Markets bounce back strongly after 2-week dip
What's the story
The Indian stock market witnessed a major rebound this week, with both the BSE Sensex and Nifty 50 witnessing significant gains. The Sensex jumped 2,034.87 points (2.67%) to close at 78,094.64, while the Nifty surged by 616.15 points (2.59%) to settle at 24,383.60 for the week ending Friday. The rally was supported by better-than-expected June-quarter earnings and a sharp correction in crude oil prices, among other factors like improved monsoon progress and stronger-than-expected IIP data.
Market performance
Midcap and smallcap indices also gain
The broader markets mirrored the benchmark indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices rising over 2% each.
The rally was led by stocks such as Coforge, Laurus Labs, Swiggy, Container Corporation of India, and Ashok Leyland, which rose over 10% during the week.
However, some stocks like Suzlon Energy and Phoenix Mills were among the top losers during this period.
Market trends
IT leads sectoral gainers
Sectorally, the Nifty IT index was the top performer with a 6.75% rally, recording bets weekly gains since December 2023.
It was followed by Nifty Media (5.97%), Nifty Auto (5.61%), Nifty Pharma (3.86%), and others.
Meanwhile, Foreign Institutional Investors (FIIs) ended their two-week selling streak by buying equities worth ₹5,949.96 crore during this period, while Domestic Institutional Investors (DIIs) invested ₹5,387.66 crore in equities to support the market at a slower pace.
Market forecast
Market capitalization increases by over ₹10 lakh crore
The total market capitalization of BSE-listed companies increased by over ₹10 lakh crore during the week.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, expects Indian equities to trade with a positive bias as healthy domestic macros and a strong Q1FY27 earnings season continue to support investor confidence.