Weekly market wrap: Sensex extends rally for 2nd week, climbs over 2,300 points

Bulls extended their gains for the second straight week tracking strong global cues linked to a US Fed rate hike and pullback in crude oil prices. The 30-share benchmark BSE Sensex advanced 4.16 per cent, or 2,314 points to 57,863.93 for the week ended March 17. Likewise, the 50-share Nifty index settled 3.95 per cent higher at 17,287 during the same period. The domestic equity market will remain shut on Friday on account of the Holi festival.

As many as 45 stocks in the Nifty ended settled the week in green with Titan Company gaining the most 8.40 per cent. It was followed by Maruti Suzuki (up 8.31 per cent), HDFC (up 8.31 per cent), Mahindra & Mahindra (8.11 per cent), Tata Consumer Products (up 7.80 per cent) and Shree Cement (up 7.57 per cent). On the other hand, ONGC (down 3.07 per cent), Coal India (down 2.86 per cent), Hindalco (down 2.09 per cent) and Indian Oil Corporation (down 1.90 per cent) settled the week in the red.

Market watchers believe that value buying at the home front after the US Federal Reserve's policy decision offered no surprises, while the promise of stimulus in China and optimism around peace talks in Ukraine also aided sentiment.

Independent technical analyst Manish Shah said, "Nifty closed the week with a bang as markets have moved on after a historic Fed hike. Nifty respected the bullish Engulfing pattern that was formed in the previous week. Further, all green candles at have closed at the highs have kayoed the bears out of the game. On the weekly scale, Nifty is moving towards the top of the falling channel which is showing a projected target of 17,500 and above that to 18,100."

Sectorwise, the BSE Auto index gained 5.81 per cent. The BSE Consumer Durables, Bankex, Realty, Telecom and FMCG gained between 2 per cent and 5.70 per cent. With a fall of 0.47 per cent, the BSE Metal index stood lone loser.

With no major economic announcement, oil prices, FII fund activity, and the rupee's movement will also guide the sentiment in the forthcoming week.

Traders will be eyeing the data of Deposit Growth and Foreign Exchange Reserves, to be released on March 25. The value of deposits in India increased 9.3 per cent year-on-year in the fortnight ending January 14, 2022 and Foreign Exchange Reserves in India increased to $6,31,920 million in March 4 from $6,31,530 million in the previous week.

Yesha Shah, head of equity research, Samco Securities said, "Considering that no major domestic event is lined up, Indian markets will be guided by their global counterparts in the coming week. The situation in Russia-Ukraine will be closely watched. Because crude plays such a pivotal role in determining the fate of Indian macros, crude price movements will also be meticulously monitored. Furthermore, with increased allocations to ELSS funds as the end of the fiscal year approaches, DII's buying momentum is likely to continue."

"In the absence of a positive trigger, market movements are expected to remain range-bound, and investors should continue to invest in selective, fundamentally resilient stocks," Shah added.

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