New Delhi: Indian stock markets recorded their strongest weekly performance in four years, with benchmark indices Nifty and Sensex soaring over 4 per cent each. The rally was driven by renewed investor confidence, foreign fund inflows, and positive global cues, experts said on Saturday.
Market Rally Hits Multi-Year Highs
Nifty surged over 4 per cent, marking its best weekly gain since February 2021, while the Sensex posted a similar increase, the highest since July 2022. The indices closed near their weekly highs, with Nifty at 23,350.4 and Sensex at 76,905.51.
The stock market’s upward trajectory continued for the fifth straight session on Friday, propelled by broad-based buying. Midcap and small-cap indices also extended their gains, rising 1.4 per cent and 2.1 per cent, respectively, according to Bajaj Broking Research.
Key Drivers of the Rally
Several factors contributed to this sharp recovery:
FII Comeback: Foreign institutional investors (FIIs) returned to the market, with increased activity in both cash and derivatives segments.
Rupee Strength & Lower Oil Prices: A stabilizing Indian rupee and declining crude oil prices supported market sentiment.
Global Developments: Dovish signals from the US Federal Reserve regarding potential rate cuts and reports of easing tensions in the Russia-Ukraine conflict further boosted optimism.
Ajit Mishra, SVP, Research at Religare Broking Ltd., noted that easing FII pressures and a favorable global environment helped stabilize the market.
Broad-Based Gains Across Sectors
The rally was not limited to large-cap stocks, as midcap and smallcap indices saw impressive gains of 7.7 per cent and 8.6 per cent, respectively. Among sectoral indices, realty, energy, and pharma stocks led the charge, reflecting improved investor confidence across industries.
Outlook: Key Events & Investment Strategy
With no major domestic economic events lined up, market focus will shift to the expiry of March derivatives contracts and continued FII activity. On the global front, developments in US trade policies and GDP growth data will be closely monitored, as they could introduce volatility.
Market analysts recommend a ‘buy on dips’ strategy, particularly in sectors showing resilience. Banking, financials, metals, and energy stocks remain preferred investment choices, while opportunities in PSU and auto sectors can also be explored.
Despite recent gains, experts advise caution due to potential global market fluctuations. Investors should remain vigilant and capitalize on favorable opportunities in the evolving market landscape.
