The Sensex rallied greater than 1,600 factors or 2.4% final week and ended at a document closing excessive of 71483.75 factors on Friday.
Whereas the positive aspects have been broad-based out there, data know-how, metals, infrastructure, and realty topped the listing.
The S&P BSE IT index clocked almost 7% positive aspects final week, led by HCL Applied sciences, which gained greater than 9% and Infosys that added 6% positive aspects. Wipro, Tata Consultancy Companies, Persistent Techniques, LTIMindtree, and L&T Know-how Companies added 6-12% weekly positive aspects.
The robust run within the know-how shares got here following a dovish outlook supplied by the US Federal Reserve on rates of interest. The central financial institution guided for 75 foundation factors of rate of interest cuts in 2024. This drove the risk-on sentiment and pushed IT shares increased.
The dovish outlook by the Fed additionally boosted sentiment for the metallic pack which turned the second finest performing sectors final week. The S&P BSE Steel index gained 4.5% final week and in addition hit its lifetime excessive on Friday.
Shares throughout ferrous and non-ferrous segments rallied, with Metal Authority of India logging 14% weekly positive aspects, whereas Hindalco Industries notched 7% positive aspects. JSW Metal, Tata Metal, Metal Authority of India, and Vedanta gained greater than 3-6% final week.
In the meantime, robust home macro indicators continued to drive shares within the infrastructure and actual property sectors increased. The S&P BSE Infrastructure and Realty indices gained 3.5% every final week.
Within the realty pack, Oberoi Realty, Godrej Properties, Phoenix Mills, and DLF clocked over 2-8% weekly positive aspects.
Among the many BSE India Infrastructure index, Indian Railway Finance Company was the highest gainer, rallying 24% final week. In the meantime, GMR Airports surged over 12% on over
Rs 1,600 crore funding by GQG Companions.
Will the bull run maintain?
After the stellar present final week and, infact, in December, analysts do see probabilities of some consolidation. Nonetheless, they’ve held their bullish view available on the market.
“All indications are within the favor of ongoing development persevering with, and we anticipate the Nifty to inch in the direction of 22,150 ranges,” stated Ajit Mishra, SVP – technical analysis, Religare Broking, recommending merchants to proceed with the “purchase on dips” method.
A pointy up transfer within the IT and among the banking heavyweights has strengthened the favorable view, whereas others are additionally contributing on a rotational foundation.
Nonetheless, Mishra recommends merchants to remain selective in midcap and smallcap house.
(Disclaimer: Suggestions, solutions, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Occasions)
