Rangebound Trade, Volatility Likely In Markets As Year Comes To A Close: Analysts

Domestic stock markets ended the holiday-truncated week nearly unchanged on Thursday, but the S&P BSE Sensex index registered a record closing high. The 30-scrip index ended 529.36 points, or 1.14 per cent, higher at a record 46,973.54 on Friday, whereas the broader NSE Nifty 50 benchmark climbed up 148.15 points, or 1.09 per cent, to settle at 13,749.25, 11.3 points shy of a record high of 13,760.55 last week. 

Both indices ended the week on a flat note. The Sensex added 12.85 points, or 0.03 per cent, but the Nifty declined 11.30 points, or 0.08 per cent, for the week. That followed seven weekly gains in a row.

IT and pharmaceutical shares continued to rise, with the sectoral gauges on the NSE up 3.23 per cent and 1.15 per cent respectively. Cipla, Wipro, Infosys and Sun Pharma, rising 3.11-5.19 per cent each, were the top gainers in the Nifty basket of 50 shares. 

On the other hand, the Nifty Bank and PSU Bank indices dropped 1.02 per cent and 3.50 per cent respectively. ONGC, IndusInd Bank, Hindalco and Bharat Petroleum, declining between 4.20 per cent and 6.11 per cent, were the worst hit among 32 laggards in the index. 

Analysts say some correction cannot be ruled out in the near term, as foreign institutional investors halt fund infusion into Indian capital markets during holidays.

Foreign institutional investors (FIIs) have fuelled the recent rally in the domestic markets, having net invested ₹ 62,648 crore into Indian capital markets so far this year, including ₹ 56,643 crore in equities alone, according to NSDL data.

With this, December is on track to become a third straight month of net inflows into the capital markets.