India's Stock Market Registers Third Consecutive Weekly Gain, Reliance Industries Surges 9.4%, Positive Impact of Foreign Investments, and Rising Expectations of US-India Trade Deal.
Stock Market Wrap up: The Indian stock market concluded another positive week on Friday, May 2nd, registering a weekly gain. This week (April 28th - May 2nd) saw the Nifty increase by 1.3% and the Sensex by 1.6%. This marks the third consecutive week of gains, primarily driven by positive expectations surrounding US-India trade relations, Reliance Industries' (RIL) stellar performance, and consistent investment in Indian equities by foreign investors.
Nifty and Sensex Performance
On a weekly basis, the Nifty closed up 1.3% and the Sensex up 1.6%. On Friday, the Nifty 50 index closed at 24,346.7, up 0.05%, while the BSE Sensex reached 80,501.99, up 0.32%. While both indices opened with a sharp increase of around 1%, some gains were relinquished by the end of the day.
Key Trigger Points This Week
1. Expectations of a US-India Trade Agreement: News of a potential trade agreement between the US and India boosted investor confidence. Specifically, hints from US President Donald Trump regarding trade deals with India, South Korea, and Japan created a positive market sentiment.
2. Confidence from Foreign Investors: Foreign Portfolio Investors (FPIs) continued their consistent investment in the Indian stock market. This week marked 11 consecutive trading sessions of net buying by foreign investors, the longest such streak in two years. After withdrawals in April, they have returned as net buyers.
3. Reliance Industries' Outstanding Performance: Reliance Industries' shares surged by 9.4% this week. This represents its best weekly performance in nearly five years. Strong quarterly results, retail growth, the potential listing of Jio, and improved margins in the oil-to-chemicals segment are expected to further strengthen the company's performance.
Sectoral Performance and Investor Wealth
Eleven out of thirteen major sectors witnessed growth this week. However, the broader small-cap index fell by 0.6%, while mid-caps saw a modest increase of 0.3%.
Despite the weekly market growth, investor wealth saw a modest increase. The market capitalization of BSE-listed companies closed at ₹42,281,330 crore on Friday, compared to ₹42,247,389.77 crore the previous week. Thus, investor wealth increased by ₹33,941 crore this week.
