The Indian market witnessed another remarkable week, characterised by record-breaking milestones. The positive momentum was driven by consistent buying from foreign institutional investors (FIIs), the progress of the monsoon season, and optimistic expectations regarding healthy Q1 financial results. Small-cap stocks particularly stood out, displaying impressive performance.

In the week concluding on July 7, the benchmark Sensex comprising 30 stocks advanced by 0.86%, equivalent to 561.89 points, culminating at 65,280.45. Simultaneously, the broader Nifty index climbed by 0.74%, or 142.75 points, to conclude at 19,331.80. This marked the first time the Sensex crossed the 65,000 level, and the Nifty surpassed 19,500.

Throughout the week, the Sensex achieved a new peak of 65,898.98, while the Nifty reached 19,523.60.

Vinod Nair, Head of Research at Geojit Financial Services, remarked, “Economic activities exhibited resilience, with the manufacturing PMI expanding to 57.8, signifying sustained demand and enhancing confidence in the manufacturing sector’s outlook.” The provisional business figures from banks, automobile manufacturers, and real estate firms contributed to investor confidence. Furthermore, the support provided by FIIs further strengthened the domestic market.

Global investors’ risk appetite faced a test due to increased trade tensions between the United States and China, coupled with uncertainties arising from the hawkish tone of the US Federal Reserve meeting minutes, according to market experts.

Investors worldwide anxiously await the release of domestic and US inflation data, as it will provide valuable insights into the sustainability of the ongoing market rally. Vinod Nair stated, “Considering the elevated market valuation, profit booking is noticeable as the rally approaches its upper limit.”

The BSE large-cap, mid-cap, and small-cap index recorded gains of 0.7%, 0.8%, and 1.6%, respectively.

In terms of sectors, the BSE oil & gas index witnessed a significant rise of 4.6%, while the realty and auto indices each saw a gain of 2%. Additionally, the FMCG (Fast-Moving Consumer Goods) index added 1.5%.

The BSE small-cap index surged by 1.6%, led by notable stock gains. Zee Media Corporation, HPL Electric & Power, Black Box, Genus Power Infrastructures, Olectra Greentech, Dish TV India, Sunflag Iron and Steel Company, and Action Construction Equipment experienced remarkable increases ranging from 21% to 41%.

Conversely, there were declines in the stocks of PTC Industries, TruCap Finance, Abans Holdings, IOL Chemicals and Pharmaceuticals, Surya Roshni, Parag Milk Foods, Transpek Industry, Jay Bharat Maruti, Pearl Global Industries, and Faze Three, ranging from 8% to 16%.

During the week, foreign institutional investors (FIIs) made equity purchases amounting to Rs 20,361.75 crore, while domestic institutional investors (DIIs) sold equities worth Rs 1,564.60 crore.

In June, FIIs purchased equities worth Rs 27,250.01 crore, whereas DIIs acquired equities worth Rs 4,458.23 crore.