Mumbai: Indian benchmark indices closed the week with modest gains despite high volatility and sharp daily swings.
The Sensex ended 0.23 per cent higher at 75,415.35, while the Nifty gained 0.32 per cent to settle at 23,719.30.
Market sentiment remained cautious due to mixed global signals, rupee weakness, inflation concerns and uncertainty over interest rates.
RBI Dividend In Focus
The biggest trigger for markets next week is likely to be the Reserve Bank of India’s massive dividend transfer to the central government.
Reserve Bank of India announced a record surplus transfer of Rs 2.87 lakh crore to the government for FY26.
Experts believe the higher dividend payout may improve government finances and support liquidity in the economy. This could provide positive support to equity markets in the short term.
Middle East Tensions May Impact Sentiment
Global geopolitical developments will also remain closely watched by investors.
Reports suggest that talks between the United States and Iran are moving closer to a possible agreement aimed at reducing tensions in West Asia.
However, uncertainty around the situation may continue to create volatility in global financial markets.
Crude Oil Prices Remain Important
Crude oil prices are another major factor likely to influence Dalal Street.
Brent crude prices ended at $103.54 per barrel, while US West Texas Intermediate crude closed at $96.60 per barrel.
Higher crude oil prices are usually seen as negative for India because the country imports a large portion of its oil needs. Rising oil prices can increase inflation and put pressure on the rupee.
FIIs And Rupee Movement To Be Watched
Investors will also monitor foreign institutional investor (FII) activity and movement in the Indian rupee.
Continued foreign selling and rupee weakness could keep market volatility high in the coming sessions.
Global economic data and central bank signals from major economies are also expected to influence investor sentiment.
