Weekly Market Wrap: Sensex and Nifty Show Gains as IT Sector Leads

Indian equity markets saw slight upticks during the week ending December 13, indicating a retreat from the recent consolidation phase. The Nifty index rose by 0.37%, closing at 24,768.3. Meanwhile, the BSE Sensex, which tracks 30 of the largest companies listed on the stock exchange, increased by 0.52%, finishing at 82,133.12. Investor sentiment improved significantly after the release of November’s retail inflation data, which fell within the Reserve Bank of India's (RBI) acceptable range.

Moreover, the growth in the Index of Industrial Production (IIP) also played a crucial role in encouraging investors to engage in selective value buying, leading to a stronger market performance.

Vinod Nair, the Head of Research at Geojit Financial Services, shared insights regarding the market outlook, stating, "The current market optimism stems from expectations of a revival in consumer spending, particularly due to the festive season and year-end holidays. Additionally, growing anticipation of increased consumer spending in the U.S. is positively impacting the Information Technology (IT) sector."

Top Nifty Gainers and Losers

The Nifty50 index displayed varied performance among its constituents. Bharti Airtel emerged as the top performer of the week, surging by over 5%. It was followed by Bajaj Finance, which saw an increase of nearly 5%, and Wipro with a rise of over 4%. Other notable gainers included Infosys, which rose by 4%, and HCL Technologies, which increased by almost 3%.

On the other hand, notable laggards in the Nifty included Tata Consumer Products, which fell by over 4%, along with Hindustan Unilever and NTPC, both experiencing drops of around 4% and 3%, respectively. Tata Motors and Axis Bank also saw declines of over 3%.

Sectoral Performance: IT Leads the Way

Focusing on sectoral performance, the Nifty IT index was the standout gainer for the week, climbing nearly 3%. This boost came after the index reached an all-time high on two consecutive days, driven by the favorable U.S. inflation data that bolstered expectations for a rate cut by the Federal Reserve in the upcoming week.

Additionally, the Realty and Metal sectors also reported gains. Contrarily, Nifty Media turned out to be the worst-performing sector, plummeting by 6%. Other sectors that recorded losses included PSU Banks, Energy, Fast-Moving Consumer Goods (FMCG), and Pharmaceuticals.

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