After a decent correction, bulls came roaring back this truncated week pushing benchmark indices higher by 3 percent, the best weekly gain since May.
The action was not limited to benchmark indices as small and midcap stocks also participated equally in the holiday-shortened week. Indian market remained shut on Friday on account of a public holiday.
The S&P BSE Sensex rose 3.5 percent while the Nifty50 was up 3.3 percent in the week ended October 1. S&P BSE Midcap index and the S&P BSE Smallcap index closed with gains of about 3.3 percent each in the same period.
As many as 27 stocks that rallied 10-30 percent in just four trading sessions. These include KEC International, Delta Corp, L&T Finance Holding, Dish TV, Welspun India, PVR, and Himatsingka Seide Ltd among others .
A large part of the rally was led by global cues amid expectations of another round of stimulus from the US government. Domestic cues such as upbeat September auto sales numbers, robust GST collections as well as Unlock 5 also supported market sentiment.
“Markets posted decent gains last week, thanks to upbeat global markets and favourable local cues. Among the key factors, rising hope of a stimulus package in the US and guidelines on Unlock 5 boosted the sentiment,” Ajit Mishra, VP – Research, Religare Broking Ltd told Moneycontrol.
“Besides, the rising trend of auto sales numbers in September month for the passenger vehicles and tractor segments also cheered investors,” he said.
The action in the coming week is likely to be dominated by September quarter earnings, Supreme Court’s decision on the interest waiver. On the global front, any update on the US President’s COVID situation will also be closely monitored.
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