📷 Image Credits: Moneycontrol
The Indian stock market witnessed a week of mixed performance, with broader indices hitting fresh highs despite volatility. The BSE Small-cap index rose by 1.5 percent during the truncated week that ended on June 21. While the Mid-cap and Large-cap indices ended on a flat note, the BSE Sensex added 217.13 points, closing at 77,209.90, and the Nifty50 index rose by 35.5 points to reach 23,501.10. On June 19, the BSE Sensex touched a fresh record high of 77,851.63, and the Nifty50 hit a record high of 23,667.10 on June 21.
The market saw a surge in specific sectors, with the Nifty Bank index gaining more than 3 percent, the Nifty Information Technology index up nearly 2 percent, and the Nifty Metal index up by nearly 1 percent. However, sectors like Nifty Auto, Nifty FMCG, Nifty Oil & Gas, and Pharma indices faced declines during the week.
Foreign institutional investors (FIIs) bought equities amounting to Rs 2,030.83 crore, and Domestic Institutional Investors (DII) also purchased equities worth Rs 6,293.38 crore. Market experts attribute the positive market sentiment to factors such as the formation of a coalition government, anticipation over the upcoming budget, and increased institutional inflows.
Vinod Nair, Head of Research at Geojit Financial Services, expressed optimism about the market’s upward trend, emphasizing the importance of government actions to stimulate consumption and drive growth initiatives. Despite the positive sentiment, concerns remain about the slow progress of the monsoon and heatwaves in northern India.
The BSE Small-cap index saw significant movement, with certain companies like Moschip Technologies, Bhansali Engineering Polymers, Hester Biosciences, and others gaining between 20-40 percent. Conversely, companies like Lancer Containers Lines, Som Distilleries and Breweries, and others experienced losses between 8-11 percent.
Experts like Siddhartha Khemka and Amol Athawale provided insights on the market’s likely trajectory, suggesting that budget-related sectors would remain active, and the market is expected to consolidate at higher levels. Additionally, investors are eagerly awaiting the outcomes of the GST council meeting and global economic indicators.
The Indian stock market is poised for further developments, and the recent performance highlights the resilience and growth potential of the domestic indices amidst global uncertainties.
