It was a good week for Dalal Street, with benchmark indices once again approaching their all-time highs clocked late last month. Strong buying interest in IT and auto stocks, and select heavyweights such as Titan and ONGC pushed the market higher. The Nifty50 index registered a record closing high of 17,895, and the leaner, 30-scrip Sensex index climbed back atop Mount 60k to rest only at 60,059.
The Nifty IT index made a big comeback as it logged its best week in the past six months, following its worst in eight months.
For the week, Sensex added 1,293.5 points (2.2 percent) and Nifty gained 363.15 points (2.1 percent).
Broader indices outperformed the overall market for yet another week, each jumping more than three percent. It was the seventh straight weekly gain for the Nifty Midcap 100 gauge.
The week began with jitters across global markets on rising oil prices and US bond yields amid concerns about a debt default in the US. Wild movements in commodities kept investors cautious about inflation.
The appetite for risk improved for investors globally as crude oil eased, after hitting a multi-year high above $83 per barrel following the refusal of the OPEC Plus grouping to ramp up output more rapidly.
Back home, a scheduled, bi-monthly review by the RBI remained in focus for more clarity on money policy and interest rates going forward. Most analysts said the central bank's announcements were on expected lines.
"The expectation of good quarterly numbers and dovish policy measures by the RBI helped in adding investor confidence... Despite the global semiconductor shortage, auto stocks rallied in hopes of demand revival during the festive season," said Vinod Nair, Head of Research at Geojit Financial Services.
Among the sectors tracked by NSE, consumer durables rose the most, with the gauge logging a weekly gain of 5.1 percent. The IT index was the second best performer, finishing the week 4.7 percent higher.
The Nifty Auto and Oil & Gas indices climbed up 4.6 percent and 3.4 percent respectively, while the Nifty Bank rose 1.5 percent. On the other hand, the FMCG barometer declined one percent.
In the Nifty50 universe, Tata Motors, ONGC, Titan, IndusInd Bank and Mahindra & Mahindra were the biggest gainers. On the flipside, Cipla, Grasim, Shree Cement and Nestle were the worst hit among the 19 laggards.
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|Kotak Mahindra Bank||-2.9|
In the Nifty Midcap 100 and Smallcap 100 packs, IRCTC, Deepak Nitrite, Aarti Industries, Chambal Fertilisers and DCM Shriram -- up 17-29 percent for the week -- were the biggest gainers. Oil India, GMR Infra, Cummins, Bajaj Electricals and JB Chemicals -- down 4-6 percent -- were the top losers.
A total of 345 scrips on BSE 500 -- the broadest gauge on the bourse -- rose for the week.
The road ahead
Dalal Street is yet to react to the quarterly performance of TCS, which kicked off the earnings season after market hours on Friday.
Analysts will keenly track more financial results from India Inc in the coming week. Infosys and Wipro are scheduled to report their Q2 numbers on Wednesday, and HCL Tech the next day, followed by HDFC Bank and DMart over the weekend.
Consumer inflation data will also be monitored closely.