The Indian stock markets ended the week nearly unchanged, driven by positive sentiments surrounding Q3 earnings and renewed discussions on India-US trade. However, concerns lingered due to escalating geopolitical tensions. Sectors like pharma, consumer durables, and autos faced profit-booking pressure, while PSU banks and metals performed well. Nifty saw a marginal 0.04% increase for the week, touching 25,694, while the Sensex closed 0.23% higher at 83,570 on the last trading day.
Analysts noted that investor focus remained on Q3 earnings, particularly in the IT and banking sectors, which provided confidence in growth prospects. Geopolitical uncertainties led to risk aversion among Foreign Institutional Investors (FIIs) in emerging markets, impacting bond yields. Notably, the IT sector garnered attention after a leading player raised its revenue guidance, signaling positive growth trends in the broader IT segment.
Encouraging results in the banking sector, with improvements in asset quality and earnings performance, further bolstered market sentiment. These developments set an optimistic tone for the Q3 FY26 earnings season, reinforcing investor trust in the recovery of domestic earnings. Bank Nifty closed on a positive note, forming a bullish candlestick pattern, while the Relative Strength Index (RSI) indicated strength with a bullish crossover, currently near 61.
During the week, broader market indices outperformed the benchmarks, with Nifty Midcap 100 rising by 0.20% and Nifty Smallcap 100 by 0.46%. Investors are closely monitoring the US Supreme Court’s upcoming ruling on the legality of President Donald Trump’s tariffs, although the exact timeline remains uncertain. Additionally, global macro indicators such as US PCE inflation and GDP data are being watched for insights into the Federal Reserve’s future rate decisions.
