Sensex, Nifty End Higher As Falling Crude Prices Boost Market Sentiment

Indian equity benchmarks posted notable gains during the week as easing crude oil prices and reports of indirect US-Iran talks improved market sentiment.

The Nifty gained 0.32 per cent during the week and rose 0.27 per cent on the final trading session to settle at 23,719. The Sensex closed 231 points, or 0.31 per cent, higher at 75,415, advancing 0.24 per cent during the week.

Analysts said that despite the rebound, investors remained cautious, with limited conviction at higher levels restricting further upside momentum.

The IT sector emerged as the top performer, supported by attractive valuations after the recent correction.

Realty, cement and private banking stocks also remained resilient during the week.

FMCG and consumer durable stocks underperformed due to concerns surrounding wholesale price index pass-through pressures on margins.

Broader markets outpaced benchmark indices, with the Nifty Midcap100 rising 1.36 per cent and the Nifty Smallcap100 gaining 0.41 per cent during the week.

The rupee also found support as crude prices witnessed a modest pullback amid ongoing diplomatic efforts to ease tensions in West Asia.

Analysts noted that fears of tighter monetary policy and higher input inflation pushed domestic bond yields upward.

The US 30-year Treasury yield climbed to its highest level since 2007, reflecting concerns over persistent inflation, elevated energy prices and macroeconomic uncertainty.

Market participants said the Nifty 50 faces strong resistance in the 23,800–24,000 range, while the 23,400–23,300 zone remains crucial support.

For Bank Nifty, resistance is placed near 54,200, with immediate support around 53,600–53,500.

Foreign institutional investors remained net sellers during the week, with cumulative outflows estimated at around Rs 7,570 crore.

Investors are now closely tracking India’s April IIP data, the RBI’s June policy decision and US core PCE data for further market direction.

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