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Indian equity benchmarks ended lower for the sixth consecutive week as continued foreign institutional investor (FII) selling and concerns over prolonged high interest rates kept investors cautious.
The Nifty fell 0.22% during the week but gained 0.33% on Friday to close at 23,346. The Sensex declined 19 points, or 0.03%, on the final trading day to end at 74,294, recording a 0.65% weekly fall.
Indian equities started the week on a weak note but recovered partially as crude oil prices eased from recent highs.
Analysts said lower energy inflation concerns helped support bond yields and provided some relief to equity valuations.
However, policy guidance from major central banks continued to indicate a tighter monetary stance, keeping expectations of a prolonged high-rate environment intact. Persistent FII selling also weighed on the rupee and limited the market’s recovery.
Mid- and small-cap stocks outperformed large caps as investors shifted towards domestically focused companies with stronger earnings visibility, healthy order books and solid balance sheets.
Among sectors, healthcare and FMCG attracted buying due to their defensive earnings profiles and strong domestic demand.
Realty and metals also performed well on Friday, while the IT sector remained under pressure, with the Nifty IT index falling around 1%.
Mid- and small-cap IT stocks declined during the week amid concerns over global technology spending.
Consumer durable stocks also faced pressure due to weaker discretionary demand and persistent pricing concerns.
For the Nifty, the 23,000–23,100 range remains an immediate support zone, while 23,400–23,600 is seen as the key resistance area.
Investors will track domestic credit growth and PMI data next week for signs of underlying economic activity.
US initial jobless claims and comments from Federal Reserve officials will also influence expectations around interest rates and global liquidity.
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