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As much as 10% of stocks in the BSE 500 index delivered a double-digit return to investors last week as market sentiment got a boost after Reserve Bank of India (RBI) Governor Shaktikanta Das unveiled liquidity support measures amid rising Covid-19 cases in India.

With a gain of 27%, Dish TV India emerged as the top gainer in the index. Shares of the company jumped to Rs 11.78 on May 7 from Rs 9.27 on April 30. Gateway Distriparks (up 26.80%), HFCL (up 26.44%), The Great Eastern Shipping Company (up 21.15%), EID Parry (India) (up 20.91%) and Steel Authority of India (up 20.76%) stood among other top gainers.

The benchmark equity index BSE Sensex surged 424 points, or 0.87%, to 49,206 during the week. On the other hand, the BSE Midcap index gained 296 points, or 1.46%, to 20,608.61. The BSE Smallcap index climbed 547.99 points, or 2.53%, to 22,218.10. Likewise, the 50-share Nifty index gained 192 points, or 1.31%, to 14,823.15.

Bharat Heavy Electricals (up 20%), Vaibhav Global (up 19%), NMDC (up 19%), CCL Products (up 18%), Coforge (up 18%), Welspun India (up 18%), National Aluminium (up 17%), The South Indian Bank (up 17%) and Tata Coffee (up 17%) were among other majors gainers of the week.

Expert view

Commenting on the impact of the second Covid wave and its impact on the broader market, Amar Ambani, Senior President and Head of Research-Institutional Equities, YES Securities, said: “The peak of the case curve for the ongoing second wave is difficult to predict and may keep markets on tenterhooks in the near term. It is possible for the Nifty to fall to 13,600-13,800, on fears of impact on economic recovery, damage to small businesses and postponement of consumption.”

However, he added that they are positive on equities. “Among sectors we like are infrastructure, building materials like paints, cement, life insurance, specialty chemicals and consumer discretionary. We believe midcaps will continue to outshine in the medium to long term,” Ambani said.

In the near term, local and global macroeconomic data, earnings, Covid-19 updates and global cues are some of the factors which will guide the domestic stock market next week. Besides, the movement of the rupee against the dollar and crude oil prices, the movement in global stock markets will also dictate the trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will also be monitored.