Indian benchmark indices closed the week on a strong note, gaining 1% and ending a six-week losing streak despite continued geopolitical tensions.
Market mood was supported by expectations ahead of the meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska. Investors are optimistic that the negotiations could result in a Russia-Ukraine ceasefire and potentially eliminate the extra 25% tariff imposed on India.
On a sectoral level, the Nifty IT index performed better, with Nifty Metal and Nifty FMCG closing in the red. Broader markets disappointed, with both the Nifty Midcap and Nifty Smallcap indices closing lower.
With Q1 FY26 results now out, moderation in revenue kept Nifty 50 company (ex-financials and oil & gas) average year-on-year net profit growth in the mid-single digits. Overall, the results were line with market expectations, although urban demand recovery is still below expectations.
Vinod Nair, Geojit Financial Services' Head of Research, said, "The healthcare and PSU banks performed well due to robust earnings and consistent asset quality."
He further stated that "benign domestic inflation is at an eight-year low, exciting hopes for a rebound in discretionary spending. Also, S&P's upgrade of India's sovereign credit rating to BBB is likely to enhance investor sentiment and underpin long-term growth."
Global cues were also favorable, supported by weaker US inflation data and a fall in the US 10-year bond yield, supporting expectations of a September Federal Reserve rate cut.
Technically, the Nifty is expected to trade between 24,350 and 24,750, with a clear break above 24,750 likely to lead to a move towards the 25,000 level.
Institutional side, FIIs were net sellers on Thursday and sold equities to the tune of ₹1,926 crore. They bought shares worth ₹13,646 crore but sold shares worth ₹15,572 crore. Meanwhile, DIIs were net buyers and infused equities to the tune of ₹3,895 crore after buying ₹13,144 crore and selling ₹9,248 crore of shares.
