Weekly wrap 22 to 26 April: NIFTY, SENSEX rise up to 1% in a week marked by geopolitical concerns

• Market valuation of BSE-listed companies jumped to a lifetime peak of ₹404.18 lakh crore on Thursday.
• Overall net buying by DIIs stood at over ₹42,000 crore in April so far.
• NIFTY, SENSEX closed higher in 4 out of 5 sessions this week despite weak global trends.

It’s that time of the week again! We are back with a recap of Indian stock markets that showed resilience amid weak global trends.

Indian stock markets shrugged off geopolitical worries and waning hopes of rate cuts this week. Buy-on-dip strategy and support from domestic institutional investors helped stock markets gain for four days in a row. Profit-taking was also seen at high levels amid monthly expiry in the futures and options segment.

Despite bouts of buying and selling and losses on Friday, key indices rose up to 1%.

Extending the gaining momentum of last Friday, SENSEX and NIFTY started the week on a high note. Both SENSEX and NIFTY rose by 1% to close at one-week high levels on Monday. Index major stocks such Reliance Industries, ICICI Bank, L&T and Axis Bank advanced as Middle East worries saw some respite. NIFTY closed above the 22,300 level after sharp losses in the previous week.

Stock markets managed to close in the green on Tuesday, extending the gaining streak to the third day. Telecom, tech and consumer durable shares gained amid firm global markets. Despite profit taking in major gainers as NIFTY crossed 22,400 level and SENSEX breached 74,000 level in the day, key indices closed higher. Realty, FMCG and auto were among the top gainers.

SENSEX and NIFTY moved in a narrow range on Wednesday before closing marginally higher. A mixed trend on the sectoral front kept the traders occupied. Metal, realty and pharma shares rose while IT and auto shares fell. Q4 earnings remained largely subdued. The results of the IT pack and a few index heavyweights were also disappointing. NIFTY settled at 22,402.40 while SENSEX closed at 73,852.94 on Wednesday.

Stock markets continued their winning run on Thursday despite monthly expiry in the derivatives segment. SENSEX surged nearly 1% to the day’s high of 74,571.25 before closing at 74,339.44 due to some profit taking at fag-end. NIFTY raced 0.75% to close at 22,570.35 despite some profit taking.

Stock markets were buoyed by strong manufacturing and service sectors this week. Indian composite PMI touched a multi-year high, boosting the broader market. Small cap and midcap shares also gained as investor sentiment improved with easing tensions in the Middle East and declining oil prices.

Stock markets declined more than 0.5% on Friday due to weak global trends. After a firm start, NIFTY squandered the gains on selling pressure after a five-day rally. NIFTY closed at day’s low of 22,419.95. SENSEX also settled 0.82% lower at 73,730.16.

Stock markets ended the five-day rally on Friday due to an unexpected surge of the US core PCE price index. Weaker-than-forecast GDP growth and a rise in Treasury yield impacted market sentiment.

Domestic institutional investors (DIIs) fuel market rally

Domestic institutional investors were behind the stocks’ rally this week. DIIs purchased shares worth ₹ 14,475.58 crore until Friday this week, taking the overall net buying to over ₹42,000 crore in April so far. Increased buying by DIIs has cushioned stock markets from the impact of selling by FIIs this month.

Foreign institutional investors (FIIs) sold shares worth ₹ 36,933.21 crore until Friday this month.

BSE-listed companies mcap hit lifetime high

The market valuation of BSE-listed companies jumped to a lifetime peak of ₹404.18 lakh crore on Thursday after a five-day rally. Investors’ wealth ballooned by ₹11.29 lakh crore. The rising bond yields in the US and geopolitical tensions have not impacted the stock markets.

The week ahead

With the hopes of a Federal rate cut in near future fading away, the market observers will keep a close watch on the US jobs report due next week. The easing geopolitical tensions could also help the Indian markets to see momentum. The investors will also keep an eye on the Q4 results of some big names like UltraTech Cement, UCO Bank, Adani Energy Solutions, IOCL, Procter and Gamble Hygiene and Health Care.