Indian equity markets delivered a robust performance this week, bolstered by favorable global cues, easing political tensions, and a resurgence in domestic investor sentiment.
Despite being a holiday-shortened and volatile week, both the Nifty 50 and BSE Sensex posted their strongest weekly gains since late September, with Friday’s session witnessing an exceptional rally.
Weekly Performance Highlights
The Nifty 50 and Sensex registered significant gains during the week ending November 22, reflecting investor confidence in the market’s resilience.
Nifty 50: Gained 1.59% for the week, closing at 23,907.25 after hitting an intraday high of 23,956.10.
Sensex: Advanced 1.98%, closing at 79,117.11, with an intraday peak of 79,218.19.
Friday’s session contributed significantly to these gains, marking the largest single-day surge in five months.
Key Market Drivers
Global Optimism
Positive cues from international markets, including a modest dip in Japan’s inflation and a 39 trillion yen stimulus package, supported the bullish sentiment. Declines in major Asian indices like CS 300 (-3.10%) and Hang Seng (-1.89%) had limited impact on broader market trends.
Domestic Factors
A rebound in investor confidence overshadowed mid-week concerns about allegations against the Adani Group, as expectations for strong corporate earnings gained traction.
Sectoral Performance
Top Performers: Nifty Realty surged 6%, driven by strong demand in the real estate sector, while Auto and IT sectors recorded weekly gains of up to 3%.
Lagging Sectors: Nifty Media and Energy underperformed, with Nifty Media posting the steepest decline among sectoral indices.
The broader market also showed positive momentum. The BSE MidCap index rose 1.3%, while the SmallCap index gained 0.9%, trailing their large-cap counterparts.
Market breadth remained positive, with 2,455 stocks advancing, 1,463 declining, and 124 remaining unchanged on the BSE.
Stock Movements
Key contributors to the market rally included heavyweights such as Reliance Industries, Infosys, ICICI Bank, ITC, and Tata Consultancy Services.
Top Nifty Gainers:
- Power Grid Corporation (+7.34%)
- Mahindra & Mahindra (+7%)
- UltraTech Cement (+5%)
Notable Losers:
- Adani Enterprises (-21%)
- Adani Ports (-10%)
- SBI Life Insurance (-5%)
Market Volatility and Technical Indicators
India’s fear gauge, the Nifty India Volatility Index, experienced sharp fluctuations, reflecting market uncertainty.
Friday’s Performance: Opened 16.76% higher at 18.76. Dropped 20.25% later in the session, closing marginally higher at 16.10.
Technical indicators pointed to an improving market trend as the Nifty reclaimed its 200-day moving average (200DMA). Analysts observed a bullish crossover in the Relative Strength Index (RSI), suggesting potential for further gains.
The Adani Factor
The Adani Group faced significant challenges mid-week after allegations surfaced regarding bribery and fraud tied to solar energy contracts.
Stock Impact
Adani Enterprises fell 21%.
Adani Ports dropped 10%.
Adani Energy Solutions declined 20%.
The group’s market capitalization decreased by nearly Rs 2 lakh crore, now standing at Rs 12.43 lakh crore. Global repercussions were also observed, with shares of GQG Partners, a major Adani investor, falling 20%.
Broader Market
Friday’s surge, the largest intraday gain since June, reinforced investor confidence. Realty and IT led the recovery, while Media and Energy lagged. Positive trends in Asia-Pacific and Europe provided a supportive backdrop for Indian equities.
Looking Ahead
Indian equities ended the week on a strong note, with large-cap indices outperforming and broader market sentiment improving.
As global markets continue to influence domestic trends, investors are closely monitoring upcoming corporate earnings and macroeconomic data for further cues.
Disclaimer – This article is for informational purposes only and is based on publicly available data and expert analyses. MarketScope Daily does not provide financial advice or investment recommendations. All references to market performance and company activities are sourced from credible reports. Readers are advised to consult financial experts before making investment decisions. MarketScope Daily is committed to unbiased and ethical reporting and does not endorse or oppose any specific company or stock mentioned herein.
