Breaking the two-day losing streak, the Sensex rallied by 568.38 points (1.17%) to close at 49,008.5 on Friday although the Nifty jumped 182.4 points (1.27%) to close at 14,507.3. The markets have been reacting to sturdy worldwide cues and remained optimistic ahead of the final results season, which would kick-begin in the second week of April. While the markets ended Friday’s session on a sturdy note, they declined for the week, with the Nifty and Sensex falling by 1.6% and 1.7%, respectively.
The markets took cues from worldwide sentiments, which recovered immediately after the US markets gained amid progress in vaccine distribution, boosting optimism about worldwide development prospects. Moreover, stronger-than-anticipated fourth quarter GDP information in the US also boosted the sentiment.
Asian markets in South Korea, China, and Hong Kong rallied by 1.09% to 1.57%. Similarly, European markets also reacted to the threat-on sentiment with bourses in France, the UK and Germany increasing by .36% to .72%.
Siddhartha Khemka, head — retail analysis, Motilal Oswal Financial Services, mentioned: “Global cues were positive as the US markets gained amid progress in vaccines distribution. Further, positive US jobs data and stronger-than-expected Q4 GDP data boosted market sentiments.”
On the domestic front, the markets have been pulled up by metals and banking stocks. The shopping for in metal stocks was triggered by increasing rates. The largest gainers in Nifty have been Tata Steel, Bajaj Finserv, Asian Paints, Hindalco and Tata Motors, up by 5.82%, 4.4%, 3.99%, 3.96%, and 3.92%. On the other hand, the largest losers have been UPL, Powergrid Corporation, Eicher Motors, ITC, and IndusInd Bank, down by 1.39%, 1.25%, .72%, .33%, and .23%.
The markets, having said that, ended the week declining by 1.7% due to the threat-off sentiment globally amid increasing Covid-19 circumstances, with Europe witnessing its third wave. India, also, is witnessing a rise in Covid-19 circumstances which dampened the investor sentiment with some states going into partial lockdowns. This, according to specialists, could effect the estimates they had for the financial recovery.
Rusmik Oza, head – basic analysis, Kotak Securities, mentioned: “The Nifty-50 Index lost 1.6% this week due to turmoil in global equity markets and the sharp rise in Covid-19 cases in India. This week’s monthly expiry was weak and the fiscal-end phenomenon could also be at play. With fresh restrictions and faster vaccination, we can expect the sentiment to remain positive at the start of the new fiscal. The earnings season will also kick in from the second week of April which could turn out to be the driver for stocks.”
Foreign portfolio investors have sold stocks worth $623 million in total this week. On Friday also, they offloaded shares worth $6.6 million, provisional information showed. Domestic institutional investors, on the other hand, purchased stocks worth $222.7 million.