On Friday, the last trading day of the week, the Sensex closed at 78,493.54 with a gain of 504.86 points or 0.65 percent. Whereas Nifty rose 156.80 points or 0.65 percent and closed at the level of 24,353.55.
At the sectoral level, there was a buying environment in almost all the sectors. According to the report of Bajaj Broking Research, the market trend remained positive throughout the week. Especially Nifty FMCG, Metal and Oil & Gas sectors recorded a rise of 1 to 3 per cent, while the IT sector remained relatively weak.
Midcap and smallcap stocks outperformed the broader indices. The Nifty Midcap index gained about 1.27 per cent, while the Smallcap index gained about 1.48 per cent.
According to analysts, Indian markets witnessed a slow but steady recovery this week. Improving global environment and falling crude oil prices strengthened investor confidence. Although an atmosphere of caution remained in the market, continued buying and increasing risk appetite strengthened the index.
Ponmudi R said that compared to recent weeks, this time the market fluctuations remained quite controlled. When there was a decline, investors showed buying, which is an indication that the market sentiment is gradually strengthening. However, the market has still not succeeded in giving a decisive breakout at the upper level, which makes it clear that the trend is still in the phase of change.
The market trend now seems to be moving towards cautious optimism. Soft crude oil prices, better global cues and steady investment flows are supporting this recovery. Downside risks appear to be limited in the near future, while upside potential is gradually increasing.
Meanwhile, there have also been signs of improvement in the attitude of foreign institutional investors (FIIs). After long selling, FIIs bought in the last three sessions of the week, which supported the market. However, on a full week basis their investments remained negative with light outflows of around Rs 250 crore.
On the other hand, domestic institutional investors (DIIs), who were continuously supporting the market till now, were seen booking profits in the last sessions of the week. Withdrawals of about Rs 6,300 crore were recorded from DIIs in the entire week.
Despite this, the role of domestic investors in maintaining market stability remains strong and they will continue to provide structural support to the market.
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