Business

Markets Soar Past Milestone As Institutional Inflows Fuel Broad Rally

The Indian stock markets ended last week on a strong footing, surging past key resistance levels, with analysts attributing the move to consistent institutional buying.

On Friday, the Nifty 50 decisively closed above the psychologically important 25,000 mark, reinforcing bullish momentum.

The Sensex surged by 1,046.30 points, or 1.29%, to hit a new all-time high of 82,408.17, while the Nifty 50 gained 319.15 points, also 1.29%, to settle at 25,112.40.

Bajaj Broking Research noted, “Relentless inflows from institutional investors — both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs)—acted as key tailwinds, offsetting headwinds from prevailing geopolitical uncertainties and reinforcing positive sentiment across the street.”

The Nifty formed a strong bullish candlestick pattern with both a higher high and higher low, signalling a continuation of its upward trajectory following a recent consolidation phase.

The index’s firm close above 25,000 underscored market strength.

“Going forward, we anticipate the index to retest the upper boundary of the recent five-week consolidation zone, currently pegged near the 25,200 mark. A decisive breakout above this resistance band could open the door for an upward extension towards the 25,500 zone in the near term, the note added.

Markets shake off geopolitical jitters and oil price spike

Markets largely brushed aside midweek jitters caused by rising tensions in the Middle East and a temporary spike in crude oil prices.

Financial stocks received a boost from the Reserve Bank of India’s move to ease project financing guidelines.

Vinod Nair, Head of Research at Geojit Investments Ltd, stated, “The RBI’s continued dovish tone — signalling potential rate cuts on validating subdued inflation — further reinforced market confidence, positioning monetary policy as a key stabilising force amid global uncertainty.”

While oil prices surged early in the week due to geopolitical unrest, the pace of increase moderated, reducing fears of prolonged inflationary pressure.

Investor outlook for pharmaceutical stocks turned cautious after reports of potential new tariffs targeting the sector.

With the 90-day period for reciprocal tariff discussions nearing its end, markets are closely monitoring trade developments and deal activity expected in the coming weeks.

Nair added, “Meanwhile, geopolitical uncertainty continues to loom, as statements from world leaders regarding possible military involvement in the Middle East keep markets on edge. Investors will also keep a close eye on upcoming U.S. GDP and PCE data, along with India’s PMI figures, for cues on the strength and direction of economic recovery at home and abroad.”

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Mankrit Kaur

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