points, led by advances in banks and cyclicals.
The positive momentum was seen in broader markets with the BSE Mid- and Small-cap indices gaining 3.15-3.55% from the previous week. The BSE Power index gained 6.8%, while the CNX Bank Nifty and BSE Capital goods index, rose 5.5% each. BSE Metals rose 5.2% and BSE Realty gained 4.2%, taking the tally to nearly 18% in the last one month.
German banking and financial services firm Deutsche expects the rally in the mid caps to extend further, driven by economic recovery and hopes of a decisive electoral outcome.
Positive cues from global markets further aided the rally in Indian equities as worries over tensions between the East and West over Ukraine lowered. The Nikkei 225 index gained 3.3% and Hang Seng advanced 2.9% this week. Kospi, FTSE Straits Times, Thai index and the Jakarta Composite gained in the 0.5-2.5% range during the week.
Indonesian and Indian markets have been the two of the best performers in Asia, stated CLSA in its latest edition of 'Greed & Fear', adding that “market moves driven to a significant degree by growing optimism on pending elections... This is a reminder that, in the world of investing in emerging markets, sometimes politics can be the only thing that matters at least in the short to medium term. Greed & Fear recommends playing the momentum and staying overweight both markets,” stated the note.