Sensex and Nifty Set New Records Amid Strong Momentum in Smallcap Stocks

Market Overview

This week, the BSE Sensex rose 1,707.01 points, or 2.10 percent, to close at 82,890.94, while the Nifty50 index gained 504.35 points, or 2.02 percent, finishing at 25,356.50. Both indices hit record highs on September 12, with the Nifty50 reaching 25,433.35 and BSE Sensex at 83,116.19.

Broader Indices Performance

Among the broader indices this week, the BSE Smallcap index rose 2 percent, the Largecap index nearly 2 percent, and the Midcap index jumped 1.5 percent. Sector-wise, although Oil & Gas saw a decline of 2.6 percent, all other sectoral indices ended positively.

• Nifty FMCG, Nifty Information Technology, and Nifty Media indices each gained nearly 3 percent.

Investor Activity

Foreign Institutional Investors (FIIs) purchased equities worth Rs 15,199.6 crore, while Domestic Institutional Investors (DIIs) bought equities totaling Rs 2,444.19 crore. This month's cumulative FII purchases stand at Rs 16,600.88 crore, with DIIs reaching Rs 7,990.18 crore.

Market Sentiment

Despite previous weeks' negative sentiments due to macroeconomic data and recession fears, investor sentiment turned positive due to expectations of a strong festive season. Vinod Nair from Geojit Financial Services expressed optimism driven by a strong monsoon and global rate cut expectations.

• Upcoming FOMC meeting is anticipated to influence markets further.

Stock Performers

On the BSE Smallcap index, notable gainers included Hardwyn India, Panacea Biotec, Sadhana Nitrochem, and others, all rising between 20-30%. Conversely, companies like Abans Holdings and Granules India experienced declines of 7-21%.

Market Outlook

Experts suggest that while the short-term market is positive, there could be *temporary overbought conditions*. Key support zones are between 25,225-25,000 and 82,500-82,000, while crucial resistance areas are 25,500-25,700 and 83,500-84,000.