top sectoral performers: These 5 sectors rocked on Dalal Street last week; will the bull run sustain?

The week that glided by noticed bulls having an early Christmas occasion on Dalal Avenue, as benchmarks Nifty50 and Sensex clocked their finest weekly features since mid-November.

The Sensex rallied greater than 1,600 factors or 2.4% final week and ended at a report closing excessive of 71483.75 factors on Friday.

Whereas the features had been broad-based out there, data know-how, metals, infrastructure, and realty topped the record.

The S&P BSE IT index clocked practically 7% features final week, led by HCL Applied sciences, which gained greater than 9% and Infosys that added 6% features. Wipro, Tata Consultancy Providers, Persistent Programs, LTIMindtree, and L&T Know-how Providers added 6-12% weekly features.

The sturdy run within the know-how shares got here following a dovish outlook supplied by the US Federal Reserve on rates of interest. The central financial institution guided for 75 foundation factors of rate of interest cuts in 2024. This drove the risk-on sentiment and pushed IT shares larger.

The dovish outlook by the Fed additionally boosted sentiment for the metallic pack which turned the second finest performing sectors final week. The S&P BSE Metallic index gained 4.5% final week and in addition hit its lifetime excessive on Friday.Shares throughout ferrous and non-ferrous segments rallied, with Metal Authority of India logging 14% weekly features, whereas Hindalco Industries notched 7% features. JSW Metal, Tata Metal, Metal Authority of India, and Vedanta gained greater than 3-6% final week.In the meantime, sturdy home macro indicators continued to drive shares within the infrastructure and actual property sectors larger. The S&P BSE Infrastructure and Realty indices gained 3.5% every final week.

Within the realty pack, Oberoi Realty, Godrej Properties, Phoenix Mills, and DLF clocked over 2-8% weekly features.

Among the many BSE India Infrastructure index, Indian Railway Finance Company was the highest gainer, rallying 24% final week. In the meantime, GMR Airports surged over 12% on overRs 1,600 crore funding by GQG Companions.

Will the bull run maintain?

After the stellar present final week and, infact, in December, analysts do see possibilities of some consolidation. Nonetheless, they’ve held their bullish view in the marketplace.

“All indications are within the favor of ongoing pattern persevering with, and we anticipate the Nifty to inch in the direction of 22,150 ranges,” stated Ajit Mishra, SVP – technical analysis, Religare Broking, recommending merchants to proceed with the “purchase on dips” strategy.

A pointy up transfer within the IT and a number of the banking heavyweights has strengthened the favorable view, whereas others are additionally contributing on a rotational foundation.

Nonetheless, Mishra recommends merchants to remain selective in midcap and smallcap area.

(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)