Mumbai: Indian stock markets ended the week on a strong note, snapping a two-week losing streak as investor sentiment improved on hopes of a possible peace agreement between the US and Iran.
The benchmark Nifty 50 gained 1.10 percent during the week and closed at 23,622 after rising 1.99 percent on Friday. The BSE Sensex climbed 1.73 percent for the week and surged 1,695 points, or 2.30 percent, on the final trading day to settle at 75,527.
Global Factors Support Recovery
Market experts said Indian equities showed resilience despite several global uncertainties.
Optimism surrounding a potential US-Iran peace pact helped reduce concerns over geopolitical tensions. At the same time, a decline in Brent crude oil prices improved investor confidence, as lower oil prices are generally positive for India's economy.
Although concerns remain over the future course of US interest rates, easing US bond yields provided some support to global markets.
Financial Stocks Lead Gains
Among sectors, financial stocks emerged as the biggest gainers during the week. Private banks attracted buying interest after favourable regulatory developments and a shift by investors towards safer sectors.
FMCG shares also performed well on expectations that companies would maintain pricing power and stable demand.
However, the IT sector remained under pressure due to concerns over global growth and technology spending. Metal stocks also witnessed weakness as commodity prices softened and demand expectations from China remained subdued.
DII Buying Offsets FII Selling
Foreign Institutional Investors (FIIs) continued to sell Indian equities during the week, with net outflows of around Rs 15,300 crore.
However, strong buying by Domestic Institutional Investors (DIIs) helped support the market. DIIs invested nearly Rs 24,000 crore during the week, offsetting much of the foreign selling pressure.
Broader Market and Key Levels
Broader market indices also ended higher. The Nifty Midcap100 rose 0.98 percent, while the Nifty Smallcap100 gained 0.48 percent during the week.
Analysts expect the Nifty to face resistance near the 23,800 level, while immediate support is seen in the 23,550-23,500 zone.
Investors will now closely track India's Wholesale Price Index (WPI) inflation data, China's industrial output numbers and the upcoming US Federal Reserve policy decision for further market direction.
