In a week marked by remarkable performance, the Indian market continued to hit record highs, with Nifty inching closer to the 20,000 mark and Sensex surpassing the 67,000 level for the first time. The market found support in the better progress of the monsoon, positive Indian industry results, and continuous foreign investments despite mixed signals. However, the IT sector witnessed weakness after Infosys provided a weak guidance for the rest of the financial year, leading to some selling on Friday.
Nifty Approaches 20,000, Sensex Surpasses 67,000
During the week, both the Sensex and Nifty reached new milestones, touching record highs of 67,619.17 and 19,991.85, respectively. The BSE large-cap and mid-cap indices also saw gains, advancing by 0.5% each, while the small-cap index surged by 1.3%. Various sectors showed significant growth, with the Nifty PSU Bank Index closing 4% higher, Nifty Media Index up 3%, Nifty Bank Index rising 2.8%, and Nifty Pharma and Energy Indexes gaining 2%. However, the Nifty IT Index faced a decline of 3.5%.
Mixed Signals Impact IT Sector as Nifty IT Index Declines by 3.5% in Remarkable Week
Within the BSE Small-Cap index, several stocks showed notable gains, including DCM Shriram Industries, Sterling and Wilson Renewable Energy, Arihant Capital Markets, DB Corp, Mishton Foods, Jai Balaji Industries, Ashapura Minechem, Newgen Software Technologies, Jagran Prakashan, Cerebra Integrated Technologies, Dodla Dairy, LT Foods, Electronics Mart India, Texmaco Infrastructure & Holdings, Heritage Foods, and Jindal Saw.
On the other hand, Transformers & Rectifiers India, Krishna Diagnostics, Datamatics Global Services, CCL Products India, Himatsingka Seed, and Roto Pumps experienced declines ranging from 11% to 25%.
BSE Small-Cap Index Sees Notable Stocks Surge, While Some Witness Declines
Foreign institutional investors (FIIs) continued to show confidence in the Indian market, buying equities worth Rs 3,115.26 crore during the week. However, domestic institutional investors (DIIs) sold equities worth Rs 776.69 crore. In the month so far, FIIs have purchased Indian equities worth Rs 17,697.89 crore, while DIIs have sold equities worth Rs 8,906.19 crore.
Market analysts, like Jatin Gedia of Sharekhan, predict that Nifty’s support lies between 19,680 and 19,700, and the market may experience some consolidation after the recent surge. Despite this, the overall uptrend remains intact, and any decline is seen as a pullback rather than a trend reversal. Notable levels to watch are 19,677-19,700 as Nifty’s support, while immediate resistance is seen at 19,880-19,900.
