Sensex gains 405 pts, Nifty up 1% in weekly trade; Hindalco, SBI lead
- Sensex rose 405 points and Nifty gained 1% during the week.
- Hindalco and SBI were among the top gainers.
- Broader market indices also fared well, reflecting widespread buying.
Weekly Close: Sensex, Nifty Post Modest Gains
Indian equity benchmarks ended the week on a positive note, with the SENSEX adding 405 points and the NIFTY50 climbing 1%. The gains were driven largely by metal and banking stocks, with Hindalco and SBI emerging as the standout performers.
Trading remained range-bound for most of the week, but a late surge in select heavyweights helped indices close firmly in the green. The NIFTY50 settled above the 24,800 mark, though it stopped short of reclaiming the 25,000 level that traders have been eyeing.
Hindalco, SBI Lead the Charge
Hindalco was the top gainer on the NIFTY50, rising over 4% during the week, buoyed by strong aluminium prices and optimism around global demand. State Bank of India followed closely, adding nearly 3% as banking stocks found favour amid expectations of steady credit growth.
Other notable advancers included Tata Steel, JSW Steel, and Power Grid Corporation, all of which logged gains of 2-3%. On the flip side, IT stocks were the laggards, with Infosys and TCS ending the week in the red as investors booked profits in the sector.
Broader Market Holds Up
The broader market also participated in the rally, with the BSE Midcap and Smallcap indices rising in line with the benchmarks. The midcap index gained 1.2%, while smallcaps added 1.5%, reflecting broad-based buying rather than a narrow rally in large caps.
Market breadth remained positive throughout the week, with advancing stocks outpacing decliners on the BSE. Analysts noted that domestic institutional investors were net buyers, providing a cushion against foreign outflows.
Sectoral Trends and Key Drivers
Among sectoral indices, metal and public sector banks were the clear winners. The Nifty Metal index surged 3.5%, while the Nifty PSU Bank index jumped 2.8%. Auto and FMCG stocks also saw modest gains, supported by expectations of healthy monsoon-driven rural demand.
Meanwhile, the Nifty IT index slipped 1.2%, dragged by concerns over client spending in the US and Europe. The pharma sector was mixed, with some stocks gaining on news of regulatory approvals while others remained flat.
Global cues were largely supportive, with US markets holding near record highs and crude oil prices staying below $75 a barrel. The rupee remained stable against the dollar, trading in a narrow band around 83.5.
What to Watch Next Week
Investors will now turn their attention to upcoming inflation data and corporate earnings from key companies. The release of US CPI figures will be closely monitored for cues on interest rate trajectory.
On the domestic front, any further buying by FIIs and movement in metal prices could dictate the near-term direction. Traders are likely to keep an eye on the 25,000 level for Nifty, a break above which could trigger fresh momentum.