India's equity markets ended the week on a positive note, with the combined market valuation of five of the country's 10 most-valued companies rising by Rs 1.54 lakh crore, led by Tata Consultancy Services (TCS). Analysts now expect the Sensex to test the 79,000-79,200 range and the Nifty to target levels above 24,500 if key resistance zones are breached.
The broader market remained upbeat during the week, with the Sensex gaining 582.06 points (0.75 per cent) to close at 78,151.45, while the Nifty advanced 127.4 points (0.53 per cent) to end at 24,334.30. However, the broader market witnessed some profit booking after its recent rally, with both the Midcap and Smallcap indices closing marginally lower.
Among the top-10 firms by market capitalisation, Reliance Industries, ICICI Bank, State Bank of India (SBI), TCS and Bajaj Finance registered gains in their valuations, while HDFC Bank, Bharti Airtel, Life Insurance Corporation of India (LIC), Larsen & Toubro (L&T) and Hindustan Unilever saw declines.
TCS emerged as the biggest wealth creator, adding Rs 72,072.3 crore to take its market capitalisation to Rs 8,20,672.70 crore. The rally followed the IT major's 4.61 per cent year-on-year increase in June-quarter consolidated net profit to Rs 13,349 crore and its optimistic outlook that demand, impacted by the West Asia crisis, is expected to improve in the current quarter.
ICICI Bank added Rs 29,062.06 crore in market value, followed by Reliance Industries with a gain of Rs 23,884.93 crore, Bajaj Finance with Rs 21,946.5 crore, and SBI with Rs 7,338.34 crore.
On the losing side, L&T recorded the sharpest decline, with its market capitalisation falling by Rs 18,097.72 crore, followed by LIC, Bharti Airtel, HDFC Bank and Hindustan Unilever.
At the end of the week, Reliance Industries remained India's most-valued listed company, followed by HDFC Bank, Bharti Airtel, ICICI Bank, SBI, TCS, Bajaj Finance, LIC, L&T and Hindustan Unilever.
Sensex, Nifty outlook
Analysts expect the Indian equity markets to remain focused on key technical levels in the coming week.
According to market experts, the Sensex faces immediate resistance in the 78,400-78,600 zone. A sustained move above this range could strengthen bullish momentum and pave the way for a rally towards 79,000-79,200.
On the downside, 77,600-77,300 is expected to provide immediate support, followed by the key 77,000 level. A decisive break below 77,000 could trigger fresh profit booking and drag the index towards 76,700-76,500.
For the Nifty, analysts said the index has once again approached the crucial 24,400-24,500 resistance zone, which coincides with a major horizontal supply area and the 100-week moving average near 24,490.
A breakout above this level could extend the recovery towards 24,700-24,800, while immediate support is seen at 24,000, followed by 23,800.
