Indian equity benchmarks rose for three consecutive days this week before retreating marginally as investors book profits after markets touched a two-month high. The gains follow renewed India-US trade talks and a cut in US Federal Reserve rates.
Benchmark indices Nifty and Sensex end the week with gains of around 0.85 per cent and 0.89 per cent, respectively, even as IT and FMCG counters face selling pressure.
Midcap and small-cap indices close marginally higher. PSU banks extend their rally, with the Nifty PSU Bank Index climbing over 1 per cent.
Adani Group Stocks See Strong Buying
Shares of the Adani Group witness robust buying after SEBI dismisses allegations made by Hindenburg Research. Adani Enterprises surges 6 per cent, while Adani Green Energy, Adani Energy Solutions, Adani Power Ltd, and AWL Agri Business Ltd register gains of up to 12 per cent.
Technically, Nifty forms a bearish candle on the daily chart but shows a longer lower shadow, indicating smart buying at lower levels.
On the weekly frame, it forms a bullish candle and records higher lows for the past three weeks. Since the August lows, benchmark indices have advanced nearly 4 per cent.
Analysts note that GST rationalisation, set to take effect next week, and festive demand strengthen investor focus on consumption-driven sectors.
Investors also monitor key US macro indicators, including GDP, jobless claims, and core inflation, for guidance on the Fed’s policy trajectory. On the domestic front, the upcoming manufacturing PMI serves as a barometer of industrial sentiment and early signs of demand revival.
Meanwhile, US equities hit fresh record highs, with the Dow, S&P 500, Nasdaq, and Russell 2000 rising by 1 per cent after the Federal Reserve resumes its rate-cutting cycle.
The FOMC reduces the target Fed Funds rate by 25 basis points. Median projections indicate US real GDP growth at 1.6 per cent year-over-year in 2025, unemployment at 4.5 per cent, and core PCE inflation at 3.1 per cent.
Also Read: Adani Group Shares Rally As Investors Gain ₹46,000 Crore In Single Day
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