Indian equity indices reached new all-time highs after a volatile week, extending their winning streak for a third consecutive week. The Nifty and Bank Nifty indices saw significant gains, closing at 22,419.55 and 48,636.45 respectively. The market capitalisation of BSE-listed companies also hit a record high of ₹394.06 lakh crore.
The week started with a drop in Nifty prices to 21,860.65, the lowest level since February 15. However, bargain hunting emerged, driven by positive factors such as India’s GDP growth for the third quarter of the fiscal year exceeding expectations at 8.4 per cent.
Despite initial weakness in banking stocks, they performed well due to an improved economic outlook. However, weakness persisted in the IT and pharma sectors, which are more closely tied to the global economy.
Market analysts noted that the positive sentiment was supported by an improving global market and a respite in US PCE inflation reading. The Nifty 50 and Sensex ended higher in a special trading session, with both indices reaching new closing highs.
Looking ahead, a busy week awaits the primary market with several new IPOs and listings scheduled. Analysts advise investors to continue with a “buy on dips” strategy and focus on stock selection.
Foreign institutional investors were net buyers in Indian markets, with domestic institutional investors also showing positive activity. Despite concerns like delay in rate cuts and Middle East conflict, the sentiment remains positive.
Global markets have been upbeat, with key economic data and events expected to impact market dynamics. Oil prices rose as traders awaited OPEC+ supply agreements decision for the second quarter.
In the coming week, market participants will react to domestic macroeconomic data, new IPOs and listings, FII activity, global cues, oil prices, corporate actions, and technical views. Analysts suggest maintaining a cautious approach and monitoring key levels for potential market movements.
