Indian equity benchmarks ended marginally higher on Friday, extending their recovery for a second consecutive session, even as elevated crude oil prices and rising global bond yields capped market gains. The Sensex added 3.11 points to settle at 77,540.83, while the Nifty 50 rose 20.15 points, or 0.08 per cent, to close at 24,252.
Despite the two-day pullback from recent lows, the Nifty ended the week 0.47 per cent lower, marking its second consecutive weekly decline. The Sensex shed 460 points over the same period. The session's tone was set early as the Nifty opened 53 points higher but spent most of the day locked in a narrow 60-point band, reflecting a lack of directional conviction.
External pressures persisted as Brent crude climbed above $93 a barrel, on pace for a weekly gain of over 5 per cent amid an intensified US-Iran standoff. The UAE further suspended all financial and economic transactions with Tehran after accusing Iran of launching ballistic missiles at its territory. Domestic crude futures remained above ₹8,200.
Among Nifty 50 constituents, Power Grid and HDFC Life emerged as the top gainers, while Trent, Maruti Suzuki, and IndiGo were the major laggards. Sectorally, Nifty Metal gained 1 per cent, supported by a rise in LME zinc and broader metal prices, and the Nifty CPSE index also ended in the green. Conversely, Auto, FMCG, IT, and Media were among the sharpest decliners for the session. For the week, FMCG and IT indices lost over 2 per cent, while the Capital Market index led sectoral gains by rallying 2.55 per cent.
The broader market fared relatively better. The Nifty Midcap 100 rose 0.10 per cent, and the Nifty Smallcap 100 gained 0.69 per cent, breaking out of a consolidation range held since August 6 to close above the 19,937 upper boundary. However, market breadth remained weak, with 272 of the Nifty 500 stocks ending in the red and an advance-decline ratio of 1.08.
The Indian rupee held largely steady at 95.71 against the US dollar, supported by a softer dollar and easing US Treasury yields, though elevated crude prices and sustained importer demand limited further appreciation. Meanwhile, domestic gold climbed around 4 per cent for the week to ₹1,61,600, with COMEX Gold approaching $4,585, supported by declining bond yields after the US Treasury announced quarterly bond buybacks.
In corporate developments, Welspun Corp secured a record $1.8 billion US pipe order, representing the largest in the company’s history and bringing its global order book to $4.4 billion. Market observers noted that geopolitical tensions impacting crude import bills are concurrently driving US energy infrastructure investments.
Looking ahead, technical indicators show the Nifty holding above its 50-day and 100-day EMAs near 24,200, while staying below the 20-day EMA at 24,300 and the 200-day EMA at 24,376. Market participants will continue to monitor monsoon progression, foreign institutional investor flows, crude prices, and global bond market developments in the coming week.
"The recent market movement highlights the delicate balance between domestic value buying and external macroeconomic pressures. While corporate highlights such as Welspun Corp's record US order demonstrate resilience in specific sectors, broader market momentum remains closely tied to global crude prices, geopolitical tensions, and FII flows. Investors should maintain a disciplined approach, keeping a close watch on key technical support levels and evolving macroeconomic triggers." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
