Weekly Wrap (July 1-5): SENSEX Reaches 80K as Indices Rise for the Fifth Consecutive Week

 

The SENSEX reached the 80,000 milestone for the first time on July 3. Over the week, SENSEX increased by 1.21%, while NIFTY grew by 1.3%. This marked the fifth consecutive week of gains for Indian benchmark indices, driven by easing inflation concerns and hopes for rate cuts.

Key Highlights:

• - SENSEX broke the 80,000 mark amid easing inflation worries, strengthening hopes for rate cuts, and the return of Foreign Institutional Investors (FIIs) to the Indian equity markets.
• - Broader NIFTY also reached 24,400.
• - US Federal Reserve Chairman Jerome Powell’s comments about a disinflationary path in the US boosted global equities, raising hopes for a Fed rate cut by September. This optimism extended to the Reserve Bank of India possibly reducing domestic rates.
• - Investors were optimistic about the quarterly earnings outlook of Indian corporates, supporting premium valuations.

Weekly Performance:

• - The stock markets began the week positively, with NIFTY closing at a record 24,141 on Monday.
• - On Tuesday, key indices hit record levels intraday but closed lower due to profit-taking in select banking, telecom, and auto shares.
• - On Wednesday, positive global equities and gains in FMCG and banking shares helped SENSEX and NIFTY resume their upward trend. SENSEX hit 80,000 intraday, and NIFTY surpassed 24,300.
• - Concerns over premium valuations led to some consolidation in the last two trading sessions of the week.
• - SENSEX and NIFTY closed flat on Thursday as investors booked profits. On Friday, the indices settled mixed after recovering from the day’s lows.

 

Weekly Gains:

• - SENSEX ended the week just below 80,000 at 79,996.60, down 53 points, while NIFTY closed at 24,323.85, rebounding from a low of 24,168.
• - SENSEX increased by 10,000 points to breach 80,000 from 70,000 in just 139 days. It reached this milestone on July 3, having previously scaled 70,000 on December 11, 2023. Despite a significant correction on June 4 due to election results, SENSEX rallied over 2,600 points, or 3.6%, in just two weeks.

Major Gainers:

• - ONGC, Coal India, Tata Consumers Products, and Wipro were among the major gainers this week. ONGC rose by around 7%, Coal India by 5%, while Tata Consumer Products and Wipro each increased by more than 4%.

Sector Performance:

• - IT and pharma shares saw a revival, with the NIFTY Pharma and IT indices rallying around 4%. This was driven by easing inflation worries and hopes for a US rate cut, which is significant for these sectors.

Outlook:

• - With SENSEX at 80,000, concerns about premium valuations have increased, potentially leading to market consolidation. However, continued FII buying in the cash market could provide support. US rate cut hopes are strong, but the upcoming non-farm payroll data will be crucial in determining the Fed’s next moves.

Read more :

No related blogs available.