The Indian stock market closed the week on a positive note, buoyed by optimism surrounding US-Iran peace talks. Supported by a stronger rupee and lower crude oil prices, traders showed upbeat sentiment, leading to widespread buying across various sectors. The Sensex rose by 504.86 points to settle at 78,493.54, while the Nifty gained 156.80 points to close at 24,353.55 on Friday.
Buying interest was evident across most sectors, with the market maintaining a positive trend, as noted by Bajaj Broking Research. Notable gains were seen in Nifty FMCG, Metal, and Oil and Gas indices, which saw increases ranging from 1% to 3%, while Nifty IT lagged behind. The broader market outperformed the benchmarks, with Nifty Midcap rising around 1.27% and the small-cap index advancing approximately 1.48%.
Indian equity markets witnessed a steady recovery during the week, supported by improved global sentiment and a decline in crude oil prices. While caution prevailed, indices closed with significant gains, driven by consistent buying and a gradual increase in risk appetite. Analysts noted a shift towards a cautiously optimistic outlook, with softer crude prices and stable global cues aiding the recovery.
Foreign institutional investors showed signs of stabilization after a period of outflows, turning net buyers in the final sessions of the week. Despite marginal negative flows for the week, their role in stabilizing the market remains crucial. Domestic institutional investors, on the other hand, turned net sellers in the final sessions, reflecting profit-taking at higher levels. Despite this short-term shift, their overall support remains intact, providing structural backing to the market.
