Mumbai: Indian equity benchmarks closed the week on a strong note, hitting fresh all-time highs driven by robust gains in banking and auto sector stocks, reflecting improved investor sentiment and sectoral strength.
Nifty surged 1.05 per cent during the week and 0.70 per cent on the last trading day to 26,328. At close, Sensex was up 760 points or 0.67 per cent at 85,762. It surged 0.89 per cent during the week.
The Bank Nifty also continued its outperformance, scaling fresh record highs above the 60,200 mark.
The Indian equities traded in a cautious tone till the New Year, weighed down by persistent FII outflows and heightened global uncertainties. On New Year, the indices ended on a flat note, and on the last day of the trading week, they touched fresh all-time highs.
Strong momentum was observed in the auto and PSU banking sectors, while sectoral rotation was evident in utilities as they gained traction on hopes of rising demand and increased industrial activity. Robust December auto sales indicate a broader uptick in economic activity during the festive-driven quarter.
Improving asset quality and expectations of accelerated credit growth drew investor interest toward PSU banking stocks, analysts said.
Conversely, the FMCG index dipped 4 per cent for the week after the government announced a higher excise duty on cigarettes.
Broader indices outperformed benchmark indices for the week, with the Nifty Midcap100 up 1.74 per cent, while Nifty Smallcap100 edged up 0.77 per cent.
Precious metals continued their momentum, as trade disparities, supply constraints, geopolitical tensions, rate cut views, and FII outflows continue to test the near-term risk appetite of investors.
According to analysts, a sustained hold by Nifty above 26,300 could accelerate the rally toward 26,500, with an extended upside potential toward 26,700 on strong follow-through. Bank Nifty is likely to continue outperforming the Nifty index in the near term, they added.
Key cues for investors going forward include US payroll and unemployment data for global market direction. Markets may move within a steady range as participants wait for clearer earnings‑led triggers and clarity on the India-US trade deal, market watchers said.
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Infographics: Pinaki Paul
—IANS
