Market post solid gains in Budget week; PSU banks outperform

In the volatile Budget week, the Indian equity market posted biggest weekly gains in two months, with benchmarks rising 2 percent each with Nifty hitting fresh all-time high amid in line Interim Budget & FOMC meet outcome, positive global cues and Q3 earnings from India Inc.

For the week, Nifty gained 501.2 points or 2.34 percent to finish at 21,853.80, while BSE Sensex added 1,384.96 or 2 percent to close at 72,085.63.

The BSE Small-cap index added 3.3 percent in this week, to hit fresh high of 46,169.7 on February 2. NBCC (India), Shakti Pumps (India), Punjab & Sind Bank, KPI Green Energy, Hemisphere Properties India, Infibeam Avenues, IRB Infrastructure Developers and India Tourism Development Corporation added 31-47 percent. On the other hand, Ramky Infrastructure, Oriental Carbon and Chemicals, ZF Commercial Vehicle Control Systems India, Craftsman Automation and Rane Madras shed 10-12 percent.

BSE Mid-cap Index rose 3 percent and touched fresh high of 39,140.16 led by UCO Bank, Indian Overseas Bank, SJVN, NHPC, Indian Bank, Delhivery and Bank Of India, while losers were Vedant Fashions, AU Small Finance Bank, Tube Investments of India and Aurobindo Pharma.

The BSE Large-cap Index erased previous week losses and gained 2.4 percent to hit new high of 8,516.13. Top gainers included Punjab National Bank, Bharat Petroleum Corporation, Indian Oil Corporation, Power Grid Corporation of India, Bank Of Baroda and Adani Ports and Special Economic Zone. However, losers were One 97 Communications (Paytm), Cholamandalam Investment and Finance Company, SBI Cards & Payment Services and Larsen & Toubro.

In terms of the market value, Reliance Industries added the most in terms of market value, followed by Tata Consultancy Services, State Bank of India and Power Grid Corporation of India. On the other hand, Larsen & Toubro, ITC and Bajaj Finance lost the most of their market-cap. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

On the sectoral front, Nifty PSU Bank index surged 11.5 percent, Nifty Oil & gas index rose 9 percent, Nifty Energy index gained 8 percent and Nifty Metal, Auto and Realty indices up 4 percent each.

Domestic institutional investors (DIIs) continued their support to the market as they bought equities worth Rs 10,102.62 crore during the week. On the other hand, Foreign institutional investors (FIIs) also shrink their selling as they sold equities only worth of Rs 2,008.68 crore. In the month of January, the FIIs sold equities worth Rs 35,977.87 crore and DIIs bought equities worth Rs 26,743.63 crore.

In this week, the Indian rupee gained against the US dollar. The domestic unit added 19 paise to end at 82.92 in the week ended February 2 against the January 25 closing of 83.11.