Benchmarks gain, broader market in pain: M-cap fell Rs 911 bn last week

The benchmark BSE Sensex and Nifty 50 indices gained about two-three per cent last week, their biggest weekly advance in nearly a year. The gains were on the back of sharp upmoves in banking and technology stocks, which have significant weigh in the benchmark indices. On an equal-weight basis, the benchmarks were up only a per cent. The broad market-based BSE 500 index, on the contrary, ended with nearly a per cent loss. Also, India’s total market cap fell Rs 911 billion last week, even as the

Sensex ended at a new all-time high. Overall, the market breadth was weak, as close to three stocks declined for every one advance on the BSE. Experts say the market rally is on a weak footing, largely being driven by banking stocks.

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The Nifty Bank index, a gauge for the performance of banking stocks, gained 4.5 per cent last week. If bank stocks correct due to profit-taking, the markets will tumble, said an expert.