Stock Market Wrap: Sensex and Nifty End Week on a High Note, Driven by Consumer Durables and Auto Sectors

May 17, 2023

New Delhi, India

Stock Market Update: Sensex and Nifty Gain Amid Strong Sectoral Performance

The Indian stock market wrapped up the week on a high note, with key indices and sectors showing notable performance.

Key Indices Performance

The BSE Sensex climbed 253 points to close at 73,917.03, marking a 0.34% increase. Similarly, the NSE Nifty advanced by 62.25 points to end at 22,466.10, up by 0.28%. This marks the second consecutive day of gains for both indices.

Sectoral Highlights

Among the various sectors, the Nifty Consumer Durables index led the way with a 2.8% increase. The Nifty Realty, Metal, and Auto indices also showed strong performances, each rising by 1.7%. Conversely, the Nifty IT index fell by 0.9%, making it the top loser. The Pharma sector also faced declines.

Individual Stock Movements

Mahindra and Mahindra (M&M) emerged as a standout performer, surging 5.83% to close at ₹2,410 following its announcement of a ₹26,000 crore investment in its automotive business over the next three years. Other top gainers included Grasim, Ultratech Cement, JSW Steel, and BPCL. Major laggards were Cipla, TCS, SBI Life, HCL Tech, and Britannia.

Market Dynamics

Despite persistent foreign outflows, sustained domestic buying helped cushion the impact. Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth ₹776 crore on May 16. On the other hand, Domestic Institutional Investors (DIIs) were net buyers, purchasing shares worth ₹2,128 crore. Provisional data showed FIIs buying ₹16,604 crore in shares and selling ₹17,380 crore, while DIIs bought ₹14,908 crore and sold ₹12,780 crore.

Weekly Performance

Both the NSE Nifty 50 and S&P BSE Sensex recorded about a 2% gain over the week, their best performance since early February. Out of the 13 major sectors, 12 logged weekly gains ranging from 0.5% to 6.6%.

Conclusion

In summary, the Indian stock market ended the week positively, with significant gains in key indices and robust sectoral performances, particularly in Consumer Durables and Auto. The market was buoyed by domestic institutional buying, which counterbalanced foreign outflows, resulting in the best weekly performance since early February.