Markets End Week Strong: Nifty Gains 1% As India-Japan Summit Lifts Sentiment

Indian benchmark equity indices closed higher on Friday, extending weekly gains as investors cheered supportive global cues, softer crude oil prices, optimism over a more accommodative global interest rate environment and positive takeaways from the India-Japan Summit. The Nifty 50 ended above the 24,270 mark, while the Sensex also posted healthy gains, capping a nearly one per cent rise for the benchmark index over the week.

Global optimism, softer crude support market rally

The Nifty 50 gained 95.15 points, or 0.39 per cent, to settle at 24,270.85, while the BSE Sensex advanced 261.79 points, or 0.34 per cent, to close at 77,763.91. Over the course of the week, the Nifty rose nearly one per cent.

Market experts attributed the rally to improving global sentiment, easing crude oil prices and expectations of lower interest rates after softer-than-expected US labour market data.

Vinod Nair, Head of Research at Geojit Investments Limited, said the domestic markets ended higher as they were supported by "supportive global cues and growing expectations of a more accommodative global rate environment" following softer US labour market data.

He added that sentiment was also boosted by "positive outcomes from the India-Japan Summit and continued recovery in the IT sector," while noting that "softening crude oil prices remain a key macro tailwind" for the domestic economy.

Jateen Trivedi, Vice President, Research Analyst – Commodity and Currency at LKP Securities, echoed a similar view. He said markets were sustained by "supportive global cues and growing expectations of a more accommodative global rate environment," adding that "softening crude oil prices remain a key macro tailwind" for the domestic economy.

He also said the rupee strengthened by around 22 paise as a "weaker Dollar Index below 100.50 and easing FII selling pressure" supported the domestic currency.

Realty, IT and pharma outperform; PSU banks lag

Among sectoral indices, Nifty Realty emerged as the top performer, rising 2.19 per cent. Nifty IT gained 1.76 per cent, followed by Nifty Pharma at 1.72 per cent. Nifty Metal also ended higher with a 0.76 per cent gain, while Nifty Financial Services and Nifty FMCG edged up 0.18 per cent and 0.02 per cent, respectively. Nifty Private Bank closed largely unchanged.

On the downside, Nifty PSU Bank was the biggest loser, falling 1.54 per cent, followed by Nifty Media, down 0.45 per cent, and Nifty Auto, which slipped 0.44 per cent.

Among individual stocks, HCL Tech, Max Health, Sun Pharma and Dr Reddy's Laboratories were the top gainers on the Nifty, while Axis Bank, State Bank of India, Larsen & Toubro and Bajaj Auto ended among the biggest losers.

Investors eye Fed minutes and geopolitical developments

Despite the positive close, market participants remain watchful of global developments heading into next week.

Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the broader market trend "continues to favour the bulls," with benchmark indices holding above key support levels.

However, he cautioned that investors remain careful ahead of the weekend, with geopolitical developments in the US-Iran and Russia-Ukraine conflicts, along with the US Federal Reserve's meeting minutes next week, likely to influence global risk sentiment and the direction of the US dollar.

Meanwhile, Brent crude traded at USD 71.84 per barrel, up 0.06 per cent at the time of filing.

Asian markets also ended in positive territory. South Korea's KOSPI surged 5.44 per cent, Japan's Nikkei 225 gained 1.31 per cent, Hong Kong's Hang Seng advanced 0.99 per cent, Singapore's Straits Times rose 0.52 per cent and China's Shanghai Composite added 0.36 per cent.

Gold prices also climbed amid safe-haven demand, with spot gold rising 1.38 per cent to USD 4,179.84 per ounce.

(With inputs from ANI)