NIFTY 50, BSE SENSEX End Week Higher as Crude Prices Ease and Rupee Strengthens

Mumbai - Indian stock markets registered solid gains during the week, supported by easing crude oil prices, a stronger rupee and softer bond yields, even as geopolitical tensions in West Asia continued to keep investors cautious.

The NIFTY 50 gained 0.76 per cent for the week, although it slipped 0.60 per cent on the final trading day to close at 24,180. Meanwhile, the BSE SENSEX ended Friday down 516 points, or 0.66 per cent, at 77,328, but still posted a weekly gain of 0.54 per cent.

Market experts said improving macroeconomic conditions helped shift investor sentiment from caution at the start of the week to a more optimistic outlook later on. The positive momentum also helped markets absorb profit-booking pressure triggered by fresh geopolitical headlines toward the end of the week.

Investor confidence received an additional boost from favourable state election results and fourth-quarter corporate earnings that turned out better than market expectations.

Broader markets outperformed the benchmark indices during the week. The Nifty Midcap100 advanced 3.49 per cent, while the Nifty Smallcap100 surged 4.05 per cent.

Sector-wise, auto, defence, realty and pharma stocks attracted strong buying interest from investors.

Analysts noted that stable crude prices and the rupee’s recovery are providing short-term support to the market. However, they warned that any fresh escalation in West Asia could pose risks, especially for sectors sensitive to commodity prices.

Markets turned negative on the final trading session after reports of renewed tensions between the United States and Iran. The exchange of fire between the two countries raised concerns over the possibility of delays in a peace agreement and renewed worries about global energy supply disruptions.

Iran accused the US of violating the ceasefire agreement, while Donald Trump maintained that the ceasefire remained intact. Iranian authorities later stated that the situation had returned to normal.

In the commodities market, Brent crude prices fell more than 3 per cent to trade below $95 per barrel. Domestic crude futures also dropped below Rs 9,000, reversing most of the previous session’s sharp gains.

Market participants expect the NIFTY 50 to face immediate resistance in the 24,250–24,300 range, while the 24,100–24,000 zone is seen as a key support area.

For the NIFTY BANK, analysts believe a sustained move above 55,500 could push the index toward the 55,800–56,000 range, strengthening near-term momentum.

Investors are now closely watching upcoming inflation data from India and the US, along with domestic credit growth trends, as these factors are expected to influence future interest rate expectations and corporate earnings outlook.

With inputs from IANS