Nifty and Sensex post fourth straight week of gains

The Sensex and Nifty extended their winning streak to a fourth consecutive week, supported by lower crude oil prices, easing global interest rate expectations and positive domestic sentiment. Investors now await the earnings season, FOMC minutes and progress in global trade negotiations

Mumbai: The Indian equity benchmarks posted a fourth consecutive week of gains amid a sustained correction in crude oil prices and expectations of a more favourable global interest rate environment.

Nifty added 0.89 per cent during the week and edged up 0.39 per cent on the last trading day to close at 24,270. At the close, the Sensex was up 261 points, or 0.34 per cent, at 77,763. It gained 0.86 per cent during the week.

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The domestic markets shifted from defensive caution at the start of the week to growing optimism by the close. The early part of the week was marked by profit-booking due to scepticism over the durability of the US-Iran peace arrangement, muted expectations ahead of the upcoming earnings season and a patchy start to the monsoon.

“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 in trade, defence, semiconductors, AI collaboration and a proposed rupee-yen settlement framework.

On the sectoral front, real estate, pharma and healthcare stocks outperformed, whereas PSU banks and energy stocks lagged.

The IT sector staged a notable rebound due to short covering and a strengthening investment narrative around Indian IT firms’ role in enterprise AI adoption.

Broad market indices performed almost in line with the benchmark indices, as the Nifty Midcap100 added 0.64 per cent, while the Nifty Smallcap100 rallied 2.05 per cent during the week.

According to analysts, the immediate resistance for the Nifty is at the 24,400 level, while the 24,200 level is expected to provide immediate support, followed by the 24,000 level.

Immediate support for the Bank Nifty is in the 57,600-57,500 zone, while resistance is seen in the 58,200-58,300 zone.

Investors remain focused on the US FOMC minutes, the 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 view on incremental positives,” a market participant said.