Indian equity benchmarks ended marginally higher on Friday, extending their recovery for a second session, but posted weekly losses amid elevated crude prices and rising global bond yields.
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Equity benchmarks closed marginally higher on Friday, extending their recovery for a second consecutive session, even as elevated crude oil prices and rising global bond yields capped gains. The Sensex added just 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, its second consecutive weekly decline, with the Sensex shedding 460 points over the same period.
The session’s tone was set early, with the Nifty opening 53 points higher but spending most of the day locked in a narrow 60-point band, reflecting a lack of directional conviction. Brent crude climbed above $93 a barrel, on pace for a weekly gain of over 5 per cent, as the US-Iran standoff intensified. The UAE raised the stakes further by suspending all financial and economic transactions with Tehran after accusing Iran of launching ballistic missiles at its territory. WTI crude traded around $85 per barrel, while domestic crude futures remained above ₹8,200.
Among Nifty 50 constituents, Power Grid and HDFC Life were the top gainers, while Trent, Maruti Suzuki and IndiGo were the major laggards. On the sectoral front, Nifty Metal gained 1 per cent, supported by a rise in LME zinc and broader metal prices. Nifty CPSE also ended in the green. On the downside, 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 was the top sectoral gainer, rallying 2.55 per cent.
The broader market fared better. The Nifty Midcap 100 rose 0.10 per cent, while the Nifty Smallcap 100 gained 0.69 per cent. The Smallcap index broke out of a consolidation range it had held since August 6, closing above the 19,937 upper boundary. Market breadth, however, remained weak, with 272 of the Nifty 500 stocks ending in the red and the advance-decline ratio at 1.08.
The Indian rupee held largely steady at 95.71 against the US dollar. A softer dollar and easing US Treasury yields offered some support, but elevated crude prices and sustained importer demand for dollars limited any appreciation.
Gold was a standout performer. Domestic gold climbed around 4 per cent this week to ₹1,61,600, while COMEX Gold approached $4,585. Jateen Trivedi of LKP Securities noted…”The rally was supported by weakness in bond yields after the US Treasury announced plans to buy back around $4 billion of bonds quarterly.” He pegged support at ₹1,57,000 and resistance at ₹1,64,500, with Core PCE inflation and US GDP data as key near-term triggers.
On the corporate front, Welspun Corp secured a record $1.8 billion US pipe order, the largest in the company’s history, bringing its global order book to $4.4 billion. Sarvam Goel of Pocketful noted the paradox: …”the same Iran conflict that is squeezing India’s crude import bill is driving US energy infrastructure investment.”
Vinod Nair of Geojit Investments flagged that the RBI’s hawkish meeting minutes have pushed India’s 10-year yield to a two-month high. …”Strong value buying in financial heavyweights fuelled by robust credit growth and attractive valuations after the recent correction is helping the market trade flat.”
Looking ahead, Nifty technically holds above its 50-day and 100-day EMAs near 24,200, but remains below the 20-day EMA at 24,300 and the 200-day EMA at 24,376. Amol Athawale of Kotak Securities sees 24,150 as the crucial support; a hold above this could push the index toward 24,400–24,700. For Bank Nifty, the 200-day SMA at 57,500 is the key level to watch, with a breach potentially dragging it toward 57,000–56,700. Monsoon progression, FII flows, crude prices and global bond market developments will remain the key monitorables next week.
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