Weekly Market Recap: Sensex and Nifty Up Nearly 2%

Benchmark equity indices in India posted a weekly gain of close to 2 per cent, backed by foreign institutional buying, easing bond yields and solid earnings from domestic firms.

Between October 26 and October 30, the Sensex gained 1,335.70 points, or 1.83 per cent, to finish at 74,459.53. The Nifty added 453.10 points, or 2.00 per cent, to close at 23,053.10.

Market experts pointed to a recovery in risk sentiment following the fall in bond yields. Although the Federal Reserve, the ECB and the Bank of Japan held interest rates steady as expected, their continued caution on inflation curbed hopes of early rate cuts.

Better macro conditions brought wider participation in the market, with mid-cap and small-cap stocks outperforming their large-cap peers.

By the weekend, sentiment had turned careful. Renewed tensions in West Asia drove up crude oil prices and set off profit booking in the broader market, although the benchmarks managed to keep their weekly gains intact.

Pharma and healthcare counters performed well during the week, largely due to positive corporate results. Real estate shares gained from the softening in bond yields. Metal, FMCG and auto stocks benefited from expectations of reduced input costs, whereas cement and oil and gas stocks saw sluggish trading.

FIIs bought shares worth Rs 6,304.67 crore this week. DIIs purchased shares worth Rs 3,109.79 crore.

Mid-cap and small-cap indices surpassed the benchmark indices in performance this week. The Nifty Midcap 100 recorded a rise of 2.69 per cent, and the Nifty Smallcap 100 registered a gain of 4 per cent.

At the end of the week, Brent crude was priced at around $117 per barrel. The market now awaits the upcoming OPEC+ review, which may bring a major announcement regarding supply.