Indian stock markets closed Friday with modest gains, helping secure weekly advances despite ongoing geopolitical uncertainties. According to The Economic Times, the NSE Nifty 50 rose 0.3% or 64.60 points to close at 23,719.30, while the BSE Sensex advanced 0.3% or 231.99 points to end at 75,415.35. Both indices demonstrated resilience with weekly gains of 0.4% after experiencing declines of over 2% the previous week. The positive momentum was supported by buying at lower levels and selective strength in financials, as noted by Vinod Nair, Head of Research at Geojit Investments Limited.
Market sentiment remained cautiously optimistic due to positive cues from global markets and expectations of easing Middle East tensions. The Dow Jones Industrial Average rose 276.31 points, or 0.55%, to a record close on Thursday, setting up firm support for Asia-Pacific markets. As reported by The Economic Times, US Secretary of State Marco Rubio indicated there are "some good signs" that Washington could reach a deal with Tehran, though both sides remain at odds over Iran's Supreme Leader Ayatollah Mojtaba Khamenei's comments regarding uranium retention. Brent crude oil futures for July and US West Texas Intermediate futures for June advanced around 2% in early Asia trading, resuming their rally after three straight sessions of declines as investors weighed mixed messaging on Iran peace deal negotiations. Latest reports from the West Asia conflict showed that the United States awaits a positive outcome of negotiations with Iran over the weekend, with America prepared to carry out a 'large-scale' offensive against Iran if both sides fail to reach a potential peace deal.
Grasim Industries emerged as the top NIFTY50 gainer with a 7.5% weekly gain, followed by Wipro at 6.9%, Infosys at 5%, Trent at 4.8%, Hindalco Industries at 3.9%, and Tech Mahindra at 3.8%. Among the top laggards, Power Grid Corp. lost 3.8%, Tata Steel declined 3.5%, Tata Consumer Products fell 3.4%, ONGC dropped 3.1%, HUL lost 3%, and Max Healthcare Institute declined 2.6%. On a sectoral basis, Nifty IT led with a 4.7% weekly gain, Nifty Realty advanced 2.4%, and Nifty India Defence index rose 1.1%. Other gainers included Nifty Capital Markets Index (1.1%), Nifty Oil & Gas (1.1%), Nifty Private Bank (1.1%), and Nifty Energy (1.1%). Conversely, Nifty Media declined 4.3%, Nifty FMCG fell 1.6%, Nifty PSU Bank dropped 0.3%, Nifty Pharma fell 0.2%, and Nifty Metal declined 0.2% during the week.
Foreign portfolio investors continued their selling pressure, offloading shares worth a net ₹4,440.47 crore on Friday, marking the third consecutive trading session of FII outflows. However, domestic institutional investors provided strong support by purchasing shares worth ₹6,003.53 crore in a single day across both exchanges. As reported by The Economic Times, foreign investors have sold shares worth ₹27,154.9 crore so far in May. The Indian stock market witnessed support from a recovering Indian rupee rate, which earlier dropped to an all-time low of 96.97 against the benchmark US dollar but recovered in the final two trading sessions on subdued dollar demand and lower crude oil prices. Crude oil prices remained elevated near $110 per barrel earlier this week before cooling down to $102 per barrel levels during Friday's evening session, providing relief to the import-dependent economy. India's volatility index, the Nifty India VIX, declined 4.7% due to investors looking forward to any positive development on the West Asia front amid the fragile ceasefire agreement.
Midcap stocks outperformed with the Nifty Midcap index rising 1.4% to close 0.14% higher at 61,389.30 points, compared to 61,300.60 points at the previous market close. Top gainers included Tata Communications (16.9%), GE Vernova T&D India (11.7%), Lenskart Solutions (9.5%), Jitachi Energy India (9.3%), Coforge (8.2%), and Page Industries (7.2%). Among the losers, PI Industries declined 10.7%, Mahindra & Mahindra Financial Services fell 6.6%, LG Electronics India dropped 5.7%, Jubilant FoodWords declined 5.4%, Godfrey Phillips India fell 4.5%, and Rail Vikas Nigam Ltd dropped 4.2%. The Nifty Smallcap 100 gained 0.4% to close 0.15% lower at 17,956.20 points, compared with 17,983.05 points at the previous market close. Notable gainers included Gland Pharma (24.9%), Triveni Turbine (16.5%), Firstsource Solutions (13%), JSW Cement (12%), Deepak Fertilisers and Petrochemicals Corp. (11.8%), and Angel One (10.6%). Losers included Amber Enterprises (13.2%), KEC International (11.6%), Afcons Infrastructure (10.8%), Pine Labs (6.3%), Delhivery (5.9%), and Ather Energy (5.7%).
