Markets this week: Sensex climbs 0.9 per cent; Tech Mahindra top Nifty gainer

Indian equities amid recovery in global equities and positive macro data back home ended the holiday-shortened week on a positive note. Nifty and Sensex ended the week with gains of 0.71 per cent and 0.9 per cent, respectively. At the close, Nifty ended with significant gains of 1.65 per cent at 24,541.15, while the Sensex gained over 1,300 points or 1.68 per cent and settled at 80,436.84 for the week.

Prashanth Tapse, Senior VP (Research), Mehta Equities said, “Positive US economic data like cooling inflation and robust retail sales numbers shrugged off recession fears while talks of a rate cut by the US Fed as early as next month fuelled a mega rally across global equities, including India. While local markets remained in positive territory throughout the session, buying opportunities emerged for local investors after the recent slump with banking, IT, auto, metal and realty stocks leading the upsurge.”

Both the benchmark indices recorded their highest close since August 2 led by gains in IT, Realty and banking stocks.

Top gainers in the Nifty 50 pack in the week to August 16

Tech Mahindra - 8 per cent 

HCL Technologies- 7.1 per cent

Infosys- 6.6 per cent

Wipro- 5.9 per cent

M&M- 5.9 per cent

Markets outlook next week

Vinod Nair, Head of Research, Geojit Financial Services stated that the Q1FY25 results are concluded, which is largely in line with expectations with single-digit PAT growth. However, the weak performance by oil and cement companies may cause a cut in the FY25 Nifty EPS estimate.

In the week ahead, the market will keenly watch the FED chair speech in Jackson Hole and FOMC minutes; an ease in economic slowdown may influence the Chair to add more light on the rates trajectory.  The sentiment improvements in Yen carry trade is likely to reduce the market volatility in the near term. However, investors are advised to remain cautious in the short to medium term. The focus will be on value stocks in sectors like FMCG, IT, pharma, and telecom, he added.