Markets End Week on a High as Banking, IT, and Pharma Stocks Drive Gains

Mumbai – Indian stock markets wrapped up the week on a strong note, buoyed by sustained buying in banking, IT, and pharma stocks during the final two sessions.

Investor sentiment toward the banking sector remained upbeat following the RBI Monetary Policy Committee’s decision to keep the repo rate unchanged at 5.5 per cent. The mood improved further after the government invited private sector professionals to lead the State Bank of India (SBI) — a move seen as part of a broader policy shift to enhance efficiency and governance in public sector enterprises.

Pharma stocks also witnessed renewed momentum toward the end of the week after the US administration clarified that it would not impose tariffs on generic drugs and signaled plans to curb biotech collaborations with certain foreign firms, particularly from China.

“Pharma stocks rallied as the US revived the Biosecure Act, aiming to cut biotech ties with flagged foreign firms, especially from China. This provided a strong boost to Indian CDMOs. With the earnings season underway, investors are closely watching quarterly results for cues on market direction,” said Vinod Nair, Head of Research at Geojit Financial Services.

On Friday, the benchmark indices extended their gains for the second consecutive session, led by robust buying in pharma and banking counters.

The Sensex opened around 100 points lower at 82,075 amid early weakness in IT stocks but quickly rebounded, climbing 579 points to an intra-day high of 82,654. It eventually settled 329 points higher at 82,501, up 0.4 per cent. The Nifty 50 hit a high of 25,331 before closing 104 points or 0.4 per cent higher at 25,285.

“The government’s decision to involve private sector leadership in SBI reflects a strategic move toward modernizing governance in public sector banks, which further lifted investor confidence,” Nair added.

For the week, the Nifty advanced 391 points (1.57%), while the Sensex gained over 1,000 points (1.35%). Analysts noted strong technical momentum, with Hardik Matalia of Choice Equity Broking pointing out that the Nifty has formed a cup-and-handle pattern — a breakout from which could signal further upside.

Sector-wise, the Bank Nifty surged 1.84 per cent, the Nifty IT jumped 4.8 per cent, and the Nifty Pharma index climbed 2.12 per cent, collectively fueling the market’s upward momentum.

With inputs from IANS