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Indices of most major sectors traded in the positive territory, but defence and metal led the relief rally, growing 10.5% and 9% respectively
| Photo Credit: Reuters
Logging its best week in three months, Nifty’s weekly returns edged up 1.93%, while closing at 22,552 points on Friday.
“During the week, the Nifty/Sensex slipped below the crucial level of 22,000/72,800. However, it bounced back sharply. Technically, it has formed a reversal formation on both daily and weekly charts, supporting a further uptrend from the current levels,” said Amol Athawale, VP, Technical Research, Kotak Securities.
Indices of most major sectors traded in the positive territory, but defence and metal led the relief rally, growing 10.5% and 9% respectively, he added.
The week began on a flat note after a nearly 3% decline, only to rally 1.2% on Wednesday supporting the relief in the rest of the week’s trading sessions. The BSE Sensex also rallied 1.55%, closing at 74,333 on Friday. Optimism about Indian economy and global factors may have contributed to this increase, said equity researchers.
“Most of the stocks were highly oversold. They had capitulation and many of the stocks below the ₹10,000 crore market capitalisation have rebounded 20-30% over the last one week as they offered attractive value to long-term investors,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Better PMI numbers, higher expected fourth quarter GDP, and RBI’s liquidity boost may be other macroeconomic reasons that may have contributed to this rally, he said, adding that this was expected to continue, even as he maintained that downside risk from the uncertainty over U.S. tariff action continued.
Published – March 07, 2025 10:28 pm IST
