On Friday, India’s benchmark stock indices ended on a rangebound after the higher opening. Realty, media and consumer durables were the top-performing sectors and all the sectors advanced. The S&P BSE Sensex ended 283 points up, or 0.44%, at 64,363.78, and NSE Nifty 50 closed 97 points higher, or 0.51%, at 19,230.60. Intraday, NSE Nifty 50 and S&P BSE Sensex reached their highest levels in over a week since 25th October. Talking about Sensex weekly wrap, indices mitigated 2 weeks of losses. After seeing positive start, frontline indices saw some decline in the middle. However, strong recovery in the US markets and easing crude oil prices supported the Indian indexes.
All the sectoral indices gained on a week-on-week basis, apart from Nifty Auto. Nifty Realty has been categorised as an outperformer. Strong earnings numbers and anticipations that interest rate will be stabilised and decline in 2H of CY24 resulted in market recovery. Investors should know that “buy on dips” strategy has worked well in this market in the past and this should work again in this market scenario. High-quality blue-chip companies operating in the financial industry, automobile industry and capital goods industry are expected to perform well. And mid-caps continue to perform well.
In the week ended Friday (3 November 2023), Sensex increased from ~63,491.73 on 30 October 2023 to ~64,363.78 on 3rd November 2023, exhibiting a rise of ~1.37%. Asian shares saw a significant rise after US stocks rallied. This rally was supported by the fact that the US Fed might be done with their rate hikes campaign.
While investors continue to study Sensex weekly wrap, it is important for them to know that sharp up-moves can take place even at unexpected times. It seems that this saying is turning out to be true. US Fed’s decision to keep interest rates unchanged helped regain the lost investors’ confidence in the equity market. As the result, Sensex and Nifty ended the week on the positive note.
Around 49 small-cap stocks saw double-digit growth in their share prices – between 10%-40% in the past week, as Sensex ended 2-week losing streak. The gain in the index was supported by the US Fed rate pause, triggering significant correction in the US bond yields. Even though geopolitical risks related to Israel-Hamas war are still there, the impact was somewhat limited on market’s overall growth momentum. Resilience of global markets will be critical in determining sustainability of positive momentum, per analysts.
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