Key Highlights

  • Streak over: Nifty gained 0.44% and Sensex 0.78% this week, ending eight straight weeks of losses.
  • Friday surge: Nifty rose 1.30% to 22,520; Sensex jumped 879 points to 72,472.
  • The trigger: Crude eased after Donald Trump said the US would refrain from military action against Iran before the November midterms.
  • Rupee recovers: Up 5 paise to 96.71 per dollar after three days of weakness.
  • Still cautious: High bond yields and foreign selling keep analysts wary.

Indian markets ended the week higher for the first time in more than two months. Nifty gained 0.44% for the week and Sensex 0.78%, snapping an eight-week losing streak.

On Friday alone, Nifty jumped 1.30% to 22,520, while Sensex rose 879 points, or 1.23%, to 72,472, recovering sharply after a heavy sell-off in the previous session.

A Roller-Coaster Week

Day What drove the market
Monday Relief rally after eight losing weeks; softer US jobs data
Tuesday Gains extend; FII selling eases
Wednesday RBI raises repo rate 25 bps to 5.50%; markets slip
Thursday Sharp sell-off
Friday Strong rebound as crude eases

Why It Matters: Crude Was the Swing Factor

The week’s recovery came down largely to oil. After US President Donald Trump said the US would refrain from military action against Iran ahead of the November midterm elections, crude prices eased and global risk appetite improved. For India, which imports most of its oil, cheaper crude helps on inflation, the rupee and corporate costs.

The rupee benefited too, gaining 5 paise to close at 96.71 against the dollar after three sessions of weakness, with the RBI also likely intervening to support it.

Sectors and Breadth

IT led the recovery, helped by a positive quarterly result, while banking, FMCG and auto also saw buying. Mid- and small-caps joined in: Nifty Midcap100 rose 0.09% and Smallcap100 0.44% for the week. Friday’s advance–decline ratio improved to 1.35, a sign of renewed interest after a steep correction, though NSE cash turnover fell 14%.

Not Out of the Woods

Analysts urged caution. Elevated bond yields and continued foreign fund outflows still weigh on sentiment. “Participants should remain selective, maintain disciplined position sizing and favour a hedged approach amid elevated macroeconomic and earnings-related uncertainty,” a market participant said.

Key Levels for Next Week

Nifty level
Support 22,200–22,300
Resistance 22,700–22,800

What to Watch

  • More Q2 earnings, especially from IT and banks
  • Crude prices and US–Iran developments
  • Foreign investor flows and the rupee

The Bottom Line

After a rate hike and two months of losses, one green week is a relief, not a turnaround. Whether it lasts depends on crude, foreign flows and the earnings season ahead.

With inputs from IANS.