Indian Stock Market Surges Amid Global Declines

In a remarkable display of resilience, Indian benchmark indices outshone their global counterparts on Friday, reflecting a strong bullish sentiment among investors. The Sensex surged by 557.45 points, or 0.73%, closing at an impressive 76,905.51, while the Nifty climbed 159.75 points, or 0.69%, finishing the day at 23,350.40. This marks the fifth consecutive day of gains for both indices, showcasing a robust market performance.

Record Weekly Returns for Indian Indices

The remarkable performance of the Nifty has resulted in its best weekly return of 4.26% in four years, while the Sensex achieved its highest weekly increase of 4.17% since July 22, 2022. Broader market indices like the BSE Midcap and BSE Smallcap also shone brightly, with gains of 1.14% and 2.05% respectively on Friday. Notably, the BSE Midcap recorded its finest weekly return of 7.09% in four years, and the BSE Smallcap achieved an impressive 7.87% rise over five years.

• Key Weekly Highlights:
  • Nifty: 4.26% weekly gain (best in 4 years)
  • Sensex: 4.17% weekly gain (best since July 2022)
  • BSE Midcap: 7.09% weekly gain (best in 4 years)
  • BSE Smallcap: 7.87% weekly gain (best in 5 years)

Investor Sentiment Shifts

"Despite the negative sentiment in global markets, local investors have shown strong resilience, particularly as foreign institutional investors returned to the Indian equity scene," remarked Prashanth Tapse, Senior Vice President of Research at Mehta Equities. The recent market correction has made numerous stocks appealing, especially in the mid- and small-cap sectors, prompting investors to engage in short-covering that allowed the Sensex to momentarily surpass the 77,000 mark during the day.

The broad market rally translated into a substantial increase in investor wealth, soaring by Rs 4.69 lakh crore on Friday alone, and accumulating to Rs 22.12 lakh crore over the week.

Foreign Investment Boost

On Friday, foreign portfolio investors (FPIs) made significant purchases amounting to Rs 7,470.36 crore, marking the highest inflow in a month and signaling a renewed interest in the Indian market after a two-day buying spree. This follows Thursday’s buying of Rs 3,239.14 crore. In contrast, domestic institutional investors sold shares worth Rs 3,202.26 crore, continuing a trend seen the previous day, according to provisional data from the BSE.

“The Indian market has wrapped up the week with a consistent recovery. The expected decline in risk-free rates, along with a correction in the dollar index, is encouraging funds to flow back into emerging markets,” shared Vinod Nair, Head of Research at Geojit Financial Services.

Broad Sector Gains

Every sector on both the BSE and NSE closed positively for the week, with notable gains seen in industries such as real estate, healthcare, capital goods, and utilities, all rising over 7%.

Notable Stock Performances

Except for Tech Mahindra (down 2.06%) and ITC (down 1.47%), the majority of stocks within the Sensex and Nifty indices recorded positive returns for the week. Top performers included Zomato, ICICI Bank, Tata Motors, L&T, and Adani Ports, with gains soaring as high as 12.98%.

Contributors to the Sensex’s impressive rally included ICICI Bank and HDFC Bank, which together accounted for nearly 1,000 points of the 3,076-point surge throughout the week.

Conclusion

The Indian stock market’s ability to thrive amid global downturns highlights its resilience and attractiveness to both domestic and foreign investors. As market conditions evolve, continued investor interest could pave the way for further growth in the coming weeks.