Midcaps, smallcap lead Sensex to positive weekly closing

Indian indices ended the week on a positive note for the first time after three consecutive weeks. The BSE Midcaps and Smallcap index managed to beat the Sensex, which can be considered as a major positive cue of the markets, going forward.

Sensex closed 0.51 per cent higher this week to end at 39,394.64 and the Nifty closed at 11,788.85, up 0.59 per cent. The broader market index represented by the Nifty 500 index closed 0.81 per cent higher this week. While the BSE Midcap and Smallcap ended the week higher by 1.25 per cent and 1.10 per cent, respectively.

On Thursday, SEBI’s decision on tightening regulations for crisis-hit debt mutual funds severely and after the market indulged in the fine print of the regulations, on Friday, the market experienced selling pressure. The benchmark indices BSE Sensex closed at 39,394.64, down by 191.77 or 0.48 per cent, while Nifty50 closed at 11,788.85, down by 52.70 or 0.45 per cent. After the bloodbath in NBFC companies since late 2018, SEBI's decision is a step in the right direction.

Going ahead, the inputs from crucial meetings of world leaders of the US and China will drive markets, globally. The resolution of trade tensions will be a key factor for emerging markets.