Market Update: Bulls Steady as Sensex and Nifty Inch Towards All-Time Highs
New Delhi: The financial markets experienced a stable week following the impressive gains of August 16, when BSE Sensex surged by over 1,300 points and Nifty by 400 points. Although no major jumps occurred this week, the indices continued their upward trajectory, setting the stage for potential new peaks in the coming days.
The BSE Sensex rose by 649.37 points, or 0.81%, closing at 81,086.21 points. Meanwhile, Nifty advanced by 282 points, or 1.15%, ending the week at 24,823.15 points. Broader indices also showed gains, with BSE 100, BSE 200, and BSE 500 climbing 1.26%, 1.31%, and 1.53%, respectively. Notably, BSE Midcap increased by 1.96%, and BSE Smallcap gained 3.39%. Throughout the week, BSE Sensex recorded gains in four out of five sessions, while Nifty saw consistent progress.
The Indian Rupee appreciated by 7 paise to Rs 83.89. In the US, the Dow Jones Industrial Average experienced a robust rally, gaining 515.32 points, or 1.27%, to close at 41,175.08 points, bolstered by a strong performance on Friday.
In the primary markets, shares of Saraswati Saree Depot Limited, listed on August 20, saw a notable debut with gains of 31.21% on the first day. However, by Friday, the share settled at Rs 180.10 on BSE, reflecting a gain of 12.56%. The IPO of Interarch Building Products Limited, which opened on August 19 and closed on August 21, was significantly oversubscribed, receiving 93.81 times overall subscription. Orient Technologies Limited, another recent IPO, also saw impressive demand, with an overall subscription rate of 154.87 times.
Upcoming market activities include two new IPOs: Premier Energies Limited and ECOS (India) Mobility and Hospitality Limited. Premier Energies, an integrated solar manufacturer, is set to open its issue on August 27, with a price band of Rs 427-450. ECOS (India), specializing in chauffeur-driven mobility services, will offer shares from August 28 to August 30 at a price band of Rs 318-334.
As the markets approach August futures expiry on August 29, expect potential volatility. With the Nifty and Sensex nearing their all-time highs, the week could see renewed attempts at setting new records. Support levels are anticipated at around 24,500 for Nifty and 80,000 for Sensex. The market’s current buoyancy, combined with abundant liquidity and ongoing IPO activity, sets the stage for an eventful week ahead.
In conclusion, while the market is poised for potential new highs, traders should remain cautious of possible corrections, similar to post-August 1 adjustments.
