Indian benchmark indices logged their longest winning streak in seven months during a holiday-shortened week, with the Sensex rising 0.39% and the Nifty 50 gaining 0.18% to close at 24,056. According to Zee News, the Sensex closed at 77,100, up 109 points or 0.14%, while the Nifty hit a high of 24,261.60 during the session. The positive momentum was driven by crude oil prices plunging back to pre-war levels and rising institutional inflows, despite persistent pressure on broader mid-cap and small-cap stocks. Both indices ended the week marginally higher for the second consecutive session on Thursday, with markets remaining closed on Friday for a holiday. The domestic markets navigated a week of mixed signals with notable resilience, even as broader indices faced modest selling pressure.
The sectoral trend remained mixed during the week, with pharma, healthcare, realty, private banks, and auto emerging as top gainers, while metals, consumer durables, PSU banks, IT, and FMCG stocks ended lower. As reported by Zee News, pharma and healthcare stocks outperformed, while private banks advanced following the RBI's clarity on the FCNR(B) deposit swap scheme. The weakness was concentrated in global-facing and commodity-linked sectors, with metals falling 4.7%, capital goods shedding 3.1%, and power stocks declining 2.9%. However, broader markets underperformed significantly, with the Nifty Midcap100 losing 1.15% and the Nifty Smallcap100 edging up just 0.03% during the week. Consumer durables lagged amid demand concerns while metals were major losers due to falling commodity prices.
Thursday's gains were led by automobile and heavyweight banking stocks, with Mahindra & Mahindra, Maruti Suzuki, ICICI Bank and State Bank of India providing the biggest support to the benchmark indices. According to Pranay Aggarwal, director and CEO of Stoxkart, auto stocks outperformed as retail demand improved during the month and softer metal prices eased input cost pressure on car makers. Rajesh Singla, chief executive and fund manager at Alpha AMC, noted that softer crude prices had improved sentiment toward rate-sensitive and domestic-facing sectors. Vinod Nair, head of research at Geojit Investments, noted that the sharp correction in crude oil prices to pre-war levels, supported by improved traffic through the Strait of Hormuz, easing geopolitical risks amid progressing US-Iran talks, and optimism surrounding an India-US trade deal helped boost domestic investor sentiment. Easing geopolitical risks amid progressing US–Iran talks, and optimism around an India–US trade deal, helped fuel domestic investor sentiment.
On the global front, the Nifty 50 outperformed several peers through the week, with markets in Hong Kong, Malaysia, Indonesia as well as the S&P index declining 2-3.5%. As reported by Pulse of the Street, India trailed Japan, China and Brazil, where benchmark indices gained 1-2%. Harshal Dasani, business head at INVasset PMS, attributed domestic institutional buying and softer crude prices as factors that helped limit the decline in Indian equities. The global market context shows mixed signals with some markets declining while others remain resilient. Foreign portfolio investors (FPIs) purchased shares worth ₹2,305.31 crore during the week, while domestic institutional investors (DIIs) bought shares worth ₹11,100.94 crore, according to data from NSDL and the BSE. However, investor wealth declined by ₹2.37 lakh crore during the week, with the total market capitalisation of BSE-listed companies falling to ₹475.16 lakh crore.
The immediate resistance levels for Nifty are placed at 24,400 and 24,500, while support is seen at 23,900 and 23,800. As reported by Zee News, immediate support for Bank Nifty is placed in the 57,500–57,400 zone, while resistance is seen at 58,900 and 59,000. Sustained softness in crude prices remains a clear macro positive in the near term along with improving inflation, fiscal, and current account dynamics collectively providing the RBI with greater policy flexibility. However, expectations of rising inflationary pressure and a potential dampening in rural demand began to surface, driven by concerns over uneven monsoon distribution. As corporate earnings reports are expected in the coming weeks, management commentary on demand visibility, margins, and order flows will serve as key indicators for market direction. A market participant noted that a prudent yet optimistic stance is warranted, with a focus on selectively building positions in fundamentally strong companies that have seen recent corrections without any meaningful deterioration in their underlying outlook.
