For the Indian equity benchmark indices, the curtailed trading week was witness to solid gains as both Sensex and Nifty gained ground in each of the trading sessions during the week and ended at record highs.
The 30-share S&P BSE Sensex breached the psychological 61,000-mark for the first time ever on Thursday to end the week at 61,305.95. It gained 568.90 points or 0.94 per cent on Thursday though the weekly gain was pegged at 1,246.89 points or a little over two per cent.
The broader 50-share Nifty ended the week at a record high of 18,338.55, after gaining 176.80 points on Thursday. Markets will be closed on Friday on account of Dusshera.
Market participants attributed the rally to a combination of domestic factors as global markets remained largely subdued with leading markets, including the US, Hong Kong, South Korea, and Japan, among others witnessing a negative trend in the last one month.
Yesha Shah, Head of Equity Research, Samco Securities believes that the recent liquidity support by both foreign and domestic institutional investors along with that from the retail investors have boosted sentiments.
September saw the highest FPI inflows since June and there was record flows through systematic investment plans or SIPs as well.
"The rapid surge in benchmark indices was fuelled by this unionised confidence in India markets along with the timely softening of the CPI inflation in accordance with the central bank's predictions," said Shah.
"It also received a push due to an improvement in certain high frequency economic indicators such as electricity consumption, railway freight, e-way bills, to mention a few. While some may refer to this upswing as a liquidity driven rally, others may call it a greed cycle, the fact remains that investors have profited handsomely across stocks, regardless of their fundamentals," he added.
Date released from the Ministry of Commerce & Industry on Thursday showed that India's overall exports (merchandise and services combined) grew 21.44 per cent on a year-on-year basis in September 2021 to $54.06 billion.
Meanwhile, IT stocks were in the limelight during the week as sector heavyweights including Infosys, Wipro and HCL Technologies announced their results. While Wipro gained a little over nine per cent during the week, Infosys was largely flat. The BSE IT index also lost around two per cent in the last five trading sessions.
Zee Entertainment Enterprises continued to be in news as the bitter battle of words between the promoter and Invesco - the company's single largest shareholder - continued. The shares, however, gained nearly 7 per cent in the last five trading sessions.
Going ahead, market participants are expecting the bullish trend to continue on the back of liquidity support combined with a positive support from earnings.
The coming week would see companies like Ultratech Cement, L&T Infotech, Rallis India, Havells India, L&T Finance, Yes Bank and Mahindra Holidays announce their results.
Also Read: Sensex hits 61,000! What to expect ahead?
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