Weekly Market Wrap: SENSEX, NIFTY50 rise 1%, Nifty Smallcap 100 outshines; Eternal, Adani Enterprises top performers

The equity benchmark indices extended their winning streak for the third week on Friday, September 19. The NIFTY50 surged 213.05 points, or 0.80%, during the week, while the BSE SENSEX gained 721.53 points, or 0.90%.

The market investors across the globe were eyeing the US Federal Reserve policy announcement this week. The Fed reduced interest rates by 25 basis points (bps) on September 17 for the first time since December 2022 and indicated that more cuts would follow as the US economy continues to grapple with weak labour market conditions. The US central bank cut the interest rate to the 4-4.25% range.

Indian equity markets, along with their Asian peers, gave a thumbs up to the US Fed's rate cut. A cut in the US Fed funds rate will make emerging markets such as India attractive for global investors, as they will likely move funds from the US treasury bonds to emerging markets, which are currently trading at attractive valuations, analysts said.

On the flip side, Titan Company (-2.9%), Asian Paints (-2.5%), Hindalco Industries (-1.9%), Nestle India (-1.9%), and ICICI Bank (-1.1%) ended as the week’s biggest losers.

On the sectoral front, Nifty PSU Bank (4.8%) led the gains, followed by Nifty Realty (4.4%), Nifty Oil and Gas (2.2%), Nifty Pharma (1.5%) and Nifty Auto (1.3%).

UCO Bank (7.1%), Bank of Baroda (6.1%), and Canara Bank (6.1%) led the Nifty IT index gains during the week.

Nifty FMCG led the declines, slipping 0.5%, dragged by Emami (-3.7%), Britannia Industries (-2.8%) and Marico (-2%). Nifty Consumer Durables (-0.2%) and Nifty Media (-0.1%) also ended in the red.

During the week, the Nifty Midcap 100 and Nifty Smallcap 100 outperformed the main equity benchmark indices, rallying 1.5% and 3%, respectively.

On the Nifty Smallcap 100, Redington (23%), Anant Raj (20.1%), Poonawalla Fincorp (13.8%), Aegis Logistics (12.7%), and IFCI (12%) led the gainers.

In contrast, Indiamart Intermesh (-5%), Devyani International (-4.6%) and HBL Engineering (-4%) were the main losers on the index.

On the Nifty Midcap 100, Vodafone Idea (9.7%), IREDA (9.2%), Cochin Shipyard (8.9%), Adani Total Gas (7.6%) and Rail Vikas Nigam (7.5%) were the main contributors.

On the flip side, One97 Communications (-3.4%), National Aluminium Company (3.1%) and Waaree Energies (-3%) were the top losers.