The market extended gains for the third week ended June 3 after the corporate earnings season, supported by positive global cues and favourable updates on monsoon progress.
Technology, capital goods, energy, metal, oil & gas, and realty stocks helped the volatile market post around one-and-a-half-percent gains. However, banks, power, and healthcare stocks were under pressure. BSE IT, Realty and Energy were the biggest gainers and outperformed every other index, rising four to five percent.
BSE Sensex climbed 885 points or 1.6 percent to 55,769 and the Nifty50 jumped 232 points or 1.4 percent to 16,584.
Broader indices also witnessed decent traction with the BSE Midcap index rising 257 points or 1.14 percent to 22,775 and the Smallcap climbing 763 points or three percent to 26,384.
More than 670 of 920 stocks on the Smallcap index closed higher during the week, of which top 101 stocks cranked out double digit returns in just five days of trade including Rattanindia Enterprises, Mirza International, Timken India, DB Realty, Birla Tyres, Hindustan Oil Exploration Company, Everest Kanto Cylinder, PG Electroplast, GTL Infrastructure, Raymond, Monte Carlo Fashions, Fine Organics Industries, Century Textiles and Industries, Shiva Cement, and Future Lifestyle Fashions which rallied 20-32 percent.
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Further, the following gained between 15 and nearly 20 percent: Elecon Engineering Company, Sterling Tools, Barbeque Nation Hospitality, Ashoka Buildcon, Suzlon Energy, Dollar Industries, Route Mobile, Zen Technologies, MM Forgings, Mahindra Lifespace Developers, KPIT Technologies, Lemon Tree Hotels, Ion Exchange (India), HBL Power Systems, and Shree Renuka Sugars.
In addition, these stocks rallied between 10 and nearly 15 percent: Meghmani Finechem, Computer Age Management Services, APL Apollo Tubes, Arvind Fashions, Polyplex Corporation, Allcargo Logistics, Religare Enterprises, PC Jeweller, City Union Bank, Balaji Amines, Shankara Building Products, Gravita India, Angel One, Reliance Power, NIIT, Finolex Industries, Capacite Infraprojects, Meghmani Organics, BASF India, Va Tech Wabag, Khadim India, Happiest Minds Technologies, CreditAccess Grameen, Matrimony.com, Metro Brands, Krsnaa Diagnostics, Capri Global Capital, Tinplate Company of India, and Karnataka Bank.
Foreign institutional investors (FIIs) remained net sellers to the tune of more than Rs 6,600 crore during the week, offset by domestic institutional investors who bought Rs 6,845 crore worth of shares in the same period.
In the coming week, the market is expected to continue its uptrend amid volatility and monetary policy meeting and anything negative on the global front could spoil the party, experts said.
"Markets have been witnessing a rebound for the last 3 weeks, however, the move lacks decisiveness due to lingering challenges like global tightening due to inflation, geopolitical tension, etc," Ajit Mishra, VP - Research at Religare Broking, said.
With the earnings season behind us, he feels the focus would be on the monetary policy review meet scheduled for June 6-8. Markets have already priced in another hike citing sticky inflation, however, the focus would be on commentary amid updates on a favourable monsoon, said Mishra.
The market expert feels the Nifty would regain some strength above 16,900 but a break below 16,400 will put bears back in the game. Meanwhile, participants should focus on sector/stock selection as markets are offering opportunities on both sides but must avoid going overboard, he advised.
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