The Indian equity benchmarks posted a third consecutive week of gains, over sharp correction in crude oil prices to pre‑Iran war levels and improved traffic at the Strait of Hormuz
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MUMBAI — The Indian equity benchmarks posted a third consecutive week of gains, over sharp correction in crude oil prices to pre‑Iran war levels and improved traffic at the Strait of Hormuz.
Nifty added 0.18 per cent during the week and edged up 0.14 per cent on the last trading day to reach 24,056. At close, Sensex was up 109 points or 0.14 per cent at 77,100. It added 0.39 per cent during the week.
The domestic markets navigated a week of mixed signals with notable resilience, even as broader indices, especially mid-caps, faced modest selling pressure.
Easing geopolitical risks amid progressing US–Iran talks, and optimism around an India–US trade deal, helped fuel domestic investor sentiment.
However, expectations of rising inflationary pressure and a potential dampening in rural demand began to surface, driven by concerns over uneven monsoon distribution, an analyst said.
Sustained softness in crude prices remains a clear macro positive in the near term along with improving inflation, fiscal, and current account dynamics collectively providing the RBI with greater policy flexibility.
On the sectoral front, pharma and healthcare stocks outperformed, while private banks advanced following the RBI's clarity on the FCNR(B) deposit swap scheme.
Metals were major loser due to falling commodity prices, while consumer durables lagged amid demand concerns.
Broad market indices showed divergence with benchmark indices, as Nifty Midcap100 lost 1.15 per cent, while Nifty Smallcap100 edged up just 0.03 per cent during the week.
Immediate resistance levels for Nifty are placed at 24,400 and 24,500, and support is seen at 23,900 and 23,800.
Immediate support for Bank Nifty is placed in the 57,500–57,400 zone, while resistance is seen at 58,900 and 59,000.
As corporate earnings reports are expected in the coming weeks, management commentary on demand visibility, margins, and order flows will serve as key indicators for market direction.
"A prudent yet optimistic stance is warranted, with a focus on selectively building positions in fundamentally strong companies that have seen recent corrections without any meaningful deterioration in their underlying outlook," a market participant said.
Investors remain keen on US PCE data that will shape global, along with non-farm payrolls and unemployment figures, which will influence Fed rate expectations and overall risk appetite.
Domestically, industrial production data and June PMI readings will provide early signals ahead of Q1 earnings season, according to analysts.