Indian equity benchmarks ended the week on a strong note, marking a fourth consecutive week of gains as declining crude oil prices and hopes of a more accommodative global interest rate environment lifted investor sentiment.
The NSE Nifty 50 advanced 0.89 per cent during the week and closed Friday’s session up 0.39 per cent, or 95 points, at 24,270. The BSE Sensex gained 261 points, or 0.34 per cent, to end at 77,763, taking its weekly advance to 0.86 per cent.
Markets began the week on a cautious note amid profit booking driven by uncertainty over the durability of the US-Iran peace arrangement, muted expectations ahead of the upcoming corporate earnings season and uneven monsoon progress. Sentiment improved as the week progressed.
Analysts said easing tensions around the Strait of Hormuz helped push crude oil prices lower, while dovish comments from the US Federal Reserve Chair and softer US labour market data strengthened expectations that global interest rates could ease in the coming months.
IT, Realty And Pharma Lead
Investor confidence was also supported by optimism surrounding the India-Japan summit, with expectations of progress in trade, defence cooperation, semiconductor manufacturing, artificial intelligence and a proposed rupee-yen settlement framework.
Among sectors, real estate, pharmaceutical and healthcare stocks outperformed the broader market. Information technology shares also rebounded strongly, aided by short covering and growing optimism about the role of Indian IT companies in enterprise AI adoption.
Public sector banks and energy stocks, however, underperformed during the week.
The broader market remained resilient, with the Nifty Midcap100 index gaining 0.64 per cent, while the Nifty Smallcap100 outperformed with a weekly rise of 2.05 per cent.
Earnings, Fed Minutes And Monsoon
Market participants said the Nifty faces immediate resistance around the 24,400 level, while support is expected near 24,200, followed by the key psychological mark of 24,000.
For the Bank Nifty, analysts see support in the 57,600-57,500 range and resistance between 58,200 and 58,300.
Looking ahead, investors will closely monitor the minutes of the US Federal Open Market Committee (FOMC) meeting, the start of India’s first-quarter earnings season, monsoon progress, domestic credit growth and ongoing trade negotiations involving India, Japan, the United Kingdom and the United States.
“Easing tensions around the Strait of Hormuz weighed on crude oil prices, while dovish commentary from the Fed Chair, coupled with softer US labour market data, reinforced expectations of a more accommodative global interest-rate environment,” analysts said.
Further, domestic sentiment received an additional boost from optimism surrounding the India-Japan summit, with investors anticipating progress across trade, defence, semiconductors, AI collaboration, and a proposed rupee-yen settlement framework.
Investors remain keen on US FOMC minutes, domestic earnings season, monsoon progress, credit growth trends, and ongoing trade negotiations with Japan, the UK, and the US.
“While risks persist amid downward revisions to earnings growth estimates, monsoon-related inflation concerns, and continued FII caution, much of the visible uncertainty appears to be priced in, leaving room for a constructive read on incremental positives,” a market participant said.
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