The Indian stock markets ended on Thursday on a strong note as the Nifty50 and the S&P BSE Sensex closed at record highs on the last trading day of the week. The markets witnessed a short week as the NSE Nifty and the BSE Sensex remained closed on Friday on account of Dussehra.  

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Both domestic benchmark indices gained nearly 1 per cent on Thursday. The Nifty scripted history by closing at 18,338.55, up 176.80 or adding 0.97% in the overall index, while the Sensex finished at 61,305.95, up 568.90 or 0.94% increase in the 30-share index on Thursday.  

Benchmark indices NSE and BSE overall got strong by 3.1 and 2.7%, respectively, for the week ended on Thursday.  

Talking about the Nifty scaling all-time high, Jyoti Roy, DVP- Equity Strategist, Angel One Ltd, mentioned that the Nifty has touched new all-time highs on the back of optimism due to continued improvement in economic activities. There has been a significant improvement in economic activities led by services in September, given further relaxation in restrictions due to a significant decline in the new Covid-19 cases. The expectation of further improvement in demand during the ongoing festive season, along with the strong FII and DII flows are also supporting the rally. However, any further deterioration in the global energy crisis will lead to higher energy prices and coal shortages for a longer period of time, which can have an adverse impact on the growth and is one of the key risks in the current market rally."

The rally this week was primarily led by the banking, auto, power, and metal stocks. Ahead of the September quarter results for this year, the banking stocks soared in anticipation of good earnings, pushing the Nifty Bank to a stellar closing for the holiday-shortened week on Thursday. Besides, the Tata Motors-TPG deal pushed the auto shares and the index in general. Global power shortage and reported coal crisis further strengthened the power index.    

Meanwhile, the outperformers remained the Nifty PSU Bank and the S&P BSE Momentum indices with 8.3% and 6.7%, respectively, for the week ended on October 14.  

After the Nifty PSU Bank, the Nifty Auto and the Nifty Metal were the other two top gainers on the NSE this week.  

Talking of the BSE index, the S&P BSE Auto (6.6%), the S&P BSE Metal (6.0%), the S&P BSE Power (5.9%) and the S&P BSE Utilities (5.9%) were other indices that outperformed the 30-stock benchmark Sensex, after the S&P BSE Momentum on the Bombay Stock Exchange.

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“The key harbingers of future growth could be rising inflation, hike in interest rates and sub-par GDP numbers. Although the outlook for the next 12 months is positive for India given the PLI initiatives, infrastructure pipeline, electricity reforms and other regulatory aid, investors should continue holding companies which provide the highest growth in fundamentals,” Yesha Shah, Head of Equity Research, Samco Securities, said, adding the next leg of the rally will be led by IT, Chemicals, consumer discretionary, BFSI and Capital goods stocks.
 

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)