India's seeing a mini bull run, with stocks of the top 200 companies running at above their 200-day moving average. Image Credit: Bloomberg

Mumbai: Indian stocks capped a seventh straight week of gains as investors look beyond the benchmark indexes that keep setting record highs.

The S&P BSE Sensex advanced 0.2 per cent to 46,960.69 in Mumbai, while the NSE Nifty 50 Index was little changed. Both gauges rose about 2 per cent this week, with the Sensex marking its longest weekly winning streak since April 2019.

A rally that has rewarded cyclical stocks that are closely tied to economic growth is now about as broad as it can get. Almost all of India's 200 biggest companies are trading above their 200-day moving average for the first time since 2009.

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Still space to grow

While concerns about historically high valuations may be tempering the pace of gains, there are still pockets of the market that can outperform, mirroring the value rotation that is delivering returns globally, according to a note from analysts at Jefferies India Ltd. led by Mahesh Nandurkar.

"Economic revival, vaccine news-flow and stable or weak US dollar will likely drive the value theme to perform well," Nandurkar wrote in a note, highlighting state-owned enterprises on the S&P BSE PSU index as "deep value".