Indian benchmark indices ended higher for the week despite volatile trading conditions, with the BSE Sensex advancing 414.69 points or 0.53% to close at 77,328.19, while the NSE Nifty 50 gained 178.6 points or 0.74% to settle at 24,176.15. According to latest reports, the total market capitalisation of BSE-listed companies jumped more than ₹10 lakh crore during the week. Mahindra and Mahindra led the increase in market capitalisation, followed by Adani Ports and Special Economic Zone, HDFC Bank, and Asian Paints. In contrast, State Bank of India, Bharti Airtel, and Tata Consultancy Services witnessed a decline in their market capitalisation during the same period. The market notched up weekly gains despite Friday's decline, with falling oil prices providing some support to offset geopolitical concerns.
Indian equities ended weak on Friday as renewed US-Iran hostilities near the Strait of Hormuz dampened investor sentiment. According to reports from The Economic Times, the S&P BSE Sensex dropped 516.33 points or 0.66% to 77,328.19, while the NSE Nifty 50 lost 150.50 points or 0.62% to close at 24,176.15. However, both indices climbed 0.7% and 0.5%, respectively, for the week, securing gains for the second consecutive week. The market notched up weekly gains despite Friday's decline, with falling oil prices providing some support to offset geopolitical concerns. Vinod Nair, Head of Research at Geojit Investments, noted that "Markets witnessed a risk-off session following fresh US-Iran military action near the Strait of Hormuz, which weakened ceasefire hopes and triggered profit booking."
As reported by The Economic Times, Christy Mathai, fund manager at Quantum Mutual Fund, noted that "The military confrontation between the US and Iran, despite talks of negotiation, kept investors on the edge." Market analysts highlighted concerns about elevated commodities potentially toning down earnings expectations in the next few quarters due to higher input costs. US Secretary of State Marco Rubio said Washington is awaiting Iran's response to a proposed peace deal and called Iran's claims over the Strait of Hormuz "unacceptable." Brent crude oil for July 2026 settlement gained 0.57 cents or 0.57% to $100.63 a barrel, with contracts rising above the $100-per-barrel mark, stoking fears of rising inflation and a spike in India's import bill. However, the fall in oil prices helped cushion some of the geopolitical impact and contributed to the week's positive performance. Vinod Nair from Geojit Investments added that "though the road ahead is slightly bumpy, optimism around a possible diplomatic resolution persists," while noting that stability in crude oil prices around $100 per barrel and softer US bond yields continue to support overall market sentiment and the rupee.
According to latest reports, the Nifty Smallcap index gained 4% during the week, extending its rally for the fifth consecutive week. Among the top performers were Firstsource Solutions, Nuvama Wealth Management, Dr Lal PathLabs, Neuland Laboratories, Anant Raj, CreditAccess Grameen, and Wockhardt, which surged between 15% and 28%. On the other hand, Urban Company, Gujarat Mineral Development Corporation (GMDC), Devyani International, Sona BLW Precision Forgings, Aarti Industries, and Brigade Enterprises were among the major laggards during the week. The Nifty Midcap 100 index advanced 3.5% during the week, extending gains for the second consecutive week and hitting a fresh all-time high. The rally was led by stocks such as Yes Bank, Bharat Heavy Electricals (BHEL), Coforge, Polycab India, Laurus Labs, Dabur India, SRF, and Motilal Oswal Financial Services. Nifty FMCG gained 0.19% and Nifty Media edged higher by 0.04%, while Nifty Metal fell 0.87%, Nifty Auto slipped 0.29%, and Nifty Pharma was down 0.10%.
As reported by The Economic Times, Vipin Kumar, AVP Equity Research and PMS (Derivatives & Technical Analyst) at Globe Capital Market, noted that "Nifty has been consolidating in a narrow 800-point band between 23,800 and 24,600 levels for the past couple of weeks." For a decisive move, the index will have to breach the 23,800 level or break out above the 24,600 level. Foreign portfolio investors sold shares worth a net ₹4,110.60 crore on Friday, while domestic institutional investors bought shares worth ₹6,748.13 crore. So far in May, foreign investors have sold shares worth ₹10,308 crore. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.32% to 16.84, while the yield on India's 10-year benchmark federal paper rose 0.59% to 6.974 compared with previous session close of 6.933. The Nifty is on the cusp of a breakout but is in short supply of fresh triggers, according to analysts. Vinod Nair from Geojit Investments noted that investors continue to focus on opportunities arising from favourable corporate earnings, especially in mid- and small-cap stocks where valuations remain attractive.
According to latest reports, the Indian rupee touched a fresh all-time low of 95.43 during the week but staged a strong recovery to end higher, snapping its three-week losing streak. On Friday, the rupee settled 44 paise stronger at 94.48 against the U.S. dollar, compared to 94.92 in the previous week. The BSE 150 MidCap Index shed 0.05%, while the BSE 250 SmallCap Index rose 0.15%. Market breadth was negative on the BSE, with 2,068 shares rising and 2,148 shares falling, while 206 shares remained unchanged. The partially convertible rupee was hovering at 94.4450 compared with its close of 94.2200 during the previous trading session, further denting market confidence. Commodity markets saw precious metals rise with MCX Gold futures for 5 June 2026 settlement jumping 0.33% to ₹152,757, and silver prices rising more than 1% to ₹2,61,252 per kg. In political developments, Union Home Minister Amit Shah announced the election of Suvendu Adhikari as the leader of the BJP Legislative Party in West Bengal, paving the way for him to become the state's next chief minister. Actor-turned-politician Vijay is expected to take oath as the Chief Minister of Tamil Nadu on Saturday at 11 am.
