Mumbai, Aug 1 — Indian equity benchmarks recorded strong weekly gains as a decline in crude oil prices helped ease global inflationary concerns.

The Nifty advanced 2.59 per cent over the week and closed 0.27 per cent higher on the final trading day at 24,383. The Sensex rose 166 points, or 0.21 per cent, on the last session to finish at 78,094, adding 2.68 per cent for the week.

The recovery was broad-based, with large-cap stocks outperforming the wider market. On a sectoral basis, metals and automobiles led the advance, supported by an improving global outlook and lower energy costs. Domestic technology stocks faced late-week pressure from a rebound in global chipmakers but still ended the week with solid gains, aided by attractive valuations.

Easing inflationary concerns linked to the correction in crude prices improved overall market sentiment, analysts noted. While the US Federal Reserve’s decision to keep interest rates unchanged was largely in line with expectations, its accompanying commentary retained a hawkish tone, signalling that policy settings could remain restrictive if inflation does not move sustainably towards the target.

The Indian rupee strengthened during the week after the unwinding of the crowded global AI trade improved the outlook for foreign inflows into India’s diversified equity market. Domestically, strong Index of Industrial Production data, improving monsoon conditions and encouraging corporate earnings further supported investor confidence.

Market participants cautioned that the recovery’s sustainability will depend on a continued easing of global uncertainties that can stabilise crude oil prices, as well as a broadening of earnings growth beyond a limited set of sectors.

Broader market indices moved in line with the benchmarks. The Nifty Midcap100 rose 2.10 per cent and the Nifty Smallcap100 advanced 2.46 per cent over the week.

In the coming days, the Reserve Bank of India’s policy decision and PMI releases are expected to provide further cues on growth and inflation trends. Investors will also monitor US labour market data for additional signals.