Indian benchmark indices had another good week of trade with the Sensex one again ending the week higher.

This time the gains were led by a sharp rally in the share price of HDFC Bank, which jumped following reports that the RBI had hiked the FII limit in the bank. The stock surged almost 7 per cent on Friday alone, but ended only 3 per cent higher. Global markets were also buoyant with the Dow Jones and the S&P 500 hitting another record in trade. How far the rally will extend in the US is difficult to say, but markets have been on a tear in the US.

Indian markets have underperformed global markets in the last few weeks, but, they are now showing signs of participating in the rally, thanks to good support from domestic institutions.

Another set of stocks that saw value buying this week were stocks from the IT sector. CLSA upgraded the sector to a buy, while reports of a TCS buyback, pushed stocks like Infosys and TCS higher. Banking stocks, apart from HDFC Bank were a little subdued this week, with good selling coming in on every rally in PSU banking stocks.

Indiabulls Housing Finance was another stock that saw good action after reports that this stocks would be included in the Nifty.

How far stocks would move would now depend on the global rally. The movement particularly in the US has been fast and furious and if the momentum continues we may see Indian stocks moving higher.

GoodReturns.in