The broader indices erased some of the previous week losses and outperformed the main indices in the volatile week led by positive data points including PMI data, GST rationalizations, and supportive global markets.
For the week, the BSE Sensex index rose 901.11 points or 1.12 percent to finish at 80,710.76, while Nifty50 added 314.15 points or 1.28 percent to close at 24,741.
Among broader indices, BSE Largecap, Midcap and Smallcap indices rose 1.4 percent, 1.8 percent, 2.5 percent, respectively.
Selling from Foreign Institutional Investors (FIIs) continued 10th consecutive week, as they offloaded equities worth Rs 5,666.90 crore.
On the other hand, Domestic Institutional Investors (DII) continued their buying in 21th consecutive week, as they purchased equities worth Rs 13,444.09 crore.
Among sectors, BSE Metal index added nearly 6 percent, BSE Auto index rose 5.2 percent, BSE Consumer Discretionary index gained 3.6 percent, while BSE Information Technology index shed 1 percent.
"Indian equities opened the week on a strong note but gradually lost steam, ending subdued as optimism around GST rationalisation faded and global trade tensions resurfaced. The IT sector faced the sharpest pressure amid concerns of reduced discretionary spending, driven by economic uncertainty, elevated rates, and geopolitical risks. In contrast, consumer-focused sectors such as Auto and FMCG advanced, supported by expectations that GST cuts will boost domestic consumption and aid demand recovery," said Vinod Nair, Head of Research, Geojit Investments.
"Global bond markets added to the cautionary mood, with German and French 30-year yields hitting decade highs on rising debt and fiscal imbalances in the Eurozone. Domestically, persistent foreign outflows weighed on the rupee, which slipped to a record low against the U.S. dollar. Meanwhile, safe-haven demand pushed gold prices to all-time highs."
"Looking ahead, sentiment is likely to remain mixed. Domestic growth-linked sectors stand to benefit from GST relief, resilient consumption, and government spending, while uncertainty over global trade negotiations continues to restrain risk appetite. A multi-asset investment strategy is expected to gain traction in this environment. Market attention remains firmly on the upcoming U.S. jobs report, a key macro trigger that could shape expectations for a potential Fed rate cut. Also, investors will closely track key macro cues, including U.S. nonfarm payrolls, unemployment and inflation data, as well as the ECB’s rate decision, for direction in the week ahead," he added.
The BSE Small-cap index added 2.5 percent with Netweb Technologies India, One Mobikwik Systems, Jai Corp, Hemisphere Properties India, Vimta Labs, Atul Auto, Gujarat Mineral Development Corporation, Rategain Travel Technologies, Zydus Wellness rising between 20-39 percent.
Where is Nifty50 headed?
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Technically market action indicates turnaround in the market after a small downward correction of two sessions. We observe bullish pattern like higher highs and lows on the intraday timeframe chart (60 min).
The short-term trend of Nifty remains positive with volatility. Having recovered from near the support of 24600, Nifty is expected to advance towards the crucial overhead resistance of 25000 by next week. Immediate support is placed at 24600 levels.
Vinay Rajani, Senior Technical & Derivative Research Analyst, HDFC Securities.
The short-term trend turned bullish for the Nifty, as it achieved a level above 5, 10 and 20 DEMA. Any level above 25000 would confirm the bullish trend reversal and could lead to further short covering in the index.
On the downside, a level around 24500 would continue to serve as support.
Amol Athawale, VP Technical Research, Kotak Securities
Technically, 24,500/80400 remains a strong support zone for short-term traders. As long as the market trades above this level, the bullish setup remains intact. On the higher side, the 50-day SMA (Simple Moving Average) or 25,000/82000 would act as a crucial resistance zone for traders. A successful breakout above 25,000/82000 could push the market towards 25,200/82600.
Conversely, below 24,500/80400, market sentiment could change. If the index falls below this level, it is likely to retest 24,350/79900. Further downside may continue, potentially dragging the index to the 200-day SMA or 24,100/79400.
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