Broader markets also rose, with the small-cap barometers outperforming mid-cap gauges
Domestic stock markets concluded a sixth consecutive week on a positive note, with the S&P BSE Sensex index rising 3 per cent in five trading sessions. The 30-scrip index climbed up 1,108.76 points to settle at 38,128.90 for the week ended July 24, whereas the broader Nifty 50 benchmark added 292.45 points (2.68 per cent) to shut shop at 11,194.15. Heavyweight Reliance Industries' record-breaking spree helped the markets continue an overall recovery that was in its 18th week.
While banking, financial services and IT sectors were the biggest winners on the NSE, pharmaceutical and consumer goods were the worst hit. The Nifty Bank index - comprising stocks of 12 major lenders int the country - climbed up 3.17 per cent for the week.
Reliance Industries, Eicher Motors and Power Grid clocked double-digit percentage gains, with the oil-to-telecom conglomerate's stock breaking a series of records during the week.
On the other hand, Hindustan Unilever, Shree Cement and Hindalco declined around 4-5 per cent each for the week ended July 24.
Top Nifty Gainers Vs Losers
| Stock | Weekly Change |
|---|---|
| Reliance Industries | 12.13% |
| Power Grid | 11.13% |
| Eicher Motors | 10.35% |
| HCL Tech | 9.41% |
| Tech Mahindra | 9.15% |
| Sun Pharma | -3.58% |
| Zee Entertainment | -3.91% |
| Hindalco | -3.99% |
| Shree Cement | -4.62% |
| Hindustan Unilever | -5.29% |
(Reliance Industries' market capitalisation climbed to Rs 13.61 lakh crore on Friday)
Broader markets also rose, with the small-cap barometers outperforming mid-cap gauges.
Going forward, the ongoing rally in the markets may come to a halt.
"The rally in the markets has continued for 18 weeks... Except certain agro-chemical companies, the earnings season has missed expectations with a lot of disappointments in mid-caps," AK Prabhakar, head of research at IDBI Capital, told NDTV.
The benchmark Nifty 50 index has risen 47.09 per cent since March 23, the day it sank to the lowest level recorded in nearly four years.
"After the recent spike in Nifty, market is expected to consolidate for a couple of days, given flaring US-China relations and persistent rise in virus cases. Thus the market volatility is likely to continue," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services.
Analysts awaited more financial results in the large-cap segment for near-term cues.
"Bank results can not be taken on face value," Mr Prabhakar said. HDFC Bank had reported its financial results last week. "And a nearly 50 per cent jump in gross non-performing assets by March is not going to be good at all," said Mr Prabhakar.
He was referring to a report by the Financial Stability and Development Council released by the Reserve Bank of India on Friday, which pegs the bad debt of the country's banks to jump sharply due to the coronavirus pandemic.
COVID-19 is likely to push up the gross non-performing assets - or bad loans - in the country's banking system to at least 12.5 per cent by March 2021, from 8.5 per cent in March 2020, according to the report.
Bajaj Finance, Hindustan Unilever, Axis Bank, Bajaj Auto and Larsen & Toubro reported their earnings for the April-June period during the week. ICICI Bank was due to report its results on Saturday.
The Nifty IT index - comprising 10 technology stocks - rose 2.76 per cent for the week. The index has outperformed the 50-share basket since late-March, with a gain of 54.62 per cent.
"IT companies' travel expenses have come down with people working from home. There is no salary hike for IT employees, so business has not been impacted much," he said, speaking on the growth in IT stocks.
