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After hitting an almost eight-month low earlier this month, the market recovered this week, rising for six straight sessions.
On Friday, the Nifty closed 50 points up at 8,225 while the Sensex gained 200 points at 27,316. Over the week, the Sensex and Nifty have gone up by 890.83 and 242.05 points, respectively, snapping their three-week losing streak.
The revival of the monsoon and a dovish stand by the US Fed have led to renewed interest in the Indian market.
“The arrival of the monsoon and 12 per cent above-normal precipitation at the end of last week washed off the concerns of investors,” said Ravi Shenoy, AVP-Midcaps Research, Motilal Oswal Securities. “Greece and the derivatives expiry should dictate market movements next week. The monsoon should ease inflation worries and boost finance and auto stocks, while softer oil prices could see OMCs outperform the broader markets.”
On Friday, FIIs sold (net) equities worth ₹106 crore while DIIs bought (net) equities worth ₹448 crore. All broader and sectoral indices barring media and pharma closed in the green. “The increase in global risk and China’s outperformance were among the important reasons for our past underperformance,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services. “In the meantime India has got a better-than-expected monsoon and moderating inflation. To continue this sustenance, we need to see better government spending and lower interest rates.”
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