Mumbai: The Indian equity benchmarks posted notable gains during the week over easing crude prices, a firmer rupee and softer 10-year bond yields despite lingering geopolitical tensions.
Nifty gained 0.76 per cent during the week and dipped 0.60 per cent on the last trading day to reach 24,180. At close, Sensex was down 516 points or 0.66 per cent at 77,328. It advanced 0.54 per cent during the week.
“The improvement in macro conditions shifted sentiment from early-week caution to a more constructive stance, allowing markets to absorb profit booking triggered by fresh headlines towards the end of the week,” an analyst said.
Investor confidence was further supported by favourable state election outcomes and Q4 earnings that came in better than cautious expectations. Midcap and smallcap indices outperformed benchmark indices, while sectors such as autos, defence, realty, and pharma witnessed strong buying interest.
Nifty Midcap100 added 3.49 per cent, while Nifty Smallcap100 gained 4.05 per cent during the week.
While stable crude prices and rupee recovery offer near-term support, any renewed escalation in West Asia remains a key risk, particularly for commodity-sensitive sectors, they added.
The markets ended lower on the last day of the trading week as the United States and Iran exchanged fire which prompted investors to reassess expectations of a near-term peace deal and rekindled energy supply chain concerns.
Iran claimed the US had violated the ceasefire agreement. However, US President Donald Trump reaffirmed that the ceasefire remained in effect, and Iran said the situation has returned to normal.
Brent crude oil declined over 3 per cent in international markets to trade below the $95-per-barrel mark, while domestic crude futures slipped below the Rs 9,000 level, reversing much of the previous session’s escalation-driven rebound.
Meanwhile, Nifty 50 is expected to see the 24,250–24,300 level as an immediate resistance zone and the 24,100–24,000 band remains a crucial support area, market participants said.
In Bank Nifty, a sustained move above 55,500 could extend the recovery toward 55,800–56,000, strengthening near-term momentum, they added.
Investors remain keen on cues from India and US inflation data, along with domestic credit growth trends, as these will influence RBI rate expectations and corporate margin outlook.
(IANS)
