Limited Market Gains Amidst India-Pakistan Tensions; IT Index Up 6.6%. Waaree Energies and HCL Tech Top Gainers. Investor Wealth Down by ₹9 Lakh Crore.
Stock Market Wrap-Up: This week (April 21-25), domestic stock markets witnessed a slight decline primarily due to escalating tensions between India and Pakistan following a terrorist attack in Pahalgam, Jammu and Kashmir. This tension impacted the Nifty-50 and Sensex on Friday, limiting their weekly gains.
Market Situation
The National Stock Exchange's Nifty-50 closed 0.86% down at 24,039.35 on Friday, while the BSE Sensex ended 0.74% lower at 79,212.53. However, both major indices registered an approximate 0.8% increase for the week.
Strong Performance by the IT Index
The IT index was the top-performing sector this week, recording a 6.6% increase. This surge is attributed to improved earnings outlooks for software companies and expectations of easing trade tensions. This marked the best week since June 7, 2024.
Decline in Small-Cap and Mid-Cap Stocks
Small-cap and mid-cap stocks experienced a decline of approximately 2.5% this week. Investors adopted a cautious approach, avoiding risk due to the attack in Kashmir and geopolitical tensions.
Strong Performance by Waaree Energies and HCL Tech
Waaree Energies was the top gainer this week, with its share price rising by 15.22%. Additionally, HCL Technologies shares saw a surge of approximately 10%.
Decline in Investor Wealth
Despite this week's market gains, investor wealth decreased by ₹9 lakh crore. The total market capitalization of BSE-listed companies stood at ₹4,21,58,900.91 crore on Friday, compared to ₹43,042,123.19 crore the previous Friday. This represents a weekly decline of ₹883,223 crore in investor wealth.
Key Market Trigger Points This Week
The market's gains this week were primarily driven by a surge in major banking stocks, which hold significant weight in the index. Furthermore, slight buying by Foreign Institutional Investors (FIIs) provided support. However, foreign investors were net sellers this week.
Moreover, the BSE IT index's rise of over 6%, led by HCL Technologies, also boosted the market.
