Benchmark equity indices ended marginally higher for the second consecutive session on Thursday, after profit-booking erased some of the gains made earlier in the session on account of crude oil prices retreating to pre-war levels.
The Sensex rose 109.25 points, or 0.14%, to close at 77,100.47 after soaring more than 1% to an intra-day high of 77,803.18. The Nifty gained 34.35 points, or 0.14%, to settle at 24,056 after hitting a high of 24,261.60 during the day.
With Thursday’s gains, both Sensex and Nifty ended the holiday-shortened week higher by 0.39% and 0.18%, respectively, extending their winning streak to a third consecutive week — the longest in seven months.
In contrast, broader markets underperformed, with the BSE MidCap and the BSE SmallCap indices declining 0.70% and 0.24%, respectively, during the week. Markets will remain closed on Friday on account of a holiday.
“Indian equity markets navigated a week of mixed signals with notable resilience, ending the truncated four-day week marginally higher, even as broader indices, especially mid-caps, faced modest selling pressure,” said Vinod Nair, head of research at Geojit Investments.
“The sharp correction in crude oil prices to pre-war levels, supported by improved traffic through the Strait of Hormuz, easing geopolitical risks amid progressing US-Iran talks, and optimism surrounding an India-US trade deal helped boost domestic investor sentiment,” Nair added.
Monsoon Worries
However, concerns over uneven monsoon distribution have begun to raise expectations of inflationary pressures and a potential slowdown in rural demand, he said.
The sectoral trend remained mixed during the week. Pharma, healthcare, realty, private banks, and auto emerged as the top gainers, while metals, consumer durables, PSU banks, IT, and FMCG stocks ended lower.
Among Sensex constituents, InterGlobe Aviation (IndiGo), Mahindra & Mahindra, ICICI Bank, Maruti Suzuki, and Kotak Mahindra Bank were the top performers during the week. On the other hand, Tata Steel, BEL, NTPC, Eternal, and Asian Paints were the top laggards.
Investor wealth declined by Rs 2.37 lakh crore during the week, with the total market capitalisation of BSE-listed companies falling to `475.16 lakh crore.
Foreign portfolio investors (FPIs) purchased shares worth Rs 2,305.31 crore during the week, while domestic institutional investors (DIIs) bought shares worth Rs 11,100.94 crore, according to data from NSDL and the BSE.
Rupee posts modest gain
The rupee closed modestly stronger on Thursday and for the week as falling oil prices improved sentiment alongside signs of a pickup in foreign portfolio inflows, while caution lingered over the prospect of US rate hikes. The rupee rose about 0.3% on the day to close Thursday’s session at 94.39 and was nearly flat on the week.