The Indian stock market experienced a remarkable rally during the Budget week, marking its eighth straight week of gains.
The Sensex surged by 728 points (0.90%) and the Nifty climbed by 303 points (1.24%) last week, a streak not seen since 22 January 2018.
Top performers in the Nifty pack included Tata Motors (13%), HDFC Life Insurance (10.6%), Sun Pharma (9.3%), NTPC (8.7%), BPCL (8.2%), Titan (7.2%), SBI Life Insurance (6.3%), and Cipla (6%).
Notably, all Nifty stocks posted positive returns during this period.
Sectoral indices also saw significant gains, with Nifty Pharma up 5.77%, Nifty Media rising by over 5.5%, Nifty Auto increasing by 5.16%, Nifty Energy climbing 2.79%, and Nifty FMCG gaining 2.69%.
However, Nifty Bank (1.86%), Nifty Realty (1.69%), Nifty Finance (1.19%), and Nifty PSU Bank (0.44%) lagged behind.
The Nifty hit a new all-time high of 24,861, while the Sensex closed near its lifetime high at 81,332, up 1,292 points (1.62%).
The Nifty ended at 24,834, up 428 points (1.76%).
Market experts attribute this rally to positive US GDP data and expectations of improved global demand.
They suggest that the domestic market’s future direction will be influenced by the ongoing earnings season.
Additionally, domestic institutional investors (DIIs) have adopted a ‘buy on dips’ strategy, particularly benefiting the pharma, auto, metal, IT, and FMCG sectors.
“The market has now recovered its losses from budget day, driven by positive US GDP data and expectations of improved global demand,” experts noted.
They further added, “DIIs continue to employ a ‘buy on dips’ strategy, which contributed to market gains on the week’s last trading day.”
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