The Sensex rose over 1,600 points (2.4%) last week and closed at a record high of 71,483.75 points on Friday.
The gains were widespread across markets, with information technology, metals, infrastructure and real estate topping the list.
The S&P BSE IT index rose nearly 7% last week, with HCL Technologies gaining over 9% and Infosys another 6%. Wipro, Tata Consultancy Services, Persistent Systems, LTIMindtree and L&T Technology Services rose 6-12 per cent in the week.
The rally in tech stocks comes after the U.S. Federal Reserve gave a dovish outlook on interest rates. The central bank has cut interest rates by 75 basis points in 2024. This increased risk-on sentiment and pushed up IT stocks.
The Fed’s dovish outlook also boosted sentiment towards the metals pack, which was the second-best performing sector last week. The S&PBSE Metals Index rose 4.5% last week and hit a new lifetime high on Friday.
Stocks in the steel and non-ferrous segments rose, with Steel Corporation of India up 14% for the week and Hindalco Industries up 7%. JSW Steel, Tata Steel, Steel Corporation of India and Vedanta rose more than 3-6% last week.
Meanwhile, stocks in the infrastructure and real estate sectors continued to rise as domestic macro indicators performed well. The S&PBSE Infrastructure Index and Real Estate Index each rose 3.5% last week.
Among real estate stocks, Oberoi Realty, Godrej Properties, Phoenix Mills and DLF recorded gains of over 2-8 per cent during the week.
Among the BSE India Infrastructure Index, Indian Railway Finance Corporation was the top gainer, rising 24% last week. Meanwhile, GMR Airport soared more than 12%.
An investment of Rs 1,600 crore by GQG Partners.
Will the bull market continue?
After a strong performance last week, and indeed in December, analysts see some potential for correction. However, they remained bullish on the market.
“All signs favor a continuation of the ongoing trend and we expect the Nifty to inch closer towards the 22,150 level,” said Ajit Mishra, SVP, Technical Research, Religare Broking. He recommended that traders continue with a “buy the push” approach.
A surge in the IT industry and some banking giants added to the positive outlook, with other companies taking turns contributing as well.
However, Mishra advises traders to be selective in the mid-cap and small-cap space.
(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)