![Sensex, Nifty log fifth straight weekly advance; HDFC Bank down 4.6% 1 bs logo](https://thespuzz.s3.ap-south-1.amazonaws.com/thespuzz/uploads/2022/08/05041910/bs-logo.jpg)
While the sharp losses in top weight HDFC Bank dragged the benchmark indices lower on Friday, they still ended the week with gains of more than 1 per cent. This was the fifth straight weekly advance for both the Sensex and the Nifty—their longest weekly winning streak this year. Previously, the indices had gained for seven straight weeks between November and December 2023. The Sensex on Friday ended at 79,997, down 53 points, or 0.1 per cent. This was despite HDFC Bank shares dropping 4.6 per cent, making a 517-point negative contribution to the index. The losses in HDFC Bank—which came after the private sector lender reported a sequential decline in loans in the June quarter—were offset by gains in Reliance Industries and SBI, which rose 2.3 per cent and 2.5 per cent, respectively.
The broader markets continued to charge higher, with the Nifty Midcap 100 and the Nifty Smallcap 100 gaining 0.83 per cent and 0.8 per cent, respectively. On a weekly basis, the midcap and the smallcap focused indices rose 2.4 per cent and 3.4 per cent, respectively.
The combined market capitalisation of all BSE-listed companies crossed Rs 450 trillion in intra-day trade, and finally settled at Rs 449.9 trillion ($5.4 trillion).
Most global markets also performed well during the week as the cooling off in US inflation data revived hopes of interest rate cuts by the US Federal Reserve at its September meeting.
“The defensive bet on large caps like IT and pharma gained momentum due to the diminishing US inflationary pressure, improvement in earnings outlook, and a resultant sharp fall in the US 10-year bond yield. The buoyancy in government spending and the green shoots in corporate earnings are now supporting the premium valuation. Return of overseas funds to the domestic market and expectation of a rate cut in September are supporting market sentiment,” said Vinod Nair, head of research, Geojit Financial Services.
IT and pharma were the best-performing sectors this week, with their respective gauges rising 4.5 per cent and 3.8 per cent.
First Published: Jul 05 2024 | 5:19 PM IST