Weekly Market Wrap: SENSEX, NIFTY50 gain 1% led by M&M, Tata Steel; broader market outshines

The equity benchmark indices snapped a two-week losing streak to end the week with gains on Friday, September 5. Both NIFTY50 and SENSEX ended the week with over 1% gains.

The NIFTY50 surged 314.15 points, or 1.3%, during the week, while the BSE SENSEX gained 901.11 points, or 1.11%.

The market majorly reacted to the government’s new Goods and Services Tax (GST) reforms this week.

The GST tax rates on common use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax regime.

The GST Council approved an overhaul of rates by limiting slabs to 5% and 18%, effective from September 22, the first day of Navaratri.

On the Nifty50 index, Mahindra & Mahindra emerged as the top gainer of the week, surging 11.3%. Tata Steel (8.5%), Eicher Motors (7.8%), Bajaj Finance (6.8%), and Hindalco Industries (5.7%) also added strong momentum to the index.

On the flip side, HCL Technologies (-2.5%), Wipro (-2.3%), Cipla (-2.3%), Infosys (-1.7%), and HDFC Life Insurance (-1.6%) ended as the week’s biggest losers.

On the sectoral front, Nifty Metal (5.8%) led the gains, followed by Nifty Auto (5.4%) and Nifty Consumer Durables (3.2%). Nifty IT, dragged by HCL Tech, Wipro, and Infosys, was the top laggard, slipping 1.6%.

Meanwhile, auto and consumer durables indices gained on the back of revised GST rates.

What are the new GST rates on automobile vehicles?

The Nifty Midcap 100 and Nifty Smallcap 100 outperformed the main equity indices this week, rallying 2.4% and 2.5%, respectively.

On the Nifty Midcap 100, Nalco (13.9%), Vodafone Idea (11.4%), Aditya Birla Fashion (11.1%), Ola Electric (10.9%), and BSE Ltd (10.7%) topped the gainers’ list. In contrast, Waaree Energies (-5.4%), Coforge (-3.8%), UPL (-3.8%), AU Small Finance Bank (-3.3%), and Prestige Estates (-3.3%) were the biggest losers.

On the Nifty Smallcap 100, Bata India (13.1%), Kaynes Technology (11.7%), Brainbees Solutions (10.7%), Piramal Pharma (9.4%), and Manappuram Finance (8.8%) led the gainers.