Stock Market Weekly Recap: SENSEX and NIFTY End 7-Week Decline with Stellar Friday Rally

SENSEX and NIFTY delivered a powerful rebound on Friday, November 22, 2024, marking the end of a seven-week losing streak. Fueled by strong U.S. jobs data and gains in Asian markets, the indices soared by over 2%, making it their best single-day performance since June 7, 2024. Here’s a detailed recap of the market movements and key highlights of the week.


Weekly Market Performance Overview

Despite a rocky start to the week, the markets managed to recover strongly on Friday, aided by a rally in banking, oil, IT, and select Adani Group shares. Here’s a snapshot:

  • SENSEX: Surged 2,060 points intraday, closing at 79,117.11 (+2.54%).
  • NIFTY: Gained 606 points intraday, settling at 23,907.25 (+2.39%).

This robust performance helped the indices recover nearly 2% for the week, breaking a seven-week streak of losses.


Factors Driving Market Movements

Early Week Decline

  • On Monday, NIFTY fell below 23,500, and SENSEX dipped for the fourth consecutive day. IT and pharma sectors saw losses, while metal and FMCG stocks provided some cushion.
  • Escalating geopolitical tensions, including Russia-Ukraine conflicts, and allegations against Adani Group weighed heavily on the markets.

Mid-Week Volatility

  • Markets showed brief recovery on Tuesday as domestic investors capitalized on lower prices, supported by global cues. However, persistent foreign institutional investor (FII) selling and weak Q2 corporate results dragged indices down by the session’s close.

Adani Group Setback

  • Shares of Adani Group companies plunged on Thursday following allegations of bribery and fraud by the U.S. Department of Justice.
  • Adani Enterprises fell 23%, with the group’s overall market valuation dropping by ₹2.3 lakh crore in a single day.

Friday’s Dramatic Rebound

  • Strong U.S. jobs data and a rally in Asian stocks fueled Friday’s recovery.
  • Banking, oil, IT, and a rebound in Adani stocks contributed to the best single-day gains since June 2024.

Sectoral and Stock-Specific Highlights

Weekly Gainers

  • Mahindra & Mahindra (+2.61%), Power Grid (+3.39%), UltraTech Cement (+3.84%), and Hero MotoCorp (+0.55%) led the rally.

Major Losers

  • Adani Energy Solutions (-20%), Adani Green Energy (-19.8%), and Adani Ports (-22.79%) faced sharp declines due to fraud allegations.

Broader Market Performance

  • Midcap indices advanced by 2%, while smallcap indices rose 1%.
  • Among sectoral indices, NIFTY Realty gained 6%, while Auto, IT, FMCG, and Financial Services saw 2% growth each. Media and Oil & Gas underperformed.

Other Notable Stock Movements

Mamaearth (Honasa Consumer)

  • Shares plunged 37% this week due to weak Q2 results, declining 20% on Monday alone.

Paytm

  • Paytm shares gained 20% this week, nearing their 52-week high after strong market performance.

Waaree Energies

  • Shares dropped 13% over three days after the company reported a sequential decline in net profit for Q2 FY25.

What Lies Ahead?

Next week, market sentiment will likely be influenced by:

  1. Maharashtra Assembly Elections Results: The outcomes may impact Monday’s trading.
  2. Geopolitical Developments: Ongoing tensions in Russia and Ukraine could affect global market trends.
  3. Sector-Specific Performance: Investors are expected to closely monitor movements in sectors like IT, banking, and real estate.

Conclusion

This week, SENSEX and NIFTY showcased resilience by ending their seven-week losing streak with a dramatic Friday rally. While market sentiment was dented by geopolitical tensions and corporate setbacks, the late-week recovery offered hope for stability ahead. As we approach the next trading week, investors should keep an eye on global and domestic developments to make informed decisions.

Reference

For the original article and detailed insights, visit Upstox.

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