Market wrap: Indian stocks end week higher as global cues remain positive

Indian stocks ended the week on a positive note as global cues continued to remain positive in the wake of the COVID-19 pandemic. The week saw the benchmark indices Nifty and Sensex gaining over 1% each, as investors remained optimistic about the global economic recovery.

The global market sentiment was upbeat amid hopes of a swift economic recovery. Governments across the world continued to roll out stimulus measures to support economies battered by the pandemic. The US Federal Reserve’s announcement of an unchanged interest rate also helped to boost market sentiment.

Indian stock markets also received a boost from better-than-expected economic data. India’s industrial production for December 2020 surged by 1% as compared to the same period last year, while manufacturing production grew by 1.6%, signaling a gradual recovery in the country’s economic activity.

The week also saw foreign institutional investors (FIIs) net buying in Indian equities. FIIs bought shares worth Rs 6,354.15 crore while domestic institutional investors (DIIs) sold shares worth Rs 5,305.90 crore.

Sector-wise, Metal, IT, and Pharma stocks emerged as top performers, while Banking and FMCG sectors remained subdued.

Tata Steel was among the top gainers among Nifty 50 stocks, gaining 7.2% during the week, while Wipro gained 7.1% following its strong Q3 results. Pharma giant Dr. Reddy’s Laboratories also rose by 7.1% buoyed by the emergency use authorization given to Sputnik V vaccine.

The week also saw some major IPOs hitting the market, with Indigo Paints and Home First Finance garnering strong investor demand. Indigo Paints soared 113% on its listing day, while Home First Finance gained 19%.

Looking ahead, market experts believe that the Indian markets are likely to remain positive amid ongoing global developments. The focus will now be on the upcoming Union Budget 2021, which is expected to provide a roadmap for economic recovery amid the pandemic.

In conclusion, Indian stock markets ended the week on a positive note, driven by positive global cues and better-than-expected economic data. The benchmark indices Nifty and Sensex are expected to continue their upward trend in the coming days, as investors remain optimistic about the global economic recovery.