Mumbai: This week was great for the domestic stock market. Sensex jumped 6,568.49 points due to strong buying by investors in five consecutive trading sessions, while Nifty also jumped by nearly two thousand points. With this rise, Sensex closed above 81 thousand and Nifty-50 closed beyond 25 thousand for the first time. This is the first time for both indices since the beginning of the Middle East crisis that they ended their weekly trading above these levels.
On Friday, the last trading day of the week, the Sensex closed at 81,028.02 points with a gain of 2.17 percent. In five sessions, it recorded a total increase of 8.82 percent i.e. 6,568.49 points. Similarly, the Nifty-50 index of the National Stock Exchange rose by 1,977.25 points or 8.58 percent to reach 25,030.35 points.
Investors excited by US election results
The victory of the opposition Democratic Party in America's mid-term elections is being considered an important reason behind this rise in the market. After this result, President Donald Trump's Republican Party came into minority in the US Congress. This has increased hopes of limiting Trump's powers and reducing military tension in West Asia. In this positive environment, investors bought heavily in the domestic market.
Amid expectations of easing tensions, the price of crude oil suddenly fell below $100 per barrel. The current closing level of both the major market indices was the highest level since February 27 this year. It is noteworthy that the very next day, America and Israel took joint military action against Iran, after which the crisis in West Asia deepened.
Financial services, cement and realty stocks shine the most
This week, the pace of rise in midcap and smallcap stocks was somewhat less as compared to big stocks. Nifty Midcap-50 recorded a gain of 5.91 percent and Smallcap-100 recorded a gain of 2.77 percent.
If we look at sector-wise performance, the financial services index led the way with a jump of 10.7 percent. Cement, realty and consumer durables groups also gained more than 10 per cent. Oil and gas sector index rose 9.6 percent, auto 9.4 percent and private banks index rose 9.1 percent.
Apart from this, there was an increase of 7.6 percent in metal group, 7.3 percent in FMCG, 4.6 percent in public banks and 4.2 percent in chemical sector. Nifty Pharma gained 3 per cent, Health Group gained 2.9 per cent and Media index gained 2.4 per cent.
Mahindra & Mahindra and Bajaj Finance made the biggest jump
Shares of 28 out of 30 Sensex companies had a weekly rise. Shares of Mahindra & Mahindra were the top gainers by rising 15.86 percent. Bajaj Finance recorded a gain of 15.52 percent, HDFC Bank 13.68 percent and Reliance Industries gained 13.28 percent.
UltraTech Cement rose 12.62 percent, ICICI Bank 12.55 percent, Titan 12.28 percent and Indigo 12.11 percent. Maruti Suzuki rose by 11.59 percent, Bajaj Finserv by 11.52 percent and Tata Steel by 10.91 percent.
Shares of Asian Paints, Axis Bank, BEL, Hindustan Unilever, L&T, ITC and Bharti Airtel also registered gains. Whereas SBI, Eternal, Adani Ports, Sun Pharma, Kotak Mahindra Bank, NTPC, Tech Mahindra, Trent, HCL Technologies and TCS also closed in the green.
On the other hand, PowerGrid shares slipped 1.89 per cent and Infosys shares slipped 0.11 per cent during the week. In this way, in the five-day rise, 28 out of 30 Sensex companies gave gains to investors.
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