Market Recap: Strong Gains, Political Enthusiasm, and New Listings Euphoria
The recent week in the stock market was marked by strong gains, with markets performing positively on three out of four trading sessions. Notably, Wednesday saw sharp gains, followed by a robust opening for the December series on Friday. The anticipation of election results in five states, as indicated by exit polls, suggested a closely contested race, with potential overall gains for the ruling party at the center. This, coupled with a strong rally in the Dow, contributed to the positive market sentiment.
By the week's end, the BSE SENSEX gained 2.29%, closing at 67,481.19 points, while the NIFTY rose by 2.39%, closing at 20,267.90 points. Broader market indices, including BSE100, BSE200, and BSE500, also recorded gains of 2.51%, 2.68%, and 2.64%, respectively. BSEMIDCAP and BSESMALLCAP posted gains of 2.90% and 1.91%, respectively, with the rally spanning across sectors, leaving no room for sectoral losers.
In the currency market, the rupee appreciated by 0.10%, closing at Rs 83.29 against the US Dollar. The Dow experienced a notable week, reaching a 52-week high with a gain of 2.42%, closing at 36,245.50 points.
The expiration of November futures saw a positive conclusion, with a series gain of 6.77% at 20,133.15 points. The new series began with NIFTY gaining a further 134 points.
The week was marked by five main board listings in three days, featuring impressive participation and strong performances. IREDA, Tata Technologies Limited, Gandhar Oil Refinery (India) Limited, Fedbank Financial Services Limited, and Flair Writing Industries Limited all made their debut. Notably, retail investors demonstrated increased influence, but concerns arose over the lower circuit triggered in Flair Writing Industries Limited within five minutes of trading post-price discovery.
Looking ahead, the positive economic indicators, including GST collections for November at 1.68 lakh crore (15% YoY growth) and GDP numbers beating RBI's estimate at 7.6% for the July-September quarter, contribute to the optimistic market sentiment. As the results of the state elections unfold, the momentum is expected to continue in the week ahead, with NIFTY and BSE SENSEX hitting new lifetime highs. Caution is advised, and the strategy is to ride the rally while being mindful of potential support levels at 19,800-19,850 on NIFTY and 66,150-66,300 on BSE SENSEX.
(With Agency Inputs)
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