New Delhi, March 22 (IANS). Domestic stock markets saw a huge jump this week. The benchmark index Nifty and Sensex rose by more than four percent, the biggest weekly lead in four years. Experts said on Saturday that this boom came due to improvement in investors’ perception, increasing foreign investment and positive global developments.
The Nifty rose by more than four percent, which is the biggest weekly jump since February 2021. The Sensex also had a weekly gains of four percent, which is the highest since July 2022.
This bounce in the market has come due to the return of FII amidst the strength of the rupee.
In addition, a huge decline in many stocks in recent months created a buying opportunities at a lower price, making investors ahead to take advantage of low valuation.
The Nifty closed at 23,350.4 points on Friday, the last day of the trading week, while the Sensex stood at 76,905.51 points.
The benchmark indices rose in the fifth consecutive season on Friday. The market graph went upwards by purchasing on a broad ground.
According to Bajaj Broking Research, the Nifty Midcap and Smallcap continued to rise by 1.4 percent and 2.1 percent respectively.
Senior Vice President of Railor Broking Limited, Research Ajit Mishra said, “Many factors contributed to sharp recovery. Pressure reduction from foreign institutional investors (FIIs) and positive flow in both cash and derivative areas provided the necessary stability. In addition, crude oil prices and dollar index remained at the lower level after the recent decline, which led to the strengthening of the market dignity.”
In addition, signs of soft trend from the US Federal Reserve over future interest rates and reports of tension in the Russian-Ukraine conflict increased optimism.
This boom was on a broader basis, which contributed to all major areas.
Reality, energy and pharma remained the most profitable, while midcap and smallcap indices rose by 7.7 percent to 8.6 percent, leading to overall rise in the market.
According to experts, investors will be focused on the end of the derivative contracts and FII activity in the coming weeks.
On the global front, American markets will be monitored, tariff -related updates and GDP growth data expected to affect investors perception. Although temporary relief was observed after a sharp decline in US markets, mixed indications indicate possible volatility in coming sessions.
Experts monitoring the market are advising to adopt the strategy of ‘purchasing in recession’ and focus on areas who have shown constant strength.
Banking, Financial, Metal and Energy Stocks remain a favorite option of investors, while PSUs and auto stocks can also be searched selected opportunities.
-IANS
SKT/Ekde
