Indian market extended the rally in the second (truncated) week ended March 17 adding almost four percent as foreign institutional investors (FIIs) turned net buyers after 10 weeks, tensions between Russian and Ukraine de-escalated and crude oil prices fell.
For the week, BSE Sensex rose 2,313.63 points (4.16 percent) to end at 57,863.93 while the Nifty50 added 656.6 points (3.94 percent) to end at 17,287.05.
All sectoral indices ended in the green with Nifty Auto and Bank indices up over 5 percent each and Realty index rising 4.7 percent.
Broader indices -- BSE mid-cap and small-cap -- added two percent each, while large-cap index rose four percent.
FIIs bought equities worth Rs 1,685.87 crore while domestic institutional investors (DIIs) continued to remain net buyers as they purchased shares worth Rs 1,290.97 crore.
In March so far FIIs have sold equities worth Rs 41,617.18 crore and DIIs have bought shares worth Rs 31,620.02 crore.
“Markets were strong this week with softening crude prices, China economic stance, favourable RBI policy hopes and return of foreign investors as buyers of Indian equities. Markets also regained as tensions between Russia and Ukraine began to de-escalate,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.
“While the worst may seem to be over in terms of geo-political tensions, a prolonged rise in inflation could be lurking around the corner as multiple sanctions placed on Russia have sparked an unbridled rally in commodity prices.
“The S&P 500 closed up more than two percent while the Nasdaq rallied almost four percent on Wednesday as investors shrugged off initial jitters following the US Federal Reserve's interest rate increase and its signal that more hikes would be needed to fight inflation, ending the pandemic era's easy monetary policy,” he added.
Sixty smallcap stocks gained 10-25 percent including Angel One, Usha Martin, Andhra Paper, AVT Natural Products, Bharat Dynamics, Tata Teleservices (Maharashtra), Reliance Capital, Brightcom Group, SREI Infrastructure Finance, Technocraft Industries (India), 5paisa Capital, Rane Brake Linings and Brigade Enterprises.
On the other hand, Future Enterprises, Future Lifestyle Fashions, Future Enterprises DVR, Future Retail, Future Supply Chain Solutions, SVP Global Textiles, Take Solutions, Suvidhaa Infoserve, Saregama India, Future Consumer and Aurionpro Solutions fell 10-20 percent.
“Our markets started the week on a positive note and surpassed the hurdle of 16,800 on Monday. After some minor profit booking in mid-week, the index resumed the momentum and ended around the 17,000 mark ahead of the US Fed event,” said Ruchit Jain, lead research, 5paisa.com.
“The resistance was broken with a gap-up opening which led to a broad-based participation and Nifty ended the truncated week a tad below 17,300 with weekly gains of almost four percent.
"It was a tremendous week for our markets where Nifty continued its upmove and surpassed crucial resistances one after another. As the markets rallied, we witnessed short covering in the derivatives segment and, on Nifty surpassing 16,800-17,000 range, a complete gush was seen to buy stocks from the broader markets,” Jain added.
Midcap gainers included Ajanta Pharma, PI Industries, Mahindra & Mahindra Financial Services, Nippon Life India Asset Management, Balkrishna Industries, Ashok Leyland and Motilal Oswal Financial Services, while losers included Jubilant Foodworks, Oil India, MphasiS, SJVN and JSW Energy.
The BSE 500 index rose 3.4 percent with 25 stocks adding 10-25 percent including Angel One, Ruchi Soya Industries, Bharat Dynamics, Tata Teleservices (Maharashtra), Brightcom Group and Brigade Enterprises.
Prashanth Tapse, vice president (research), Mehta Equities:
The auspicious occasion of Holi was celebrated at Dalal Street as the benchmark Nifty enjoyed yet another session of strong gains and, most importantly, was seen racing to hit the magical 17,500 mark. The technical landscape has turned aggressively bullish. This optimistic backdrop should take Nifty easily to its magical goalpost of 17,500 and then aggressive targets at 18,000 mark.
Gaurav Ratnaparkhi, head of technical research, Sharekhan by BNP Paribas:
Going ahead, Nifty is expected to extend towards the daily upper Bollinger Band. So 17,500-17,600 will be the short term target zone to watch out for. On the other hand 17,100-17,000 will now act as a cushion for the short term. Any minor degree dip in that range can be taken as an opportunity to increase the exposure on the long side.
Ajit Mishra, vice president - research, Religare Broking:
The recent rebound has certainly eased some pressure but lingering geopolitical tensions combined with an uptick in COVID cases in China will continue to keep participants on the edge. On the index front, sustainability above 17,350 would pave the way for the 17,500-17,700 zone. In case of any decline, the 16,800-17,000 zone would act as a cushion. Participants should focus on sectors/stocks which are showing resilience and align the positions accordingly.
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