This week witnessed a contrasting scenario in the Indian stock market. Initially, the market soared to unprecedented levels but soon experienced a downturn. Despite achieving a fresh high, the market overall fell by 1.5%. This fluctuation was primarily influenced by the performance of the banking sector following the earnings report from HDFC Bank, escalating tensions in the Middle East, and delays in the anticipated US Fed rate cut.
Detailed Market Analysis
The BSE Sensex, a key market index, dropped by 1.57% or 1,144.8 points, closing at 71,423.65. Similarly, the Nifty50 index fell by 322.75 points or 1.47%, ending the week at 21,571.80. This downturn occurred despite the market reaching new highs earlier in the week.
The BSE Large-cap Index, after hitting a new high of 8495.26 on January 16, ended the week 1.3% lower. Major losers included HDFC Bank, LTIMindtree, FSN E-Commerce Ventures (Nykaa), IndusInd Bank, and ICICI Prudential Life Insurance. In contrast, stocks like One 97 Communications (Paytm) and Life Insurance Corporation of India showed gains.
The BSE Mid-cap Index painted a more positive picture, adding 1.3% and reaching a new record of 38,544.70 on January 20. Oracle Financial Services Software and other companies like SJVN and NHPC showed significant gains. However, companies like Vedant Fashions and Zee Entertainment experienced declines.
The BSE Small-cap index, while ending the week flat, hit a fresh record high of 44,871.58 on January 15. Some stocks like Sanghi Industries and Angel One faced declines, whereas others like Rail Vikas Nigam and Ganesh Housing Corporation saw impressive gains.
Sector and Stock Highlights
In terms of market value, HDFC Bank saw the most significant loss, followed by companies like Bajaj Finance and Reliance Industries. Conversely, Bharti Airtel and Infosys were among those that added the most to their market cap.
Sector-wise, the Nifty Private Bank index lost 4%, and the Nifty Bank index shed 3.4%. In contrast, the Nifty Oil & Gas index rose by 3.5%, and the Nifty PSU Bank index increased by 3.3%.
In the backdrop of these market movements, foreign institutional investors sold equities worth Rs 22,972.66 crore, while domestic institutional investors bought equities worth Rs 10,712.73 crore.
