The bull run continued for the Indian stock market this week, surging 1.7 per cent and marking the third straight weekly gain. This has made Sensex touch the 85,000 mark for the first time while Nifty trades at an all-time high.
There was sector rotation in the benchmark indices. Inflows are more into large-cap stocks than into mid and small caps, which have been the market favorites until recently.
While earlier, sectors like public sector banks, defence and railways had led the pack, laggards like pharma, private banks, and mid-size IT are slowly taking over this lead. The sectors come with a very appealing kind of valuation, according to Krishna Appala from Capitalmind Research, which is likely to lead the market phase for coming quarters.
Metals stole the show, with CNX Metals jumping nearly 6 percent, making it the best-performing sector and was followed by CNX Auto, which had a gain of 3.5 percent.
Not a great week for Bank Nifty after initial momentum: Analysts felt that the momentum was not sustained and thus the index ended almost flat from where it was when the week began.
The Indian equity indices closed in the red on Friday as profit booking was seen at a higher level. At close, the Sensex was down 264 points or 0.31 per cent at 85,571 and the Nifty was down 37 points or 0.14 per cent at 26,178. Nifty Bank fell 541 points or one per cent to 53,834.
The rupee declined by 0.04 percent to 83.70. The dollar remained unchanged at 100.25. News about US economic jobless claims data showing marginal improvement also presents some additional strength in the US economy. According to experts, the rupee gets support at the range of 83.80-83.90, while resistance stands at the range of 83.50-83.60.
A host of other factors like gold prices holding weak to almost flat, trading near $2665 in Comex and dropping by $8 on the day, or at the MCX, with profit booking around Rs 76,100 and a drop of Rs 150, made a pull back after a strong rally in gold prices earlier this week, where prices have been up by Rs 1,300, mainly driven by the liquidity easing from the Fed's policy decision.
The market has given good buoyancy with the rate cuts made by Fed along with stable economic points as inflows pick up. This momentum created a big wave in domestic markets.
China's announcement of the pace of its economic stimulus has supported investor confidence and gotten some kind of notable positive momentum in global markets, especially within Asian indices.
As indicated by Hrishikesh Yedve from Asit C. Mehta Investment Interrmediates, the index was able to close above the breakout of the rising channel pattern, showing strength on a weekly scale.
