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Indian Indices Log Best Weekly Gains Since April; Sensex, Nifty Gain Over 9% This Week

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The benchmark indices extended their winning run to the fifth straight session since the Budget day to Friday, with Sensex closing at a fresh lifetime high and scaling past levels of 51,000 for the first time ever intra-day. In line Nifty also breached 15,000 levels. The RBI in its last bi-monthly monetary policy for FY21 announced yesterday stood pat on key policy rate and continued with accommodative stance besides coming up with fresh liquidity measures to revive growth.

Indian Indices With Gains Over 9% Log Best Weekly Gains Since April
 

Amid the euphoria around the Budget 2021 announcements made on February 1, Indian indices clocked their best weekly gains since the week ending April 10. Sensex jumped close to 4500 points or about 10% in just 5 days, while Nifty also notched gains of over 9%. "Market mood has been quite exuberant in the aftermath of the Union Budget along with stronger-than-expected earnings," said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.

Further the street also cheered RBI's move that exempts banks from adhering to cash reserve ratio requirements against loans disbursed to new MSME borrowers. Other than the positive monetary policy decision which stressed on ensuring enough liquidity, street was also enthused by SBI's quarterly numbers for Q3FY21 which came in better than expected. SBI ended the Friday's session with gains of close to 11 percent.

Nifty Bank also hit a record high of 36,615, led by gains in SBI, Kotak Mahindra Bank, HDFC Bank, and Bank of Baroda. "This is good news for banks and financials along with positive rub off to domestic cyclical sectors. We remain constructive on equity markets and believe that the economy and corporate earnings are at a cusp of a new multi-year upcycle", Gaurav Dua, senior vice president, head of capital market strategy, Sharekhan by BNP Paribas, said.

Broader markets however saw profit booking and underperformed the headline indices with Nifty Midcap 100 settling lower by 1%.

 

In the global markets, the Wall Street in overnight trade hit record highs on the S&P 500 and the Nasdaq on indications of progress in the US economic stimulus front, besides there was also seen rebound in the jobs market.

GoodReturns.in

Read more about: stock markets
Story first published: Saturday, February 6, 2021, 11:28 [IST]
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