Sensex, Nifty log best weekly gains in over two years, financials lead the charge

Broader market participation remained strong. The Nifty Midcap and Smallcap 100 indices rose 0.65 and 0.4 percent, respectively.

Indian equities ended the week on a high, logging their biggest weekly gains in over two years, supported by strong buying across sectors and a sharp rebound in banking stocks. The Sensex, Nifty, and Nifty Midcap 100 each surged over 4 percent during the holiday-shortened week, while the Nifty Bank stood out with a 6 percent jump—its best weekly performance in nearly two years.

The momentum carried into April 17 as benchmark indices extended their winning streak to a fourth session. The Sensex closed 1,509 points higher at 78,553, and the Nifty surged 414 points to 23,852, reclaiming the 23,800 level. This marks the highest close for both indices in over three months, with the Nifty Bank hitting a seven-month high and recording its second-highest closing level ever.

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Financials were at the heart of the rally. The Nifty Bank index jumped more than 2 percent in the day, driven by heavyweights like HDFC Bank and ICICI Bank ahead of their Q4 earnings due April 19. Out of the 50 Nifty stocks, 44 closed in the green, with Eternal, ICICI Bank, and Sun Pharma among the top gainers.

Broader market participation remained strong. The Nifty Midcap and Smallcap 100 indices rose 0.65 and 0.4 percent, respectively. All sectoral indices ended the day in positive territory except IT, which edged down 0.35 percent due to Wipro’s cautious outlook. Realty, Auto, Pharma, Oil & Gas, and PSU Bank indices gained over a percent each.

Ruchit Jain, Vice President of Technical Research at Motilal Oswal, said the rally is not just a short-term bounce but a broad-based uptrend. “The Bank Nifty is trading close to its all-time high, reflecting strong sectoral support. This rally is backed by large-cap participation and a visible shift in market structure with higher highs and higher lows—something we haven’t seen since October.”

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Foreign institutional investors have returned to the cash market in recent sessions. Though their futures positioning remains short-heavy—long-short ratio at 28 percent—Jain expects they may begin covering shorts, adding further momentum.

On the macro front, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said India stands to benefit from the global trade landscape. “India, being a consumption-led economy, is likely to be among the least affected by the ongoing tariff disputes. The US considers India a key ally and is expected to prioritise trade deals with countries like the UK, Japan, South Korea, and India. If that materialises, India could gain from the US-China trade war.”

"The index witnessed a spectacular rally, with the Nifty moving above the previous swing high on a closing basis. This recent sharp rally has pushed the index above the 100 EMA on the daily chart, suggesting a midterm positive trend. In the short term, we expect the rally to extend further, potentially taking the Nifty towards 24,100. A move above 24,100 could open the path for a rise towards 24,500. On the downside, support is placed at 23,650 and 23,300," Rupak De, Senior Technical Analyst at LKP Securities, said.