Sensex records highest weekly gain in 6 months with 2.48% rise

MUMBAI: The benchmark equity index gained the most this week in nearly six months, recording a new high as focus turned to June quarter earnings. Relative stability in world markets also supported the local market.

BSE’S 30-share Sensex gained 2.48% this week to a record close of 36,541.63 points, the best since the week to January 19.

On Thursday, Sensex rose as much as 1.2% to a record high of 36,699.53 points. On Friday, it shed 6.78 points to close at 36,541.63.

“I think we have already seen the upside in the market. There is a skew in the market in favour of the large cap,” said Dhananjay Sinha, head of research at Emkay Global Financial Services Ltd.

While benchmark equity indices recorded new highs on Thursday, the rally is tilted in favour of a handful of stocks, and is far from being a broad-based one. The market temporarily shrugged off concerns over a global trade war, but that could weigh on the market sentiment in times to come. In the near term, the market is likely to take cues from domestic earnings, as it waits for signs of concrete recovery.

“The earnings season is seen as positive for markets, albeit on a low base and could help the market in the in the short term,” said Sinha.

Top IT firm Tata Consultancy Services Ltd (TCS) kicked off the fiscal first-quarter earnings season by reporting its fastest sequential growth in four years, as the largest banks in the United States boosted spending on technology.