Mumbai: Indian stock markets ended the week on a strong note as lower crude oil prices, a stronger rupee and positive domestic economic data boosted investor confidence.
The benchmark indices posted healthy weekly gains even though Friday’s session ended with only modest advances. The rally reflected improving sentiment after global energy prices cooled and concerns over inflation eased.
The Nifty gained 2.59% during the week and closed 0.27% higher on the final trading day at 24,383.
The Sensex rose 166 points, or 0.21%, on Friday to end at 78,094. For the week, the index climbed 2.68%.
What Drove The Rally
Lower crude oil prices played a major role in supporting the market. Softer energy prices reduced worries about inflation and improved the outlook for businesses and consumers.
The Indian rupee also remained firm during the week. Market experts said a shift in global investment flows improved the chances of foreign investors putting more money into Indian equities.
Positive domestic factors also supported the rally. Better-than-expected industrial production (IIP) data, favourable monsoon progress and encouraging corporate earnings strengthened investor confidence.
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Sector Performance
The rally was broad-based, with large-cap shares leading the gains.
Metal and automobile stocks emerged as the top performers as easing energy costs and an improving global outlook supported these sectors.
Technology stocks witnessed some pressure towards the end of the week due to a rebound in global chipmaker shares. However, the sector still finished the week with solid gains as investors found valuations attractive.
The broader market also remained strong. The Nifty Midcap100 advanced 2.10%, while the Nifty Smallcap100 gained 2.46% during the week.
What Investors Will Watch
Market participants said the rally could continue if global uncertainties ease further and crude oil prices remain stable.
In the coming week, investors will closely watch the Reserve Bank of India’s monetary policy decision and the Purchasing Managers’ Index (PMI) data for fresh signals on economic growth and inflation. US labour market data will also remain an important global trigger
