Sensex posts biggest weekly gain in 4 months

Global equity markets were steady today with US futures gaining and Asian shares rallying after two days of losses. Though hospitalisation rate and deaths are relatively lower, India reported more than l lakh covid today. 

“Nifty logged the best week in four months rising 2.6%. Nifty on daily charts however has formed a long legged doji with slightly upward bias. Volume pickup and positive advance decline ratio portend well for the near term. 17944-17655 could be the range for the Nifty in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

The Nifty Bank closed 0.67% higher, notching its sixth session of gains in the last seven. Asian Paints was the top gainer in the Sensex pack, rising 1.79 per cent, followed by TCS, Nestle India, Ultratech Cement, ICICI Bank and Reliance Industries.

Meanwhile, the broader indices, BSE midcap and smallcap indices, managed to inch higher and gained in the range of 0.4-0.6%.

“Markets are likely to consolidate further after the recent surge and it would be healthy. Meanwhile, volatility is likely to remain high, citing mixed global cues and COVID-related updates. Besides, upcoming macroeconomic data (IIP, CPI, and WPI) and the beginning of the earnings season could further add to the choppiness. We recommend continuing with a positive yet cautious approach and preferring hedged positions,” said Ajit Mishra, VP – Research, Religare Broking.

Reliance Industries gained 0.8% amid the surge in oil prices and after its retail arm invested $200 million for a stake in online delivery platform Dunzo to get a foothold into the rapidly growing market of superfast dispatch of goods. Oil prices jumped as escalating unrest in Kazakhstan stoked worries that crude supply from the OPEC+ producer group could be disrupted.

Elsewhere, business process management company Hinduja Global Solutions sank 20% after a special dividend announced by it missed expectations. (With Agency Inputs)