Nifty rose above 12200 levels due to positive global cues, the influx from foreign institutional investors, and strong macro-economic data in the Q2 number from Indian corporations. The S&P BSE Sensex was strong at 5.75 percent while Nifty rose above 5.3 percent for the week ended on November 6. There was a rise of 2.2 percent in the S&P BSE Smallcap index in the same period.
However, Small and Midcaps had poor performance for the week ended November 6. Moreover, as many as 33 stocks in the S&P BSE 500 index rose 10-40 percent in mere 5 trading sessions. Axis Bank, Hindalco Industries, Aarti Industries, CSB Bank, State Bank of India, Bandhan Bank, IndusInd Bank, CARE Ratings, and Bajaj Finance shares are rising in double digits.
Given the market situation due to US elections, the market across the globe is rallying on liquidity in anticipation of a stimulus package from the US government. In November, foreign institutional investors invested more than Rs. 13000 crores in the liquidity (cash) segment of the Indian equity market.
Nirali Shah, Senior Research Analyst, Samco Securities said, “Market made several gap-up openings in the week gone by imitating the US indices and political theatrics. It is the sheer liquidity and the hopes of a stimulus that is driving the bulls in high spirits. Therefore, irrespective of the outcome of the year’s US elections, markets are expected to continue their celebratory mood in equities and commodities across the globe.”