Indian equity markets closed the week on a positive note, driven by expectations of robust domestic demand, favorable liquidity prospects, and optimism regarding potential Fed policy adjustments in 2026. The Sensex concluded at 85,041.45, down 367.25 points or 0.43%, while the Nifty settled at 26,042.30, marking a decline of 99.80 points or 0.38%. Market analysts noted that the trading week, shortened due to holidays, started with a bullish tone but saw a slowdown in momentum as it progressed.
Sectoral movements were varied, with some profit-taking observed in several segments, although metals, FMCG, and media stocks displayed resilience. Nifty 50 maintained its position above the 20-day EMA cluster, respecting its long-term rising channel on the daily chart, indicating a positive bias as long as it remains above the 26,000–25,900 support zone. The market also witnessed RBI’s liquidity measures supporting the rupee against persistent FII outflows.
Gold prices rose due to safe-haven demand, while crude oil prices remained low. However, the potential impact of US actions to tighten restrictions on Venezuelan oil shipments could lead to upward pressure in the short term. Analysts cautioned that market sentiment might stay cautious as investors prepare for the upcoming earnings season and monitor global developments and currency fluctuations. Attention is expected to shift to key data releases next week, including India’s industrial and manufacturing output figures, manufacturing PMI, and the US FOMC minutes.
