top sectoral performers: These 5 sectors rocked on Dalal Street last week; will the bull run sustain?

The week that went by saw bulls having an early Christmas party on Dalal Street, as benchmarks Nifty50 and Sensex clocked their best weekly gains since mid-November.

The Sensex rallied more than 1,600 points or 2.4% last week and ended at a record closing high of 71483.75 points on Friday.

While the gains were broad-based in the market, information technology, metals, infrastructure, and realty topped the list.

The S&P BSE IT index clocked nearly 7% gains last week, led by HCL Technologies, which gained more than 9% and Infosys that added 6% gains. Wipro, Tata Consultancy Services, Persistent Systems, LTIMindtree, and L&T Technology Services added 6-12% weekly gains.

The strong run in the technology stocks came following a dovish outlook offered by the US Federal Reserve on interest rates. The central bank guided for 75 basis points of interest rate cuts in 2024. This drove the risk-on sentiment and pushed IT stocks higher.

The dovish outlook by the Fed also boosted sentiment for the metal pack which became the second best performing sectors last week. The S&P BSE Metal index gained 4.5% last week and also hit its lifetime high on Friday.Stocks across ferrous and non-ferrous segments rallied, with Steel Authority of India logging 14% weekly gains, while Hindalco Industries notched 7% gains. JSW Steel, Tata Steel, Steel Authority of India, and Vedanta gained more than 3-6% last week.Meanwhile, strong domestic macro indicators continued to drive stocks in the infrastructure and real estate sectors higher. The S&P BSE Infrastructure and Realty indices gained 3.5% each last week.

In the realty pack, Oberoi Realty, Godrej Properties, Phoenix Mills, and DLF clocked over 2-8% weekly gains.

Among the BSE India Infrastructure index, Indian Railway Finance Corporation was the top gainer, rallying 24% last week. Meanwhile, GMR Airports surged over 12% on overRs 1,600 crore investment by GQG Partners.

Will the bull run sustain?

After the stellar show last week and, infact, in December, analysts do see chances of some consolidation. However, they have held their bullish view on the market.

“All indications are in the favor of ongoing trend continuing, and we expect the Nifty to inch towards 22,150 levels,” said Ajit Mishra, SVP – technical research, Religare Broking, recommending traders to continue with the “buy on dips” approach.

A sharp up move in the IT and some of the banking heavyweights has strengthened the favorable view, while others are also contributing on a rotational basis.

However, Mishra recommends traders to stay selective in midcap and smallcap space.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)