Hopes of robust monsoon and positive key macroeconomic data supported market sentiments this truncated week, as domestic benchmark indices – BSE Sensex and NSE Nifty – surged nearly 4%. Equity markets were closed on Thursday and Friday on account of the Ambedkar Jayanti and Ram Navami, respectively.
The 30-share Sensex recaptured the 25,000 mark by advancing 952.91 points, or 3.86%, to 25,626.75 on Wednesday from 24,673.84 on April 8. The 50-share Nifty reclaimed 7,800 mark as the index gained 295.25 points, or 3.91%, to settle the week at 7850.45.
All the 30 components in the Sensex ended the week in green, with Tata Motors surging the most — 9.77%. It was followed by Maruti Suzuki (up 8.92%), BHEL (up 8.9%), ICICI Bank (up 8.85%) and Mahindra & Mahindra (up 8.07%). The market capitalisation of Sensex companies climbed by over Rs 1.62 lakh crore to Rs 43.44 lakh crore on Wednesday from Rs 41.81 lakh crore on April 8.
The best performing sectoral indices for the week were BSE Auto (rallied over 7%), Bank Nifty (surged 4.6%) and BSE Power (up 4%).
The IMD’s forecast of above-average rainfall this monsoon season led to a surge in the stock of tractor manufacturing major, Mahindra & Mahindra.
Auto companies such as Tata Motors, Maruti Suzuki, Bajaj Auto and Hero Motocorp were up 10%, 8.7%, 8% and 7.9%, respectively. Tata Motors has been seeing a surge in its sales for medium & heavy as well as light commercial vehicles. Maruti Suzuki grew on its launches since March. Bajaj Auto’s sales grew 22%, according to an auto round-up report by LKP research.
State-owned power equipment maker BHEL was the key stock to lead the 4% climb in the BSE Power index. The stock moved up 8.9% during the week post the provisional announcement of its Q4FY16 results last week. Despite the Rs 833-crore loss reported by the company, the scrip climbed up on reports of a 41.9% increase in the company’s order inflows.
The Bank Nifty surged 4.6% as key stocks like ICICI Bank and Bank of Baroda climbed 8.7% and 6.5%, respectively. Lowered CPI inflation brought cheer amongst key banking stocks.
Most of the irrigation systems and agriculture-related stocks such as Insecticides India, Tata Chemicals, and EPC Industries rallied between 1% and 7.5%.
Jewellery stocks such as Gitanjali Gems and Shree Ganesh Jewellery surged 5% and 7.9% on Wednesday after jewellers in Maharashtra temporarily called off their 40-day-long strike.