Nifty extends gains for 5th straight week as energy, FMCG stocks lead rally


Stock market this week India

The Indian market extended its weekly winning streak to the fifth week in the four-day trading week. Major indices rallied about 0.3% this week. 

Indian stock market this week: Nifty movement this week

The Indian equity market was closed on Monday on account of Independence Day.

Nifty started off the week on a strong note on Tuesday, as better-than-expected domestic inflation data boosted rate sensitive banking, realty and auto stocks. Investors hoped that easing inflation may make RBI less aggressive in interest rate hikes. 

The index extended its rally on Wednesday, as softer inflation, declining commodity stocks and consistent buying from FII’s aided the rally. Sensex soared past the 60,000-mark, to end at 4-month highs. 

The index ended a volatile session with minor gains on Thursday. Negative Asian market cues weighed on sentiments. Upto Thursday, Nifty had posted its biggest winning streak in 2 years. The Nifty had gained about 18% from June lows.  

Nifty fell on the back of profit booking after the recent rally, as investors turned cautious due to negative global cues. Rise in Dollar index, higher valuations and fear of aggressive rate hikes weighed on sentiments. For the week, Nifty gained 0.3%.

Market this week India: Top Nifty gainers and losers

Indian stock markets this week: Key highlights

Nifty firms post earnings below estimates: In the Apr-Jun 22 period, Nifty companies reported an aggregate 23% on-year rise against the estimation of 31%, led by BFSI. "Excluding BFSI, profit grew 18 per cent YoY (est. 28 per cent). Heavyweights, such as RIL, Tata Motors, SBI, HDFC and BPCL posted a weaker-than-expected performance, thus weighing on the Nifty’s earnings," noted Motilal Oswal. 

Major disappointment came in from the oil & gas sector wherein marketing margins came in lower than estimated, noted ICICI Securities. However, capital goods, metals and mining and pharma space surprised on the positive side, it added. 

Market this week India: Top sectoral gainers and losers

Inflation eases slightly: India's retail inflation fell slightly to 7.01% in June against 7.04% in the previous May. However, the CPI inflation has now remained outside the RBI's upper tolerance band of 6% for the sixth consecutive month and has remained above 7% for the third consecutive month. Analysts expect the RBI to continue to hike repo rates in the upcoming policy meeting to bring the high inflation under control. 

IPO back in the picture: Syrma SGS Technology Limited IPO opened for subscription last week. It is the first IPO after more than two months. The issue size of IPO is Rs 840 crore and the price range is between Rs 209 and Rs 220. The IPO got subscribed by 33 times at the end of Day 4 on Thursday. 

  • What happened in Indian markets this week?

  • Which sectors gained and which sectors lost most this week?

  • Which were the top Nifty gainers?

  • Which were the top Nifty losers?