The BSE Sensex and NSE Nifty gained 1 per cent this week on account of firm global markets coupled with rupee appreciation and buying by foreign institutional investors (FIIs). For the week ended March 18, the 30-share Sensex climbed 234.75 points to 24717.99, while the 50-share Nifty index gained 94.15 points to 7,604.35.

In the Nifty 50 pack, Ambuja Cements gained the most — 11.11 per cent during the week, followed by Bharat Heavy Electricals Ltd (9.26 per cent), ACC (8.99 per cent), Tech Mahindra (7.74 per cent) and ICICI Bank (7.51 per cent). On the flip side, Lupin, Coal India, Sun Pharma and HDFC shares skid 16.03 per cent, 6.76 per cent, 5.96 per cent and 2.61 per cent, respectively, and remained among top losers in the Nifty 50 pack.

In a scrip-specific development, Lupin got a USFDA warning for its manufacturing facility at Goa spoiling the entire party for the pharma sector. The BSE Healthcare and BSE Power index plunged 4.52 per cent and 0.62 per cent, respectively. The BSE Bankex, BSE Oil & Gas and BSE IT index gained 3.50 per cent, 3.24 per cent and 3.22 per cent, respectively. All other sectoral indices also ended in green.

Rohit Gadia, founder and chief executive officer, CapitalVia Global Research, said, “The positive sentiments in the markets was triggered by stronger currencies relative to the US dollar on the back of the US Federal Reserve slashing its projections for rate increases to two in 2016 from an earlier projection of four after keeping rates unchanged at the conclusion of a two-day monetary policy review on Wednesday, 16 March 2016.”

Foreign institutional investors were net buyers as they bought shares worth Rs 3,306.33 crore in the past five trading sessions. Rupee appreciated 0.71 per cent to 66.61 on March 18 from 67.08 on March 11, according to Reserve Bank of India data. Oil prices steadied around its 2016 high on Friday, supported by expectations of a production freeze by major exporters and dollar weakness that have pushed prices towards a fourth straight weekly gain.

Asian peers, Hang Seng and Shanghai surged 2.34 per cent and 5.15 per cent, respectively, during the week. On the other hand, Nikkei closed the week lower by 1.26 per cent.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “Global central banks’ policy action has favoured the domestic market. The continuous inflow of foreign funds and pick up in the Chinese market has created a positive sentiment in the market.”

Next week, domestic equity markets will remain closed on Thursday (Mar 24) and Friday (Mar 25) on account of Holi and Good Friday.