Equity markets in India continue to show resilience, achieving a remarkable third consecutive week of gains. The recent surge in optimism surrounding a potential bilateral trade agreement between India and the United States has significantly influenced investor sentiment. By the end of the week, the Sensex soared by 1,289.46 points, or 1.63%, concluding at 80,501.99—its highest weekly close above the 80,000 mark since December 13. Similarly, the Nifty index climbed 307.35 points, or 1.28%, finishing at 24,346.70.

Weekly Market Performance Highlights

The holiday-shortened week saw an impressive start, particularly on Monday, when the Sensex jumped 1,005.84 points (1.27%) and the Nifty rose by 289.15 points (1.20%). Following this strong opening, the indices traded sideways on Tuesday and Wednesday, while Thursday was a market holiday. Friday brought a mix of volatility and positivity, with the Sensex adding 259.75 points (0.32%) and the Nifty gaining 12.50 points (0.05%).

• Key Weekly Gains:
  • Sensex: +1,289.46 points
  • Nifty: +307.35 points
  • Investor wealth increased by ₹1.22 lakh crore.

Factors Driving Market Optimism

The positive market trajectory can be attributed to:

• Anticipation of a trade agreement with the US.
• Expectations of a rebound in corporate earnings as we approach FY26.
• A weakening US dollar and persistent concerns about inflation, which have encouraged Foreign Institutional Investors (FIIs) to maintain their buying activity in Indian markets.

Vinod Nair, head of research at Geojit Financial Services, noted the cautious optimism but also highlighted the reasons for moderated gains, including geopolitical tensions between India and Pakistan and mixed results from Q4 corporate earnings.

Broader Market Trends

Despite the overall bullish sentiment, broader markets experienced some profit-taking after a robust rally from April lows. The BSE Midcap Index saw a slight increase of 0.42%, while the BSE Smallcap Index faced a decline of 1.33% during the week.

Prashanth Tapse, senior VP (research) at Mehta Equities, explained that the recent surge led to profit-taking, resulting in a pullback in wider market segments amid ongoing global geopolitical concerns and trade disputes.

Investment Activity

Foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) were net buyers throughout the week, acquiring shares worth:

• ₹7,804 crore by FPIs
• ₹3,290.49 crore by DIIs

Sector Performance Overview

In terms of sector performance, energy, oil & gas, realty, capital goods, and automotive sectors emerged as the top performers, with gains reaching up to 3.79%. Conversely, sectors such as utilities, power, telecom, commodities, and consumer durables faced setbacks, with declines of up to 1.85%.

Notable Stock Movements

• Top Gainers:

  • Reliance Industries: +9.38%
  • Other gainers included Adani Ports, Maruti Suzuki, IndusInd Bank, and Eternal.
• Top Losers:
  • UltraTech Cement
  • Bajaj Finserv
  • Nestle India
  • Bajaj Finance
  • NTPC, with declines up to 4.85%.

As the market continues to navigate through a complex global landscape, investors remain hopeful for positive developments in trade and corporate earnings, keeping a close eye on the evolving geopolitical situation.