The broader indices outshone the main indices and hit fresh all-time highs during the week ending June 14. The Indian markets, although rangebound, ended higher for the second straight week, achieving the largest two-week gains since December 2023.
This week, the BSE Sensex increased by 299.41 points, or 0.39 percent, to close at 76,992.77, while the Nifty50 index rose by 175.45 points, or 0.75 percent, finishing at 23,465.60.
In the broader market, the BSE Small-cap index surged by 5 percent, the Mid-cap index climbed 4.4 percent, and the Large-cap index advanced by 1 percent.
During the week, both the BSE Sensex and Nifty50 reached new record highs of 77,145.46 and 23,490.40, respectively.
Sector-wise, the BSE Capital Goods index increased by 6.4 percent, the BSE Realty index rose by 5.4 percent, the BSE Telecom index gained nearly 4 percent, and the BSE Oil & Gas index climbed 3.5 percent. However, the BSE Information Technology and FMCG indices each declined by 1 percent.
Throughout the week, Foreign Institutional Investors (FIIs) purchased equities worth Rs 2,030.83 crore, while Domestic Institutional Investors (DIIs) bought equities worth Rs 6,293.38 crore.
Vinod Nair, Head of Research at Geojit Financial Services, stated, “The domestic market remained marginally positive this week, despite a temporary dip in momentum due to a lack of fresh triggers. However, mid and small-cap sectors outperformed as sentiment improved for growth-based stocks. The outcome of the FOMC meeting was hawkish, shifting market expectations from two rate cuts in CY24 to just one. Yet, stable US inflation offered some relief.”
“Domestic CPI data suggests a gradual decline in inflation. Although the last phase towards the inflation target remains challenging, a normal monsoon raises hopes that the MPC will move closer to an easing cycle.”
“Following strong IT sector returns last week, heavyweights and FMCGs faced selling pressure. Nonetheless, all other sectors performed positively, with real estate notably benefiting from government spending announcements in rural areas. Next week, the focus will be on industrial production data from India, China, and Eurozone inflation to gauge economic outlooks,” he added.
The BSE Small-cap index soared by 5 percent, reaching a new record high of 51,259.06. Companies like PTC Industries, Avantel, Honda India Power Products, Paras Defence and Space Technologies, Hindustan Construction Company, Bannariamman Sugars, Chemplast Sanmar, GTL Infrastructure, Wardwizard Innovations and Mobility, EIH Associated Hotels, Home First Finance Company India, Reliance Power, and Asian Granito India saw gains between 25-34 percent. Conversely, Sanofi India, IRB Infrastructure Developers, Heritage Foods, PNC Infratech, India Pesticides, Waaree Renewable Technologies, Poonawalla Fincorp, Sanmit Infra, TruCap Finance, Divgi Torqtransfer Systems, and Finolex Industries experienced losses between 5-29 percent.
Nifty50 Outlook
Ajit Mishra – SVP, Research, Religare Broking
“The market maintained a consolidation bias on Friday, closing slightly in the green. Indications suggest further consolidation in the Nifty index. Traders should consider initiating fresh positional longs on any dip around the 23,100-23,300 zone. A decisive close above 23,600 could trigger an uptrend towards the 24,000 zone. Meanwhile, a stock-specific trading approach remains effective, and participants should align their positions accordingly.”
Rupak De, Senior Technical Analyst, LKP Securities
“The Nifty remained within the range of 23,300-23,500. The short-term sentiment is likely to stay positive. Support levels are at 23,400/23,300, where put writers have built significant positions. A decisive fall below these levels might shift the market balance towards the bears. Until then, it’s a buy-on-dips market. A decisive move above 23,500 might lead to a sharp upside in the near term.”
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas
“On the daily charts, the Nifty has been consolidating between 23,200 and 23,500. The longer it consolidates at this level, the higher the likelihood of a breakout next week. It has already been five days, and we believe a trending move is imminent. The hourly momentum indicator has triggered a positive crossover from the equilibrium line, suggesting that the consolidation has matured and the next leg of the upmove can resume.”
Disclaimer: The views and investment tips expressed by experts on sarkariaadmi.com are their own and not those of the website or its management. sarkariaadmi.com advises users to consult certified experts before making any investment decisions.
