Mahindra slipped 1.6 percent.
Hindalco and Bharti Infratel also declined 2.2 percent and 1.1 percent, respectively for the week.
In the midcap space, GMR Infrastructure added nearly 14 percent on proposed investment from Tata Group, GIC and SSG Capital worth Rs 8,000 crore. The company announced a proposed investment by Tata Group, an affiliate of GIC, Singapore’s sovereign wealth fund, and SSG Capital Management in its airports business
Dewan Housing was up 12 percent on reports that Piramal Enterprises is in advanced stages of negotiation to acquire a major shareholding in the company.
Union Bank of India also rose 10 percent as it had raised Rs 426 crore from its share sales to employees against a target of about Rs 470 crore.
Balkrishna Industries and Canara Bank also gained 9 percent and 7.2 percent, respectively.
Reliance Communications fell over 20 percent this week followed by Jubilant Life Sciences (down 11.6 percent), Prestige Estates (down 6 percent), Max Fin (down 3.9 percent), and Dr Lal Pathlabs (down 3.5 percent).
Reliance Communications fell over 20 percent, extending last week's decline after IndusInd Bank and Axis Trustee Services sold 15.6 percent stake pledged with them. According to the regulatory filing, IndusInd Bank sold 4.52 percent stake, while Axis Trustee invoked shares equal to 11.08 percent pledged with the company.Jubilant Life Sciences fell over 11 percent after United States Food and Drug Administration (USFDA) classified API manufacturing facility, in Nanjangud, Mysore, as Official Action Indicated (OAI).