Weekly wrap 18 to 22 March: Markets end on a high as NIFTY, SENSEX gain

• On a weekly basis, SENSEX gained 0.26% while NIFTY advanced 0.34%
• Investors lost more than ₹5 lakh crore in a single day on Tuesday, March 19
• NIFTY IT tanked more than 6% this week
• Paytm shares made a sharp recovery of 16% this week

We are back with a quick recap of the markets in a policy action-packed week. From benchmark indices registering weekly gains to Tata Sons' divestment in TCS, here's what kept investors busy.

Stock markets managed to end in the green this week despite the heavy volatility triggered mostly by global factors. Amid policy actions by major global central banks this week, Indian stocks witnessed a see-saw trade.

The US Federal Reserve is sticking to its three rate cuts forecast for the current year brought relief to wary investors. 

Key stock indices SENSEX and NIFTY50 closed the week on a high aided by the rally in auto, realty and metal stocks. SENSEX closed at 72,831.94, up by 190.75 or 0.26%. After overcoming initial hiccups, broader NIFTY closed above 22,000 level this week at 22,096.75, with gains of 84.8 points, or 0.39%, on Friday.

On a weekly basis, SENSEX gained 188 points, or 0.26%, while NIFTY50 advanced 73.4 points, or 0.34%. 

The key indices faced ups and downs. Stock markets opened the week on a firm note on Monday as investors awaited key policy decisions from the Bank of Japan, Bank of England and keenly watched the US Federal Reserve.  

Markets were little moved on Monday with a positive bias. Metal, auto and energy shares came to the rescue, while IT and FMCG shares dropped.

However, stock markets witnessed a bloodbath on Tuesday as the Bank of Japan raising interest rates after a gap of 17 years turned investors jittery. Key stock indices tanked more than 1% each, with NIFTY breaking support levels and closing below 22,000. Investors lost more than ₹5 lakh crore in a single day on Tuesday, March 19.  

Heavy losses in Tata Consultancy Services (TCS) as its promoter Tata Sons offloaded a minor 0.65% stake for around ₹9,300 crore in block deals also hit the investor sentiment.

After the mayhem, stock markets took a recovery path and rose for three days in a row. SENSEX and NIFTY closed higher on Wednesday before the announcement of the US Federal policy review. 

Stock markets took comfort from the US Federal Bank holding its interest rates and sticking to its three rate cuts plan this year. The policy announcement reined in dollar strength. SENSEX and NIFTY closed more than 0.7% higher on Thursday following gains in realty, auto and metal shares.

Indian stocks inched up on the week's last trading session despite initial losses on further gains in metal and auto shares. However, volumes were thin ahead of the holiday-shortened upcoming week. Stock markets will remain closed on Monday, March 25, for Holi and Friday, March 29, for Good Friday. 

NIFTY IT, however, tanked more than 6% this week amid global growth concerns. The FMCG index was another loser. On the other hand, auto, realty, metal, and oil and gas indices were major gainers this week.

Tata Sons sells minor stake in TCS

Tata Sons on Tuesday sold 2.34 crore shares of Tata Consultancy Services (TCS) in the open market for over ₹9,300 crore. TCS shares, which hit a lifetime high on bourses on Monday, tanked more than 4% on Tuesday amid the large deals. Tata Sons stake has dropped to 71.74% from 72.38% earlier. 

The move also comes amid the requirement of Tata Sons to get listed on stock exchanges by next year. The RBI has named Tata Sons among the upper layer and it needs to comply with its scale-based regulations.

Paytm shares recover after RBI deadline

Shares of One97 Communications, which operates under the brand name Paytm, made a sharp recovery of over 8.5% in the last one week. The recovery comes after it received approval from National Payments Corporation India (NPCI) to continue UPI operations as a third-party application provider under the multi-bank model.

What to look forward next week

With major policy actions behind, stock markets will likely see range-bound trade next week. Stock indices may be volatile as markets will open for only three days due to the Holi and Good Friday holidays. The monthly expiry of derivatives that week may also heighten the volatility. NIFTY is facing a hurdle in the short-term moving average 20DMA, and it needs to cross the 22,100 level to move towards a high level of 22,525.