Indian stock markets ended the week on a cautiously optimistic note, driven by hopes of renewed foreign institutional investor (FII) inflows following the US Federal Reserve’s 25-basis-point rate cut.
Benchmark indices, Nifty and Sensex, recorded modest weekly declines of 0.36 per cent and 0.17 per cent, closing at 26,046 and 85,267, respectively.
Despite the marginal weekly losses, markets surged on the final trading day, with Nifty gaining 0.57 per cent, reflecting renewed investor confidence.
The week opened with subdued trading as the rupee weakened and global markets reacted to rising Japanese bond yields, creating uncertainty for investors.
Sustained FII outflows and ambiguity surrounding US-India trade negotiations also weighed on market sentiment.
However, the Fed’s rate cut alleviated liquidity concerns and encouraged optimism about foreign capital returning to Indian equities.
Analysts noted that supportive domestic investments, coupled with expectations of progress in trade discussions, helped benchmark indices end the week in a bullish frame.
Sectoral and broader market trends
While Nifty and Sensex maintained relative strength, broader indices underperformed. Nifty Midcap100 and Smallcap100 fell 0.51 per cent and 0.67 per cent, respectively.
Sectoral performance was uneven, with IT stocks under pressure, whereas PSU banks, real estate, and consumer durables attracted selective buying.
Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C Mehta Investment Intermediates, highlighted that Nifty’s weekly chart indicates strong buying interest at lower levels. He noted resistance levels at 26,200 and 26,325, with 25,700 acting as a key support zone.
Market experts caution that equities remain sensitive to rupee stability, FII flows, clarity on trade agreements, and cues from major central banks.
Nevertheless, improving earnings visibility and liquidity support provide a constructive backdrop, offering a degree of downside protection despite global uncertainties.
India’s Consumer Price Index (CPI) based inflation for November was estimated at 0.71 per cent, slightly above October’s 0.25 per cent, suggesting mild upward pressure but not derailing market optimism.
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