Sensex, Nifty rally for a third week, powered by FPIs and RIL's best week five years

Today, Adani Ports, Bajaj Finance, IndusInd Bank, Reliance Industries, and SBI were the top gainers on the Nifty.

The Indian stock market extended its winning streak for a third straight week, marking its longest stretch of weekly gains since December 2024. Benchmark indices Sensex, Nifty, and Nifty Bank each rose around a percent over the week, supported by strong performances in oil & gas and banking names.

The broader market lagged slightly, with the Nifty Midcap index rising a modest 0.3 percent for the week. Oil & gas stocks stole the spotlight, with Reliance Industries leading the charge, and staging a 10 percent rally during the week, its best week in five years, becoming the top index gainer on strong earnings.

"The surprising resilience of the market has been primarily driven by sustained FII buying for eleven trading sessions in a row, taking the cumulative FII inflow during this period to Rs 37,375 crore. This has been supported by weakness in the dollar and declining growth prospects in the US," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "Other positives include declining interest rates in India, a drop in crude prices, and green shoots of demand recovery. The high probability of India being among the five ‘allies’ of the US to enter early trade deals is also a significant boost," he added.

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Other prominent gainers included Maruti Suzuki, Bharat Electronics, SBI Life, IndusInd Bank, and HDFC Life, while Shriram Finance, JSW Steel, UltraTech Cement, and Bajaj Finserv were among the key laggards.

On Friday, however, the indices ended on a mixed note, with midcaps underperforming larger peers. The Sensex closed 260 points higher at 80,502, and the Nifty added 13 points to end at 24,347. The Nifty Bank index edged up by 28 points to 55,115, but the Nifty Midcap 100 fell 420 points, or 1 percent, to 53,705. Weakness in midcaps was evident throughout the session, pulling the market breadth toward an even advance-decline ratio.

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Sectorally, the auto pack came under pressure following April sales data, with Bajaj Auto and Eicher Motors shedding around 2 percent each. JSW Steel was another notable loser, slipping 6 percent after the Supreme Court rejected Bhushan Power and Steel’s resolution plan, dealing a setback to the company’s acquisition hopes.

Technical View

"We are of the view that 24,200 for the Nifty and 79,900 for Sensex would act as a sacrosanct support zone for trend-following traders. Above this level, the market could continue its positive momentum up to 24,600–24,800/81,000-81,700," said Amol Athawale, Vice President of Technical Research at Kotak Securities, said. "On the flip side, below 24,200/79,900, the uptrend would become vulnerable. Falling below this level, the chances of hitting the 200-day SMA or 24,050/79,500 would increase. Further downside may also continue, potentially dragging the index down to 23,900/79,000," he added.

On Friday, Adani Ports, Bajaj Finance, IndusInd Bank, Reliance Industries, and SBI were the top gainers on the Nifty. JSW Steel, Bajaj Auto, Nestle, Eicher Motors, and Hero MotoCorp were among the top laggards.