These 5 stocks rallied the most in a week that saw thinnest range at record highs

Unlike the past few weeks, bullishness on D-Street was not seen explicitly. The price action in benchmark indices was extremely dull tracking negative cues from global markets which made domestic markets highly volatile. In the week ended on September 9 2021, the Sensex rose 175 points or 0.30% to settle at 58,305. The Nifty 50 index gained 45 points or 0.26% to settle at 17,369.

“Although Nifty looked a bit uncomfortable around 17400 throughout this week, we did not see any major weakness overall. The moment it falls by nearly a percent, the buying tends to happen immediately. As of now, clearly, bulls are having a firm grip on the market but as we have been mentioning for a week or so, they would find it a bit difficult now going ahead,” said Sameet Chavan of Angel Broking.

Broader markets

It was the third consecutive week where even the mid and smallcap participated in the rally. In fact, the broader markets outperformed the benchmark indices as the BSE MidCap index added 323 points or 1.33% to settle at 24,705. The BSE SmallCap index advanced 339 points or 1.24% to settle at 27,645.

A little analysis of the BSE 500 index reveals that 271 or 54% constituents of the index ended the week with gains. With a rally of 35.88% Dish TV was the top performer of the week as its shares closed at Rs 17.95 on September 09 compared to Rs 13.21 on September 03. Caplin Point Laboratories (up 26.14%), Future Consumer (up 19.03%), Vodafone Idea (up 15.56%) and KPR. Mill (up 15.40%) were the other stocks that rallied over 15% this week.

“Indian indices failed to maintain the momentum it witnessed during the previous week as volatility remained high due to weak global markets and the absence of any fresh domestic cues to lift the market further. However, broader markets showed resilience and outperformed the benchmark. Though the much-awaited US job data fell below market estimate, it gave relief to the market on hopes of continued economic support by the Fed,” said Vinod Nair, Head of Research at Geojit Financial Services.

Indian Railway Catering And Tourism Corporation (up 14.84%), Sundram Fasteners (up 13.00%), Adani Green Energy (up 12.39%), Future Retail (up 11.97%), Alok Industries (up 11.88%), Carborundum Universal (up 11.67%), Voltas (up 11.40%), Vakrangee (up 11.14%), Indian Energy Exchange (up 11.01%), APL Apollo Tubes (up 10.48%), UCO Bank (up 10.09%) and JSW Energy (up 10.00%) were among the other top gainers of the week.

Outlook

Market participants will look forward to global macroeconomic data, along with trends in global markets. On the macro front, the Wholesale price index (WPI) inflation for August 2021 is due on September 14.

“The inflation data for August will be a key data point that the market awaits in the coming week. Retail inflation is expected to remain high in line with the July inflation rate of 5.59% while wholesale inflation is expected to ease from the previous level of 11.16%,” Nair added.

Besides, the progress of the monsoon, the movement of the rupee against the dollar and crude oil prices, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will also be watched.

Overseas, China’s industrial production data for August will be announced on September 15. The US will announce the inflation rate for August on September 14. US Retail Sales for August will be announced on September 16. Euro Area’s industrial production data for July will be announced on 15 September 2021.

“Going ahead global cues would be actively tracked as fear of economic slowdown looms while delta variant cases continue to surge. Thus, the market might consolidate for some time on account of weak global cues. Even valuations are also moving beyond comfort zones and hence could lead to bouts of profit booking and an increase in volatility. But the overall sentiment in the domestic market remains positive, supported by improving economic data and positive earnings expectations. Good Q1FY22 earnings delivery has boosted hopes for a solid FY22 with 30%+ projected Nifty earnings growth, on the back of a strong 15% earnings growth in FY21,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.