Sensex, Nifty post fourth straight weekly rise; Dr Reddy's rises over 3%

The benchmark Sensex and the Nifty indices logged their fourth straight weekly advance on Friday. Positive global markets amid growing optimism that rising inflation will prove transitory helped investors mount bullish bets.

After rising 341 points, the Sensex settled 174 points, or 0.33 per cent, higher at 52,475. The Nifty closed at a new record of 15,799, with a gain of 61.6 points, or 0.4 per cent. The weekly gain was a modest 0.3 per cent as the Bank Nifty index ended the week with losses, snapping a three-week gaining streak.

Dr Reddy’s was the top gainer in the Sensex pack on Friday, rising 3.03 per cent, followed by PowerGrid, TCS, Infosys, HCL Tech, Reliance Industries and Tech Mahindra.

On the other hand, L&T, IndusInd Bank, Bajaj Finserv, Bharti Airtel, ICICI Bank, Axis Bank and ITC were among the laggards, dropping up to 1.07 per cent.

“Tracking cues from positive global markets, Indian equities remained in the green zone. The US consumer inflation data eased worries as it was seen as temporary and insufficient for the Fed to taper its bond-buying policy. Global sentiments were further boosted with European Central Bank raising its growth estimates and pledging its liquidity support," said Vinod Nair, head of research, Geojit Financial Services.

Paras Bothra, president of equity research at Ashika Group, said domestic markets remained firm on expectations of improving consumer and business confidence amid phased easing of lockdowns and declining new Covid-19 cases. “The government also does not expect the economic impact of the second wave of the Covid-19 pandemic to be as severe as the first,” he added.

World markets remained on a firm footing after the S&P 500 surged to a record high despite a spike in consumer prices in the US. Dovish comments from European Central Bank also buoyed investor sentiment.