Indian markets post biggest weekly gain since June

The benchmark 30-share Sensex gained 3.3% during the week, most since the week ended June 19

The country’s benchmark indices capped their biggest weekly advance in nearly four months on the back of foreign inflows as risk appetite improved after the US Federal Reserve indicated it wasn’t in a hurry to raise interest rates.

The benchmark 30-share Sensex on the BSE exchange gained 3.3 per cent during the week, highest since the week ended June 19. Globally, too, stocks were poised to post the biggest weekly gain in many months.

On Friday, the Sensex closed 234 points or 0.7 per cent higher at 27,079.51, the highest close since August 21. The 50-share Nifty on the National Stock Exchange added 60 points or 0.74 per cent to 8,189.7.

Most Asian markets rallied, while European stocks saw strong gains on opening after the minutes of the Fed meeting suggested the US central bank was likely to go easy on rates.

“Markets ended the week on a positive note, buoyed by supportive global markets post the release of the Fed minutes,” said Dipen Shah, head of private client group research, Kotak Securities.

The US markets on Thursday had posted strong gains, while oil prices had also extended a rally after release of the Fed minutes.

“The minutes indicate a dovish stance, which has increased optimism on the possibility of a delay in rate hike,” said Vinod Nair, head-fundamental research, Geojit BNP Paribas.

Foreign institutional investors (FIIs) net-bought shares worth Rs 480 crore on Friday, provisional data showed. After sharp outflows from the Indian market in August and September, FIIs have poured nearly Rs 2,000 crore into Indian stocks so far this month. Foreign flows helped the rupee appreciate by a little more than one per cent this week.

On Friday, metal companies were among the biggest gainers.  Vedanta, the country’s biggest copper producer, rallied 12 per cent, while Tata Steel gained four per cent. Tata Motors rose 3.8 per cent, extending its gain to 18 per cent this month.

Observers said the market would take cues from corporate results in the coming week. Also, economic data from China will be keenly eyed.

“Quarterly results will be the most important fundamental trigger for markets in the next few weeks. Company-specific volatility will be seen based on quarterly numbers,” said Shah.

Despite the gains in the headline indices, the overall market breadth was mixed on profit taking, after sharp gains over the past two weeks. There was almost one declining stock for every advancing one on the BSE. The broader indices underperformed the benchmarks, with the BSE midcap index declining 0.06 per cent and the smallcap index gaining 0.2 per cent.