Mumbai: The domestic broader market ended higher for the second consecutive week despite market volatility driven by persistent foreign investor selling, mixed quarter earnings (Q2 earnings), global geopolitical uncertainty and the US Fed rate cut decision. The BSE Midcap and Smallcap indices rose 1 per cent and 0.7 per cent, respectively.
Mirroring a similar trend, Nifty Midcap 100 gained 1 per cent and the Nifty Smallcap advanced 0.7 per cent during the week. Major sectoral indices remained firm during the week despite a fall in the Sensex and Nifty50. Nifty PSU Bank index jumping 4.7 per cent, followed by Oil & Gas (3 per cent), Nifty Metals (2.5 per cent), and Nifty Energy (1.8 per cent). On the other hand, Nifty Pharma, Nifty Auto, and Private Bank indices declined by up to 1 per cent, reflecting selective profit booking across consumer segments.
Sensex and Nifty ended their four-week winning streak this week, closing marginally lower amid profit-booking and mixed global cues. NSE's Nifty and BSE's Sensex dipped 0.65 and 0.55 per cent to close at 25,722 and 83,938, respectively. Positive domestic economic data and China's approval of a small number of Indian companies' imports of rare earth magnets boosted market optimism during the first three sessions.
However, after the US Federal Reserve lowered its benchmark interest rate by 25 basis points to the 3.75–4 per cent range, sentiment became cautious. For the 28th consecutive week, domestic institutional investors (DIIs) continued to be heavy buyers, buying stocks valued at Rs 18,804.26 crore, while foreign institutional investors (FIIs) continued to sell shares valued at Rs 2,102 crore. In contrast to the strong DII buying of Rs 52,794.02 crore, FII selling decreased to Rs 2,346.89 crore on a month-over-month basis.
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