New Delhi, March 22
The Indian stock markets witnessed a strong rebound this week, with benchmark indices Nifty and Sensex surging over 4 per cent -- best weekly performance in four years -- and the rally was fuelled by improving investor sentiment, improvement in foreign flows and positive global developments, experts said on Saturday.
The Nifty gained over 4 per cent, the highest weekly since February 2021. The Sensex also surged 4 per cent, the most since July 2022.
The resurgence in market sentiment was fuelled by the comeback of FIIs amid a strengthening Indian rupee. Additionally, the steep correction in many stocks over recent months created opportunities for value buying, attracting investors looking to capitalise on lower valuations.
Nifty closed at 23,350.4, while Sensex ended the week at 76,905.51 -- both near their weekly highs.
Benchmark indices rose for fifth straight session on Friday as broad-based buying propelled the market higher. Broader market extended up move as Nifty midcap and smallcap closed higher by 1.4 per cent and 2.1 per cent, respectively, according to Bajaj Broking Research.
“Several factors contributed to the sharp recovery. Easing pressure from foreign institutional investors (FIIs), marked by positive flows in both cash and derivatives segments, provided much-needed stability. Additionally, crude oil prices and the dollar index remained at lower levels after a recent decline, supporting market sentiment,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.