The benchmarks are on track for their second straight week of gains and could see their best week since the week ending June 30.
Asia’s stock markets dipped on Friday after an overnight drop in technology stocks in the United States over deepening Sino-U.S. tensions. [MKTS/GLOB]
“We are seeing fresh interest in Indian equities after last week’s GDP data. India is being seen as a “safe haven” amidst global uncertainly and geopolitical tensions,” said Samrat Dasgupta, CEO at Esquire Capital Investment Advisors.
India’s first-quarter GDP grew at 7.8%, the fastest in a year, and the blue-chip Nifty 50 and Sensex indexes have recovered nearly 3% from the near two-month lows hit late August.
“However, we are seeing pockets of euphoria in mid- and small-caps, exemplified by some of the excessive oversubscriptions in low-quality SME IPOs,” Dasgupta said.
The small- and mid-cap stocks extended their record run on Friday and are up 32% and 29%, respectively so far this year, outpacing the 9% gains in blue-chip indexes.
Energy companies and public sector enterprises were top gainers, rising 0.6% and 1.3%, respectively.
The indexes have risen 3.4% and 4.5%, so far this week, driven by a rally in power stocks on a sudden surge in power demand in the country.
Among individual stocks, luxury auto dealer Landmark Cars rose to an all-time high after adding Mahindra and Mahindra vehicles to its line-up.
