Mumbai, Aug 1 (IANS) The Indian equity benchmarks posted strong weekly gains as crude prices eased, alleviating global inflationary concerns.
Nifty jumped 2.59 per cent during the week and edged up 0.27 per cent on the last trading day to reach 24,383. At close, Sensex was up 166 points, or 0.21 per cent, at 78,094. It added 2.68 per cent during the week.
The market recovery was broad-based, with large-cap stocks outperforming the broader market.
On a sectoral basis, metals, and automobiles led the rally, supported by an improving global outlook and easing energy costs. Domestic tech stocks faced late-week pressure from a rebound in global chipmakers, before ending the week with strong gains supported by attractive valuations.
Easing inflationary concerns due to correction in crude prices improved market sentiment, an analyst said.
“While the US Fed’s decision to keep interest rates unchanged was largely in line with expectations, its commentary retained a hawkish bias, signalling restrictive policy settings if inflation fails to move sustainably toward its target,” he added.
Meanwhile, the Indian rupee strengthened after unwinding of the crowded global AI trade during the week strengthened the case for foreign inflows into India’s diversified equity market.
Domestically, strong IIP data, improving monsoon conditions, and encouraging corporate earnings supported market sentiment.
The market recovery can only be sustained if global uncertainties continue to ease lending stability to crude oil prices. Broadening of earnings growth beyond a handful of sectors will also influence market recovery, market participants said.
Broad market indices performed in line with benchmark indices, as Nifty Midcap100 added 2.10 per cent, while Nifty Smallcap100 jumped 2.46 per cent during the week.
The RBI’s policy decision and PMI releases will provide key cues on growth and inflation trends. Investors will also remain keen on US labour market data in the coming week.
—IANS
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