Indian stock markets post weekly gains as crude prices ease

Indian equity benchmarks posted weekly gains for the second consecutive week, supported by lower crude oil prices and strong Q1 FY27 earnings. Nifty gained 0.77 per cent, while Sensex added 0.52 per cent during the week amid broad-based buying.

Mumbai: The Indian equity benchmarks posted gains for the second consecutive week, over sharp corrections in crude oil prices and strong Q1 FY27 earnings results.

Nifty jumped 0.77 per cent during the week and shed 0.27 per cent on the last trading day this week to reach 24,570. At close, Sensex was down 455 points, or 0.58 per cent, at 78,499. It added 0.52 per cent during the week.

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Small-cap stocks continued to outperform, supported by strong earnings traction and stock-specific catalysts, while PSU banks led sectoral gains on improving fundamentals.

Metals benefited from a stronger growth outlook and resilient domestic demand, while automobiles gained momentum on expectations of healthy festive-season demand, said market watchers.

The week started on a volatile note triggered by the rollout of the new F&O Closing Auction Session (CAS), but markets regained stability as participants adapted to the revised framework, an analyst said.
“Sentiment improved meaningfully with the sharp decline in crude oil prices, which helped strengthen the macroeconomic outlook and supported expectations of easing inflationary pressures,” he added.

Globally, softer labour market indicators reduced the likelihood of a near-term Fed rate hike, leading to a moderation in US bond yields and a weaker dollar. This, coupled with sustained safe-haven demand ahead of key US economic data releases, provided additional support to gold prices.

On the domestic front, the RBI reinforced confidence by maintaining its policy stance, while modestly upgrading its growth outlook and lowering inflation projections. The ongoing Q1 FY27 earnings season has further strengthened investor confidence, with results broadly exceeding expectations and driving broad-based buying interest.

Broad market indices outperformed the benchmark indices, as Nifty Midcap100 added 0.87 per cent, while Nifty Smallcap100 jumped 2.73 per cent during the week.

Investors are looking for cues from upcoming US labour market and inflation data for further clarity on the Fed’s policy trajectory. Domestically, CPI and WPI inflation readings, along with credit growth trends, will provide key insights into India’s growth-inflation dynamics.