The benchmark equity indices extended their winning streak for the third consecutive week, buoyed by optimism over a potential early bilateral trade deal between India and the US. The Sensex climbed 1,289.46 points, or 1.63%, during the week to close at 80,501.99, marking its first weekly close above the 80,000-level since December 13. The Nifty advanced 307.35 points, or 1.28%, to end at 24,346.70.
In the holiday-shortened week, most of the gains came on Monday, when the Sensex surged 1,005.84 points (1.27%) and the Nifty gained 289.15 points (1.20%). On Tuesday and Wednesday, the indices traded flat, while Thursday was a holiday. On Friday, after a volatile session, the Sensex rose 259.75 points (0.32%) and the Nifty added 12.50 points (0.05%).
“Optimism around a potential trade agreement with the US and expectations of a corporate earnings recovery heading into FY26 underpinned a positive sentiment in the domestic market. Additionally, a weakening US dollar and persistent inflationary concerns prompted FIIs to maintain their buying stance in Indian equities,” said Vinod Nair, head of research at Geojit Financial Services.
He added that gains were capped by geopolitical concerns, particularly escalating tensions between India and Pakistan, and mixed Q4 corporate earnings that weighed on the investor sentiment.
Broader markets saw mild profit booking after a strong rally from April lows. The BSE Midcap index recorded a modest gain of 0.42%, while the BSE Smallcap index declined 1.33% during the week.
“After the recent upsurge, investors resorted to profit taking, resulting in weakness in the broader markets. With the fragile global environment amid geopolitical tensions and the ongoing tariff war, investors are not betting big on equities,” said Prashanth Tapse, senior VP (research) at Mehta Equities.
Foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) were net buyers, purchasing shares worth Rs 7,804 crore and Rs 3,290.49 crore, respectively, during the week.
Investor wealth increased by Rs 1.22 lakh crore, pushing the total BSE market capitalisation to Rs 422.81 lakh crore.
On the sectoral front, energy, oil & gas, realty, capital goods and auto were the top gainers, rising up to 3.79%. In contrast, utilities, power, telecom, commodities, and consumer durables were the top laggards, falling up to 1.85%.
Among the Sensex pack, Reliance Industries was the top performer, with a 9.38% gain. Other notable gainers included Adani Ports, Maruti Suzuki, IndusInd Bank, and Eternal.
On the downside, UltraTech Cement, Bajaj Finserv, Nestle India, Bajaj Finance, and NTPC were the top losers, declining up to 4.85% over the week.