Mumbai: Market posted third straight weekly rise, registering impressive gains in the week despite heated geopolitical tension.
Both the Sensex and the Nifty built on last week’s surge to inch closer towards their all-time highs.
Market sentiment was also boosted after the government said India and China agreed to disengagement at Doklam area. The Benchmark Sensex closed by rising 296.17 points to close at 31,892.23, while the broader Nifty settled above the key 9,900-level.
After an extended holiday weekend, the market started on a positive note with significant gains in Monday’s session. However, news of North Korea firing a missile over Japan, shook global markets sending jitters down the investor’s minds.
Geopolitical woes played out to be a spoiler, yet again in this week.
North Korean military action came under the scanner for firing a missile on Tuesday. The Indian benchmark indices tanked over 1 per cent, reacting to this news. The fears were short lived, as the bulls looked over geopolitical issues and lifted the market back to life in the later part of the week.
Market witnessed volatility in Thursday’s session in view of the August derivative series expiry.
Economic data that was released on Thursday showed that India’s GDP has dipped to 5.7 percent, y/y, in Q1 FY2018. This is the lowest level of economic growth in about three years. The deceleration in growth is primarily attributed to the government’s demonetisation move and GST reform.
The Sensex opened higher at 31,756.87, and zoomed to 31,944.10 and a low of 31,360.81 before finishing at 31,892.23, showing a gain of 296.17 points or 0.94 per cent. It gained 678.64 points three weeks.
The NSE 50-share Nifty started the week at above the 9,900 mark and traded in the range of 9,783.75 and 9,983.45. The index closed for the week at 9,974.40, up by 117.35 points or 1.19 per cent.
All-round buying was witnessed, Realty, IPO, Metal, Oil&Gas, Auto, FMCG and Capital Goods stocks rose, followed by midcap and smallcaps.