In a week where the Sensex and Nifty saw their biggest single-day drop in four years, the markets are back at new highs. The ₹30 lakh crore market cap erosion on Tuesday, has been recovered in entirety in just the last three trading sessions.
The Sensex made a new record high of 76,738 on Friday, while the Nifty came within 20 points of its own record high of 23,338. Close to ₹8 lakh crore in investor wealth was added in Friday's trading sessions.
Both benchmark indices have seen a steady and sharp recovery from the lows of Tuesday, which at one point felt like the Nifty would even break below the 21,000 mark.
48 out of the 50 Nifty constituents contributed to the gains on Friday. The Sensex and Nifty had declined the most since May 2020 on Tuesday after the Lok Sabha election results threw up a simple majority for the National Democratic Alliance but not for the ruling Bharatiya Janta Party (BJP) on a standalone basis. PSUs were the worst affected on Tuesday with high-flying outperformers like REC and PFC declining over 20%.
For the week, the Sensex surged 3.8%, while the Nifty added 3.4% to its tally. Gains were dominated by Auto, IT and FMCG stocks. 38 out of the 50 Nifty constituents ended with weekly gains.
Among the losers for the week included stocks like the Adani Twins - Enterprises and Ports, which, despite recovering a majority of their losses, fell 5% and 4% each for the week respectively. BPCL, Coal India and L&T were some of the other losers, also declining between 2% and 4%.
The broader markets also turned positive after a sharper decline on Tuesday. The Nifty Midcap index closed with gains of 3% for the week, while the Smallcap index also ended higher by a similar quantum on a weekly basis.
Among the top losers within the broader market included PSU stocks, which, despite recovering some of their losses, ended with a significant dent in their weekly tally.
Only three out of the 20 constituents of the Nifty PSE index ended with gains for the week. GAIL (Up 4%), Indian Oil (Up 1.1%) and NTPC (Up 0.6%) were the ones in the green for the week. The PSE index also ended the week with losses of 2%
"It has been a trader's delight. From what we have seen after a fall that we witnessed during the week, there is a good comeback. I think it's a matter of time, the momentum and the participation that we are seeing from all the sectors, I think we are ready to go on a further new high. So, Nifty also, I would say, yes, 23,350 will be the next target resistance for now and 22,800 is the support," said Vaishali Parekh of Prabhudas Lilladher.
The Sensex made a new record high of 76,738 on Friday, while the Nifty came within 20 points of its own record high of 23,338. Close to ₹8 lakh crore in investor wealth was added in Friday's trading sessions.
Both benchmark indices have seen a steady and sharp recovery from the lows of Tuesday, which at one point felt like the Nifty would even break below the 21,000 mark.
| Day | High | Low | Close |
| June 3 | 23,338 | 23,062 | 23,263 |
| June 4 | 23,179 | 21,281 | 21,884 |
| June 5 | 22,670 | 21,791 | 22,620 |
| June 6 | 22,908 | 22,653 | 22,821 |
| June 7 | 23,318 | 22,790 | 23,290 |
48 out of the 50 Nifty constituents contributed to the gains on Friday. The Sensex and Nifty had declined the most since May 2020 on Tuesday after the Lok Sabha election results threw up a simple majority for the National Democratic Alliance but not for the ruling Bharatiya Janta Party (BJP) on a standalone basis. PSUs were the worst affected on Tuesday with high-flying outperformers like REC and PFC declining over 20%.
For the week, the Sensex surged 3.8%, while the Nifty added 3.4% to its tally. Gains were dominated by Auto, IT and FMCG stocks. 38 out of the 50 Nifty constituents ended with weekly gains.
Among the losers for the week included stocks like the Adani Twins - Enterprises and Ports, which, despite recovering a majority of their losses, fell 5% and 4% each for the week respectively. BPCL, Coal India and L&T were some of the other losers, also declining between 2% and 4%.
The broader markets also turned positive after a sharper decline on Tuesday. The Nifty Midcap index closed with gains of 3% for the week, while the Smallcap index also ended higher by a similar quantum on a weekly basis.
Among the top losers within the broader market included PSU stocks, which, despite recovering some of their losses, ended with a significant dent in their weekly tally.
Only three out of the 20 constituents of the Nifty PSE index ended with gains for the week. GAIL (Up 4%), Indian Oil (Up 1.1%) and NTPC (Up 0.6%) were the ones in the green for the week. The PSE index also ended the week with losses of 2%
"It has been a trader's delight. From what we have seen after a fall that we witnessed during the week, there is a good comeback. I think it's a matter of time, the momentum and the participation that we are seeing from all the sectors, I think we are ready to go on a further new high. So, Nifty also, I would say, yes, 23,350 will be the next target resistance for now and 22,800 is the support," said Vaishali Parekh of Prabhudas Lilladher.
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