Indian stock markets ended the week on a positive note, with the Sensex gaining over 582 points, or 0.75%, and the Nifty 50 rising more than 127 points to settle at 24,334. The rally was driven by strong performances from major stocks like Tech Mahindra, Kotak Mahindra Bank, and TCS, despite declines in Sun Pharma and Bharti Airtel.
The upcoming week is expected to be influenced by several key factors, including the Q1 earnings season, where 256 companies are set to announce their results. Notable companies on the earnings calendar include Paytm, Bajaj Auto, and Infosys. Market sentiment remains optimistic, supported by encouraging Q1FY27 business updates.
Geopolitical tensions between Iran and the US have escalated, impacting global oil prices. Brent crude futures surged around 5% to $88.10 a barrel, while US WTI futures rose over 4% to $82.49. This rise in crude prices has contributed to the rupee's sharpest weekly decline since May, settling at 96.28 against the US dollar.
“The broader bias for the rupee remains weak as elevated crude oil prices and cautious foreign fund flows continue to weigh on sentiment.”
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities
Global tech stocks are under pressure, with a significant selloff in the US market. The Philadelphia SE Semiconductor Index fell over 20% from its June high, entering bear market territory. Despite this, the Indian market has shown resilience, attributed to its "anti-AI advantage."
Foreign institutional investors turned net sellers last week, withdrawing Rs 8,743.35 crore from Indian equities, while domestic institutional investors remained net buyers. This shift reflects cautious sentiment amid global uncertainties.
Background
The Indian stock market has been navigating a complex landscape of global and domestic factors. The recent rally in the Sensex and Nifty comes amid geopolitical tensions and a global tech selloff, highlighting the market's resilience.
Looking ahead, investors will focus on Japan's inflation data and India's PMI readings for insights into economic activity. The Indian market's strong macro fundamentals and resilient domestic demand may enhance its appeal among emerging markets.
