The benchmark stock market indices surged to reach a peak not witnessed in the past six weeks on a momentous Friday. This remarkable upswing was primarily underpinned by substantial gains experienced in the energy sector, marking a week that can be hailed as the most impressive performance in over two months.
To delve into the specifics, the Nifty 50 index concluded the trading session with a noteworthy gain of 0.47 percent, ultimately settling at a level of 19,819.95. Similarly, the S&P BSE Sensex exhibited a robust ascent, rising by 0.5 percent and reaching the impressive milestone of 66,599 points.
It is worth highlighting that these benchmark indices have now successfully notched their second consecutive week of gains, a feat that hasn't been witnessed since the week concluding on June 30. Both indices, Nifty 50 and Sensex, have registered substantial gains of nearly 2 percent each during this prolific week.
The resurgence of these blue-chip indices is particularly noteworthy, as they have managed to rebound impressively by approximately 3 percent from their recent nadir, which was encountered in late August. This resurgence can be partially attributed to the release of reports heralding India's remarkable first-quarter GDP growth, which stands at an impressive 7.8 percent, marking the fastest rate observed in a year.
In contrast, the performance of small and mid-cap stocks has continued to outshine the benchmark indices, with gains of 0.6 percent and 1 percent, respectively. Year-to-date, these stocks have exhibited remarkable growth, soaring by 32 percent and 30 percent, a clear indication of their outperformance compared to the modest 9 percent gains recorded by the blue-chip indexes.
The major contributors to this positive trajectory in the stock market were energy companies and public sector enterprises, which recorded substantial increases of 1.4 percent and 2.6 percent, respectively. The week, as a whole, witnessed these indices amassing gains of 3.4 percent and 4.5 percent, propelled by a robust surge in power stocks stemming from heightened power demand within the nation.
One standout performer of the week was Coal India, which experienced an astounding 19 percent leap, showcasing its resilience and growth potential.
Additionally, the banking sector witnessed an uptick in performance, a development spurred by the announcement from the country's central bank regarding its intention to discontinue the maintenance of the incremental cash reserve ratio (I-CRR) by October 7, which buoyed investor confidence.
Furthermore, railway group stocks demonstrated remarkable vitality, with an impressive surge ranging between 7 to 9 percent. This substantial rise was fueled by reports of potential deal negotiations with both Saudi Arabia and the United States, signaling exciting prospects for future collaborations and expansions in this sector.
