Bulls overpowered bears in Dalal Street as post-budget rally helped BSE Sensex register its biggest weekly gains in absolute terms since July 2009. The 30-share Sensex gained 1,492.18 points, or 6.44 per cent to 24,646.48 on March 4 from 23,154.30 on February 26. The 50-share Nifty closed the week 455.60 points higher at 7,485.35.
For the week ended March 4, share price of Vedanta surged the most — 21.31 per cent in the Nifty 50 pack. This was followed by State Bank of India (21.30 per cent), ICICI Bank (19.86 per cent), Tata Steel (16.72 per cent) and Hindalco Industries (15.19 per cent). On the other hand, ONGC (down 6.99 per cent), Sun Pharmaceutical (down 1.70 per cent), Mahindra & Mahindra (down 1.06 per cent) and Hindustan Unilever (down 0.11 per cent) remained the only losers in the 50-share index.
Sectorwise, the BSE Bankex (up 11.75 per cent), BSE Realty (up 11.34 per cent) and BSE Metal index (up 10.22 per cent) remained top gainers in the BSE sectoral indices. Rest all other indices also ended in the week in green. According to market experts, metal and mining stocks gained as copper prices rose in global commodity markets and as iron ore prices scaled fresh four-month highs buoyed by firmer steel prices in China. Banking stocks gained on Reserve Bank of India’s easing capital recognition norms for banks amid ropes of a rate cut.
The BSE Midcap and BSE Small index surged 6.81 per cent and 7.65 per cent, respectively, during the week under review.
Jimeet Modi, chief executive officer, SAMCO Securities, said, “Budget not only ignited a ray of hope but was backed with concrete policies to kick start the stalled economic engine of the country. The rupee too appreciated handsomely, a green signal given by global investors that indeed the budget can propel the country into renewed growth trajectory.”
Foreign institutional investors or foreign portfolio investors have also started to invest aggressively in Indian equities after a long time. They bought shares of worth Rs 3544 crore in the past five trading sessions. Indian rupee also surged nearly 2 per cent to 67.27 on March 4 from 68.61 against dollar on February 29.
Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services, said, “Market has gained more than 6 per cent during this week as the fiscal consolidation plan is attracting FIIs to India. Foreign Investors remain positive as the consensus is pointing to a significant upside on US non-farm payroll data and which could provide clues on Fed rate hike direction.”
Domestic equity markets will remain closed on Monday on account of ‘Maha Shivratri’.
For upcoming trading sessions, Jayant Manglik, president, retail distribution, Religare Securities, said, “Though we have reached very close to our target of 7,550 in Nifty, but the momentum indicates that we could surpass that mark and inch further higher. In short, the current pause in index could be a chance for those who are waiting on the sidelines.”