Despite a sharp sell-off seen across sectors on Friday as investors became cautious ahead of the Union Budget (2024-2025), Indian markets managed to end this week on a positive note, marking their seventh consecutive week of gains.
The Nifty 50 closed today’s session down by 1.10% at 24,530 points, although it reached a new all-time high of 24,854.80 points earlier, surpassing the 24,850 mark for the first time. Despite today’s drop, the index finished the week with a modest gain of 0.12%, continuing its bullish trend for the seventh consecutive week.
Similarly, the S&P BSE Sensex ended the session down by 0.91% but recorded a weekly gain of 0.11%, closing at 80,604 points. The index also set a new all-time high of 81,587 points during today’s session. The index has also recorded seven consecutive weekly gains.
Meanwhile, mid- and small-cap stocks ended their six-week run, with the Nifty Midcap 100 index dropping 2.21% this week and the Nifty Small Cap 100 index sliding 2.91%.
Notably, Indian markets have sustained their upward momentum since the formation of the BJP-led government at the center. Sector rotation has played a key role in supporting the front-line indices at elevated levels.
It was the auto and FMCG sectors that led the rally, with private banks joining in to bolster the indices. Later on, public sector banks also contributed to these gains.
This week, the rally was driven by IT stocks, buoyed by strong performance in the June quarter (Q1FY25) and expectations regarding the Federal Reserve’s interest rate cut. The Nifty IT index ended this week with a gain of 2.31%, maintaining upward rally for the fifth consecutive week.
The index surpassed the 40,000 mark for the first time in the previous session and extended its rally today, crossing the 40,500 level to achieve a new all-time high of 40,682 points.
Following strong performances by TCS and HCL, Infosys also reported robust results for the June quarter today, leading domestic and global brokerage firms to raise their target price for the stock. As a result, Infosys hit a 24-month peak at ₹1,844 apiece and is currently trading 8.20% below its all-time high of ₹1,953.90, achieved in January 2022.
The impressive results from IT majors have fueled optimism among investors about the sector’s potential recovery.
Looking ahead, attention will turn to the Union Budget for 2024–2025, scheduled to be presented on July 23. Analysts expect a rural boost in the full budget.
Beyond the fiscal math, there could be announcements to support housing and consumption at the lower end. Any announcements on raising the capital gain tax on equity markets could weigh on sentiment and domestic flows, said Nuvama Institutional Equities.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
