Equity benchmarks ended a four-session losing streak on Friday, staging a modest recovery on the back of easing concerns over an imminent US Federal Reserve rate hike, even as the week itself closed in the red for the fourth consecutive time.
The settled at 23,897.70, up 0.10 per cent, while the closed at 76,515.43, gaining 0.48 per cent. Despite Friday’s recovery, the Nifty posted a weekly loss of 1.15 per cent, with the Sensex down around 750 points over the week. The session saw the Nifty touch an intraday high near the 24,000 mark before profit booking pulled it lower.
“Indian equities witnessed a relief rally as concerns over an imminent US Fed rate hike eased,” said Vinod Nair, Head of Research, Geojit Investments Limited, adding that gains remained capped due to profit booking and persistent geopolitical tensions in the West Asia.
The day’s sentiment was lifted largely by dovish signals from US Fed Governor Christopher Waller, who indicated support for keeping interest rates unchanged at the next policy meeting. Softer-than-expected US Non-Farm Employment Change data also bolstered risk appetite globally.
Sectoral performance was mixed. Metals, Financial Services and Cement emerged as the top gainers, while Realty, Healthcare, Pharma and IT faced selling pressure. Among Nifty 50 stocks, SBI Life, Tata Steel and HDFC Life led gains, while HCL Technologies, Bharti Airtel and Maruti were the top laggards.
Broader markets delivered a split verdict, the Nifty Smallcap 100 gained 0.22 per cent, while the Nifty Midcap 100 declined 0.25 per cent. Market breadth was nearly even, with 245 stocks advancing against 249 declining within the Nifty 500 universe.
On the macro front, India’s Q1FY27 real GDP growth came in at 7.8 per cent, beating market expectations, driven by strong exports and investment growth. The Indian rupee strengthened, closing near 94.50 against the dollar, a nearly 1 per cent appreciation during the week, supported by FCNR deposit inflows that have crossed $127 billion under the RBI’s special concessional window. Brent crude rose 0.3 per cent to around $95.4 per barrel, remaining an overhang on sentiment given India’s import dependence. Gold saw volatile moves during the week, recovering from around ₹1,50,000 to ₹1,55,000 on softer employment data, with analysts pegging its near-term range at ₹1,52,500–₹1,57,500.
Looking ahead, markets will watch the US unemployment data closely, while next week’s US CPI print will be critical in shaping Fed rate expectations. On the domestic front, 11 mainboard IPOs are scheduled to open next week, targeting over ₹7,000 crore. “Crude prices and developments in the West Asian conflict remain key risks, while investors will track global rate expectations and domestic liquidity,” said Siddhartha Khemka of Motilal Oswal Financial Services.