Week Ahead: Macro data, FII mood, global cues among key market triggers as Nifty 50 eyes 22,150+ this week
Nifty and Sensex gained over a per cent each to settle at 22,040.70 and 72,426.64 levels respectively as investors shift their focus to fundamentals and macroeconomic indicators. The frontline indices remained resilient in the face of fading expectations of early rate cuts by the US Federal Reserve. Most sectors traded in sync with the move wherein auto, IT, energy and banking were among the top performers.
The BSE Midcap index closed almost a per cent higher. The BSE Smallcap index underperformed and closed flat for this week. The broader indices oscillated sharply on both sides and eventually settled mixed.
Overall, the broader, more domestically-focused small-caps of benchmarks fell 0.5 per cent and mid-caps added 0.5 per cent, underperforming the benchmarks, amid valuation concerns. Also Read: FPIs offload ₹29,520 crore in Indian equities as sell-off continues in February: What's behind this trend? ‘’The Indian auto sector had a strong week, lifted by anticipated high demand and a favourable earnings outlook. PSU Banks, benefiting from improved asset quality and the government’s focus on fiscal prudence, are attracting investors.
Large caps gained traction, with mid and small caps seeing profit booking, driven by valuation gaps,'' said Vinod Nair, Head of Research, Geojit Financial Services. ‘’Looking ahead, a correction in PSU banks seems likely due to higher valuation risks. Meanwhile, sectors such as metals, FMCG, and capital goods are anticipated to gain momentum driven by robust construction demand, an order backlog, rural revival prospects, and India's narrowing trade deficit.
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