Sensex, Nifty extend gains for third straight week ahead of CPI data

Indian stocks reversed their losses during the day and extended their winning streak for the third consecutive week on Friday, supported by stocks of financial and auto companies, ahead of local retail inflation data.

the Nifty 50 It closed up by 0.10 percent, at 18,314.80, while the S&P BSE Sensex It rose 0.20 percent, to 62,027.90. Both benchmarks posted weekly gains of more than 1 percent.

Seven of the 13 major sectoral indices advanced, with the heavyweight financial indices rising by more than 0.5 percent.

The auto sector jumped by 0.77 percent, an increase of about 6 percent in the previous year Escher Motors Limited After its fourth-quarter earnings exceeded its estimates.

The metals index lost more than 1.8 percent, after data on US jobless claims and producer prices indicated a possible slowdown in the world’s largest economy. Weak macro data from China, the world’s largest metals producer and consumer, also added to concerns.

Siddhartha Kimka, head of retail research at Motilal Oswal Financial Services, advised investors to “use a buy-on-retrace strategy in the broader markets.”

“With the frontline indices resting, medium and small-cap stocks are seeing active participation,” emphasized Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher.

Also read: Economists had expected retail inflation for the month of April to be less than 5 percent

The indexes of medium and small companies rose for seven consecutive weeks. Analysts expect the main index to remain in a narrow range over the next few weeks after the recent rally.

Investors are awaiting domestic retail inflation data for April, which is scheduled to be released at 5:30 PM IST. India’s consumer price inflation probably cooled to an 18-month low of 4.80 percent in April, according to a Reuters poll of economists.

among individual stocks, Max Healthcare Institute Limited It rose more than 3 percent after Morgan Stanley Capital International (MSCI) added the stock to India’s benchmark index after a quarterly revision.

while, Adani Total Gas LimitedAnd Adani Transmission Ltd Indus Towers Ltd lost between 2 percent and 5 percent after that They are removed from the index.