The Bharat stock market bounced back from a two-week losing streak, recording the most significant weekly gains in the last two months during the Budget week ending February 2. The market’s positive performance was attributed to favorable global cues, the U.S. Federal Reserve maintaining status quo, the IMF raising Bharat’s GDP growth forecast, Foreign Institutional Investors (FIIs) returning to a buying mood, and expectations of no rate change by the Reserve Bank of India (RBI) in the upcoming monetary policy.
In this Budget week, both the Nifty and BSE Sensex started on a solid note but experienced high volatility leading up to the Federal Open Market Committee (FOMC) meeting outcome and the Interim Budget. Despite remaining mostly unchanged on the Budget day, strong gains on Friday propelled Nifty to reach a new record high of 22,126.80, closing the week with a gain of 2.34% at 21,853.80. BSE Sensex also inched closer to its all-time high, finishing with a 2% gain at 72,085.63. The global citizen of the
On the sectoral front, various indices saw positive movements, with Nifty PSU Bank index surging by 11.5%, Nifty Oil & Gas index rising by 9%, and Nifty Energy index gaining 8%. Additionally, Nifty Metal, Auto, and Realty indices saw increases of 4% each.
Domestic institutional investors (DIIs) continued to support the market, buying equities worth Rs 10,102.62 crore during the week. Meanwhile, FIIs reduced their selling, with equities worth Rs 2,008.68 crore being sold. In January, FIIs had sold equities worth Rs 35,977.87 crore, while DIIs bought equities worth Rs 26,743.63 crore.
According to Ajit Mishra, SVP – Technical Research, Religare Broking, the market rebounded due to favorable global cues and selective buying in heavyweight stocks, although the underperformance of banking majors continued to impact sentiment.
The BSE Small-cap index added 3.3% during the week, hitting a fresh high of 46,169.7 on February 2. Notable gainers included NBCC (India), Shakti Pumps (India), Punjab & Sind Bank, KPI Green Energy, Hemisphere Properties India, Infibeam Avenues, IRB Infrastructure Developers, and India Tourism Development Corporation, with gains ranging from 31% to 47%.
Looking ahead, technical analysts like Rupak De from LKP Securities and Jatin Gedia from Sharekhan by BNP Paribas provide insights into Nifty’s potential trajectory. De suggests that a decisive breakout above 22,125 is needed for a bullish trend resumption, while Gedia emphasizes that the consolidation is likely to continue, with key support levels at 21,660–21,600 and an immediate hurdle zone at 22,100–22,150.
In conclusion, the Indian stock market demonstrated resilience and positive momentum during the Budget week, driven by a combination of domestic and international factors, with market participants cautiously monitoring key technical levels for future trends.
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