Sensex, Nifty gain over 1% each in holiday-shortened week; IT and Metals shine most - what should investors do?

Market This Week: In a holiday-shortened week, the Indian market concluded on a positive note as the benchmark indices Nifty50 and Sensex gained by 1.28 and 1.33 per cent, respectively, led by metal and IT stocks. The market closed two sessions in positive out of four this week mainly on healthy global cues.

The 12-share banking index – Nifty Bank closed almost 1.5 per cent higher this week. While the broader markets outperformed the benchmark indices as the Nifty Mid and Small cap indices gained around 2.5 per cent each this week.

Heavyweights such as Coal India, ONGC, JSW Steel, Hindalco Industries and Titan were among the top gainers, whereas Adani Enterprises, Eicher Motors, Hindustan Unilever, Tata Consumer Products, and Mahindra & Mahindra were among the top losers this week.

Similarly, Mazagon Dock, Cochin Shipyard, Poly Medicure, JSW Energy, Godfrey Philips were among the top cash gainers and Godrej Consumer Products, Aavas Financiers, Suven Pharma, JM Financial and Dabur India were among the top cash losers this week.

Sectorally, Nifty Reality gained most by over 3 per cent, followed by Nifty Metal and IT by 2.88 and 2.75 per cent, respectively, outperforming the benchmark indices, whereas Nifty FMCG were the only sectoral loser, down by 1.34 per cent this week.

On Friday, Indian shares ended the session with minor cuts, with benchmark indices recovering from the day's lows. The benchmark 30-share BSE Sensex recovered 300 from the day's low of 57,851, to close at 58,191, while the broader 50-share NSE Nifty settled above the crucial support zone of 17,300, recovering 100 points from the day's low of 17,216.

Titan and index heavyweight Reliance Industries batted for the bulls, while TCS, HDFC Bank, ITC dragged indices on Friday.

Global markets, especially the US, are still not offering indications for a sustained recovery so volatility is here to stay, and participants should plan overnight positions accordingly, Ajit Mishra, VP - Research, Religare Broking said in his post market comment.

Meanwhile, on the index front, the tone would remain positive till the Nifty holds 17,100, the analyst at Religare Broking added.

Mishra feels the prudent approach is to focus on top-performing stocks from across sectors and use intermediate dips to add them instead of chasing laggards, in hope of a rebound.