New Delhi, March 22 (NationPress) The Indian stock markets experienced a remarkable recovery this week, with the benchmark indices Nifty and Sensex soaring over 4 percent -- marking the best weekly performance in four years. This rally was driven by enhanced investor sentiment, increased foreign flows, and positive global developments, experts noted on Saturday.

The Nifty climbed more than 4 percent, achieving its highest weekly gain since February 2021, while the Sensex rose by 4 percent, its most significant increase since July 2022.

The revival in market sentiment was catalyzed by the resurgence of FIIs, coinciding with a strengthening Indian rupee. Furthermore, the considerable corrections in several stocks over recent months created value-buying opportunities, attracting investors eager to take advantage of lower valuations.

The Nifty concluded at 23,350.4, while the Sensex finished the week at 76,905.51, both nearing their weekly peaks.

Benchmark indices rose for the fifth consecutive session on Friday, as widespread buying drove the market upward. The broader market also saw gains, with Nifty midcap and smallcap indices closing up by 1.4 percent and 2.1 percent, respectively, according to Bajaj Broking Research.

“Several factors contributed to this robust recovery. The easing pressure from foreign institutional investors (FIIs) and positive flows in both cash and derivatives segments provided essential stability. In addition, crude oil prices and the dollar index remained low following a recent drop, further supporting market sentiment,” stated Ajit Mishra, SVP, Research at Religare Broking Ltd.

Moreover, dovish signals from the US Federal Reserve concerning future rate cuts, along with reports of de-escalation in the Russia-Ukraine conflict, contributed to the overall optimism.

This rally was widespread, with all major sectors participating. Realty, energy, and pharma sectors emerged as the top gainers, while midcap and smallcap indices surged between 7.7 percent and 8.6 percent, bolstering overall market buoyancy.

Experts suggest that with no significant domestic economic events scheduled, attention will turn to the expiry of March derivatives contracts and FII activity.

Globally, the US markets will be under scrutiny, with tariff-related updates and GDP growth data expected to influence investor sentiment. Although US markets experienced a brief recovery after a sharp decline, mixed signals indicate potential volatility in the upcoming sessions.

Traders are encouraged to implement a “buy on dips” strategy, concentrating on sectors demonstrating consistent strength. Banking, financials, metals, and energy stocks remain favored selections, while select opportunities can also be examined in PSU and auto stocks, according to market analysts.