India's equity markets extended their winning streak to a fourth consecutive session on Friday, with benchmark indices - the BSE Sensex and NSE Nifty - scaling a nine-month high. The rally was fueled by easing geopolitical tensions following the Israel-Iran ceasefire and optimism over a potential delay in US tariff deadlines. Sentiments received a further boost after US President Donald Trump hinted at a possible trade deal with India.
The Sensex advanced 303.03 points or 0.36% to settle at 84,058.90 on Friday, while the Nifty50 added 88.80 points or 0.35% to end at 25,637.80, marking its highest level since October 1st, 2024. On a weekly basis, both frontline indices logged gains of over 2%. The broader markets outperformed, with the Nifty Midcap 100 and Smallcap 100 extending their winning streak to six consecutive sessions. The midcap index rallied more than 2% during the week, while the smallcap index surged 4%.
The overall market capitalisation of BSE-listed firms rose to ₹460 lakh crore on Friday from ₹448.7 lakh crore on June 23, making investors richer by ₹11.3 lakh crore.
“Key catalysts like the ceasefire in the Middle East and optimism on easing trade tensions ahead of the deadline have cleared the clouds in the minds of investors. After consecutive days of selling, FIIs have turned net buyers in the domestic market, contributing to improved market stability in the near term,” said Vinod Nair, Head of Research, Geojit Investments. Foreign institutional investors (FIIs) poured in more than Rs 1,500 crore (net purchase) on Friday.
Nair added that benign oil prices and a strengthening INR influenced investors to focus on domestic growth themes. Expectations of accelerating earnings, driven by resilient consumption and a relatively stable macroeconomic backdrop, are further reinforcing optimism, he stated.
The Bank Nifty hit a fresh high, ending above 57,400 for the first time, led by gains in ICICI Bank and SBI. Except for Nifty Consumer Durables, Realty, IT, and FMCG indices, all other sectoral indices on the NSE ended higher. Among the Sensex stocks, Asian Paints, Ultratech, Power Grid, Bharat Electronics, and Sun Pharma were the top gainers.
Nandish Shah, Senior Derivative & Technical Research Analyst, HDFC Securities said that the short-term trend of the Nifty remains positive as it is placed above important short-term moving averages “The Nifty has now entered the downward gap area of 25,640-25,740, created back on October 3rd, 2024. Any decisive close above 25,740 could provide the impetus to push the index towards the next psychological and technical resistance of 26,000. On the downside, 25,317 now stands as a crucial immediate support level,” added Shah.