Indian equities ended the week higher despite a Friday sell-off, with both benchmark indices closing with significant gains. According to The Economic Times, the 30-share BSE Sensex climbed 254 points to close at 76,802.88, while the 50-share NSE Nifty 50 gained 82 points to end the session at 24,013.10. During the week, the Sensex rose 1.69% and the Nifty gained 1.65%, though both benchmarks slipped nearly 1% on Friday after a four-session rally. The Nifty Midcap 100 and Nifty Smallcap 100 indices gained up to 0.5% during the week, with most major sectoral indices finishing in the green. The India VIX declined nearly 4% and slipped below the 13 mark, indicating reduced volatility expectations. According to The Economic Times, a total of 1,897 stocks witnessed advances, 1,382 saw declines while 105 stocks remained unchanged out of the 3,384 stocks that traded on NSE, showing broad-based participation in the rally.
Max Healthcare emerged as the top gainer, surging 6.27%, followed by InterGlobe Aviation at 2.74%, Trent at 2.48%, and Adani Enterprises at 2.09%. Other notable performers included BEL (2.09%), NTPC (1.81%), HDFC Life (1.64%), SBI (1.58%), and HDFC Bank (1.52%). On the downside, Infosys led the laggards, declining 2.61%, followed by Tata Consumer (-1.17%), Maruti Suzuki (-1.08%), Tech Mahindra (-1.01%), TCS (-0.89%), and Wipro (-0.89%). According to The Economic Times, Vodafone Idea was among the most actively traded stocks in volume terms, with 34.35 crore shares traded, while IFCI, Yes Bank, and New India Assurance also featured prominently in volume trading. From the 30-Sensex firms, InterGlobe Aviation, Trent, Bharat Electronics, NTPC, State Bank of India, and HDFC Bank were among the biggest winners, while Infosys, Tech Mahindra, Maruti, and Tata Consultancy Services were among the laggards. Nykaa continued its strong performance, quoting at ₹296.45, up ₹15.20 or 5.40%, having touched a 52-week high of ₹297 during the session.
The market rally was primarily driven by gains in financial and auto stocks, along with strength in crude-sensitive sectors, as reported by LiveMint. However, technology shares faced pressure, with the BSE IT index falling 1.3% during the week, with most of the decline coming on Friday when the index dropped around 4%. According to Bajaj Broking, Infosys, TCS and Tech Mahindra declined between 2% and 6%, with the correction reflecting "deep-seated structural anxiety" around AI and a cyclical slowdown in enterprise spending. The Nifty IT index declined over 1% in today's session after US Federal Reserve policymakers signalled the possibility of a rate hike later this year. The divergence in sectoral performance highlighted the market's selective approach to different industries, with traditional sectors outperforming technology stocks. According to Moneycontrol, except IT, Energy, all other sectoral indices ended in the green with Media, Pharma, PSU Bank, Private Bank and Realty up 0.5% each. The BSE Capital Goods and Realty indices gained more than 5% each, aided by improving risk appetite, lower crude prices and hopes of stronger investment activity. Utilities, hospitals, services, power, telecom and healthcare stocks led sectoral gains, while IT and energy shares faced selling pressure.
The US Federal Reserve maintained the federal funds rate in the 3.50%-3.75% range on Wednesday, leaving it unchanged for the fourth consecutive meeting as policymakers sought to balance economic growth with inflation control, according to LiveMint. While rates were left unchanged, several policymakers indicated that a rate hike may be required later this year to bring inflation back toward the central bank's 2% target. Of the 18 Federal Reserve officials who submitted interest-rate projections, nine now expect rates to rise this year, reflecting concerns that inflation could remain elevated amid higher oil prices following the Iran conflict. The Fed's decision to keep rates unchanged, while indicating a possibility of further tightening later this year, has led to mixed market reactions with investors remaining cautious about the hawkish outlook. Market participants are now awaiting the first US Fed policy decision under Chair Kevin Warsh, with the FOMC outcome and press conference scheduled late Wednesday India time. According to The Economic Times, Vinod Nair, Head of Research at Geojit Investments, noted that domestic equities traded within a range as optimism surrounding the US-Iran peace deal was tempered by hawkish remarks from the US Federal Reserve. However, he added that a sustained decline in crude oil prices and moderation in Indian bond yields could offset inflationary concerns in the second half of FY27, with market participants awaiting further clarity on the peace agreement.
Global developments supported sentiment for most of the week, with the US-Iran agreement and reopening of the Strait of Hormuz easing concerns over energy supplies, pushing Brent crude towards $79 a barrel. Lower crude prices are positive for India's inflation and current account outlook. According to The Economic Times, Indian equities outperformed Hong Kong and Thailand during the week, but lagged the region's best-performing markets. South Korea's KRX 100 surged 13%, while Taiwan's Taiex gained 5%, compared with the Nifty's 1.65% rise. Foreign investors returned as buyers, purchasing equities worth more than ₹3,760 crore during the week, while domestic institutional investors remained supportive with net purchases of ₹8,267 crore. However, weak progress of the southwest monsoon has emerged as a key risk, with India facing a rainfall deficit of around 40% with central India the worst hit. A prolonged dry spell could hurt rural demand, push up food inflation and weigh on consumption-linking sectors. Rajesh Singla from Alpha AMC noted that below-normal rainfall may pressure rural-facing businesses, though markets are likely to respond through sector rotation rather than a broad correction.
According to The Economic Times, Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty closed above its previous swing high, indicating an improving sentiment. He added that overall, the outlook remains positive, with the index sustaining above its critical moving averages and the RSI in a bullish crossover. However, he cautioned that we need to remain cautious as the Nifty has rallied nearly 1,000 points in just six sessions, while a phase of consolidation in the near term looks quite possible before the next directional move. The Nifty may spend the next few sessions oscillating within the 23,800–24,200 range, with support placed at 24,000, followed by 23,800, while resistance is placed at 24,200 and 24,500. Among the ones which hit their 52-week highs on NSE included Welspun India, ABSL AMC, Nykaa, Vardhman Textiles, Carborundum, R R Kabel and Syrma SGS Technology, while Bharti Hexacom hit its 52-week low. Stocks which witnessed significant selling pressure were IFCI, IDBI Bank, Inox India, Elecon Engineering, Chennai Petroleum Corporation, Jindal Stainless and Suven Pharma, with IFCI, IDBI Bank, and Inox India among the most actively traded stocks in volume terms. Bata India, KPR Mill, Welspun India, Redington, New India Assurance, Five-Star Business Finance and Olectra Greentech were among the stocks that witnessed strong buying interest. Technical indicators suggest that the Nifty's near-term trend remains positive after the index broke above a falling channel that had contained its price action over the previous two months, with Bajaj Broking Research noting that as long as the Nifty holds above the crucial 24,000 zone, the immediate bias remains bullish. The index could move towards the 24,270 and 24,350 levels in the next trading session, with analysts believing that the recent breakout above the previous swing high of May 26 signals renewed strength, potentially moving towards its April peak of around 24,600 in the coming weeks.
