Weekly wrap 29 April to 3 May: NIFTY, SENSEX give up weekly gains; end flat amid volatility

• SENSEX closed the week at 73,878.15, up by 148 points
• NIFTY edged up nearly 56 points, or 0.002%, on a weekly basis to close at 22,475.85
• ICICI Bank surpassed ₹8 lakh crore market capitalisation on April 29
• Bajaj Finance shares jumped nearly 7.5% on Friday, marking the biggest single-day gain since April 2021

Hey there! We are back with a quick recap of the markets, marked by volatility.

Stock markets closed almost flat this week after a choppy trade. The holiday-truncated week witnessed bouts of buying and selling amid mixed cues from global markets. The US Federal Reserve kept the key policy rates on hold on expected lines. However, confusion over rate cuts for the rest of the year made investors jittery. US Treasury yields at 4.5% and higher levels triggered selling by FIIs.

The easing geopolitical worries about conflict in the Middle East, which also cooled down crude oil prices, brought some respite to domestic investors.

Stock markets were open for four days this week due to a trading holiday on May 1 for Maharashtra Day. Stock markets closed the week marginally up at 0.02% as gains in two sessions were squared off by losses in the other two sessions.

SENSEX closed the week at 73,878.15, up by 148 points, while broader NIFTY edged up nearly 56 points, or 0.002%, on a weekly basis to close at 22,475.85.

Key stock indices SENSEX and NIFTY licked off the week with gains. SENSEX and NIFTY closed higher by sharp gains of 1% on Monday aided by easing crude oil prices and US bond yields. Upbeat US tech earnings also boosted the sentiment. Banks, financial services and utilities were the key gainers while realty IT and auto shares took a beating.

On Tuesday, bears gripped the markets. Heavy selling in banking and IT shares pulled down NIFTY from record intra-day high of 22,783.35 to close in the red. NIFTY settled lower by 0.17% at 22,604.85 on Tuesday.

Buy-on-dips strategy by domestic investors helped SENSEX and NIFTY recover from Tuesday’s losses as markets opened for trading after a holiday on Thursday. SENSEX rebounded 0.17% while NIFTY closed higher by 0.19% at 22,648.2. Utilities, services and consumer discretionary shares gained amid FII buying and positive macro data.

Record GST collections data for April and manufacturing PMI remaining in the expansion zone also boosted sentiment.

SENSEX and NIFTY however squandered gains on the last trading session on Friday due to profit booking in index heavyweights. Caution ahead of the US non-farm payroll resulted in selling pressure in the market.

NIFTY dropped by 0.76% to close in the red at 22,475.85 points. L&T, Reliance, Maruti and Bharti Airtel were key losers. Major sectors such as auto, IT and realty were among the primary losers.

ICICI Bank shares advance over 2% on strong Q4 numbers

ICICI Bank shares advanced around 2.6% this week as the bank reported strong quarterly numbers for the March quarter. The stock saw some volatility on Thursday as market reports claimed that its CEO and MD Sandeep Bakhshi was willing to step down but RBI wanted his continuity. The report was termed as baseless and speculative by ICICI Bank.

India’s second largest private bank also became the 2nd bank to cross ₹8 lakh crore in market capitalisation on April 29. It has now become the fourth largest company in India in terms of market capitalisation.

Bajaj Finance shares rise the most in 3 years after RBI lifts curbs

Bajaj Finance shares jumped around 7.5% on Friday - the biggest single-day gain since April 2021.

The gains were triggered by the Reserve Bank of India lifting restrictions imposed on Bajaj Finance's eCOM and Online digital insta EMI card businesses.

What lies ahead?

Stock markets declined due to profit taking on Friday. However market sentiment is expected to improve as US bond yields are cooling off. An ease in Middle East tensions, coupled with stable earnings by corporates are expected to boost market sentiment.