Markets End Week Higher On Gains In Banking, IT, And Pharma Stocks

Indian stock markets wrapped up the week on a positive note, supported by strong buying in banking, information technology, and pharmaceutical counters over the last two sessions.

Investor confidence stayed firm in the banking space after the Reserve Bank of India’s Monetary Policy Committee decided to keep the repo rate steady at 5.5 per cent.

Sentiment received an additional boost following the government’s move to invite private sector professionals to head the State Bank of India (SBI).

Pharmaceutical shares also gathered pace towards the week’s close after the US administration announced it would not impose tariffs on generic medicines, while signalling steps to reduce biotechnology links with flagged foreign firms, particularly those based in China.

Vinod Nair, Head of Research at Geojit Financial Services, stated, “Pharma stocks rallied as the US revived the Biosecure Act, aiming to cut biotech ties with flagged foreign firms, especially from China, providing a strong boost to Indian CDMOs. With the earnings season underway, investors are closely watching quarterly results for cues on market direction.”

Indices Extend Gains for Second Session

Earlier on Friday, the benchmark indices extended gains for the second consecutive session, aided by robust buying in pharma and banking stocks.

The Sensex opened lower at 82,075, slipping nearly 100 points due to weakness in IT shares, but quickly rebounded to touch an intra-day high of 82,654.

It finally settled at 82,501, up 329 points or 0.4 per cent. The Nifty 50 also mirrored the uptrend, reaching a high of 25,331 before ending 104 points higher at 25,285, also a 0.4 per cent rise.

Nair further asserted, “Investor sentiment improved after the government invited private sector professionals to lead the State Bank of India. This marks a broader policy shift towards allowing private participation in public sector enterprises, aimed at enhancing efficiency and governance.”

Over the week, the Nifty advanced 391 points, or 1.57 per cent, while the Sensex climbed over 1,000 points, or 1.35 per cent, reflecting broad-based optimism.

Hardik Matalia of Choice Equity Broking noted, “On the weekly chart, the index has formed a cup and handle pattern, and a decisive breakout of this formation, supported by increasing volumes, would signal the potential for further sustained upside.”

Sectorally, the Bank Nifty rose 1.84 per cent, Nifty IT jumped 4.8 per cent, and Nifty Pharma gained 2.12 per cent, together fuelling the week’s upward momentum across the broader market.

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