Markets Rebound Strongly: Sensex Soars 1,695 Points, Nifty Gains Over 1% This Week

Mumbai: Indian benchmark indices snapped a two-week losing streak and ended the week with healthy gains, buoyed by optimism surrounding a possible US-Iran peace agreement and a decline in global crude oil prices.

The Nifty 50 rose 1.10 per cent during the week and surged 1.99 per cent on the final trading session to close at 23,622. The Sensex climbed 1,695 points, or 2.30 per cent, on the last trading day to settle at 75,527, taking its weekly gain to 1.73 per cent.

Despite global uncertainties and concerns over the US Federal Reserve's interest-rate outlook, Indian equities displayed resilience. Analysts noted that large-cap stocks led the recovery, while mid- and small-cap segments witnessed some profit booking after their recent rally.

Global sentiment remained mixed as easing US bond yields offered support, but sticky inflation and a strong labour market in the United States continued to fuel expectations that interest-rate cuts could be delayed.

Market experts said Indian equities largely traded within a narrow range through the week before staging a recovery towards the close.

Domestic bond yields also softened, aided by the Reserve Bank of India's liquidity-support measures and continued foreign investment into debt markets.

Among sectors, financial stocks emerged as the biggest gainers. Private banks attracted investor interest following favourable regulatory developments and a shift towards defensive sectors. FMCG shares also advanced on expectations of sustained pricing strength.

On the other hand, IT stocks remained under pressure, while metal shares lagged due to weaker commodity prices and concerns over slowing demand from China.

Foreign institutional investors (FIIs) continued to sell Indian equities, offloading shares worth around Rs 15,300 crore during the week. However, the pace of selling eased in the latter half of the period.

Domestic institutional investors (DIIs) provided strong support to the market, recording net purchases of approximately Rs 24,000 crore.

The broader market largely mirrored benchmark performance. The Nifty Midcap100 index gained 0.98 per cent during the week, while the Nifty Smallcap100 rose 0.48 per cent.

Technical analysts believe the Nifty faces a key resistance zone around 23,800, while immediate support is seen in the 23,550–23,500 range. For the Bank Nifty, resistance is placed between 56,900 and 57,000, with support around the 56,500–56,400 zone.

Going forward, investors will closely track key economic indicators, including India's Wholesale Price Index (WPI) inflation data, China's industrial output figures, and the upcoming US Federal Reserve policy decision, all of which could influence market direction in the coming weeks.
 

With inputs from IANS

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