Indian financial markets sustained their winning streak, marking the seventh consecutive week of gains and reaching new all-time highs by the week ending December 15. The bullish momentum was fueled by a confluence of positive factors, both on the global and domestic fronts. Notable contributors to this impressive performance include the dovish stance adopted by the US Federal Reserve, robust foreign institutional investment (FII) activity, encouraging macroeconomic data, and the decision by major global central banks to maintain policy rates.

Market Highlights:

The BSE Sensex recorded a substantial gain of 2.37%, equivalent to 1,658.15 points, concluding the week at 71,483.75. Simultaneously, the Nifty50 surged by 2.32%, adding 487.3 points, closing at 21,456.70 and achieving a new milestone of 21,492.30. Both benchmarks posted a remarkable 6.5% gain over the week.

Sectoral Performance:

All sectoral indices contributed to the positive market sentiment. Notably, the Nifty Information Technology index exhibited a remarkable 7% increase, while the Nifty PSU Bank and Metal indices saw a 5% rise each. The Nifty Realty index also experienced notable growth, gaining nearly 4%.

Mid-cap and Large-cap Indices:

The BSE Mid-cap Index witnessed an extraordinary 11.5% surge, reaching a record high of 36,421.02. Key contributors to this ascent included Gujarat Fluorochemicals, Steel Authority of India, GMR Airports Infrastructure, Persistent Systems, MphasiS, Union Bank of India, Solar Industries India, and Vodafone Idea. On the other hand, the BSE Large-cap Index rose by nearly 11%, supported by leading companies such as Info Edge India, HCL Technologies, DLF, and Hindalco Industries.

Market Value Fluctuations:

In terms of market value, Tata Consultancy Services, Infosys, HCL Technologies, and State Bank of India experienced significant gains. However, Maruti Suzuki India, Nestle India, and Bharti Airtel witnessed declines in their market capitalization.

Foreign and Domestic Investments:

Foreign institutional investors (FIIs) continued their bullish stance by buying equities worth Rs 18,858.34 crore during the week, contributing to a total of Rs 29,733.06 crore in December. Domestic institutional investors (DIIs), in contrast, sold equities worth Rs 2,592.35 crore during the week.

Currency Movement:

The Indian rupee demonstrated resilience, gaining 39 paise against the USD to close at 83.00 by December 15, showcasing a recovery from its closing of 83.39 on December 8.

The cumulative impact of these factors has positioned the Indian financial markets as a robust and attractive investment landscape, reflecting both investor confidence and the underlying strength of the domestic economy.