Stock Market Weekly Wrap: Sensex and Nifty 50 Extend Gains for Third Consecutive Week

Indian equity markets continued their upward trajectory, with both Sensex and Nifty 50 closing higher for the third straight week. The rally was fueled by strong investor sentiment, favorable macroeconomic indicators, and optimism surrounding the Reserve Bank of India’s policy stance.  

Key Highlights of the Week  
- Sensex surged to 82,118.99, while Nifty 50 closed at 25,003, marking a strong finish to the week.  
- The rally was led by realty, automobile, and banking stocks, driven by expectations of credit growth and improved consumer confidence.  
- Financials and NBFCs saw gains, supported by the anticipation that lower interest rates will enhance borrowing conditions.  
- IT stocks lagged behind due to ongoing global uncertainties, particularly in the US and European markets.  

Market Drivers and Sectoral Performance  
- The Reserve Bank of India’s policy announcement provided a boost to investor sentiment, leading to a sharp surge in benchmark indices on Friday.  
- Rate-sensitive sectors, including real estate and banking, experienced robust buying activity.  
- The broader market saw mixed performance, with midcap and small-cap stocks showing resilience despite global volatility.  

Technical Outlook for the Coming Week  
- Nifty has approached the upper band of its consolidation range between 24,500 and 25,100.  
- A decisive breakout above 25,200 could signal the start of a fresh uptrend, potentially pushing the index toward 25,600–25,800.  
- On the downside, 24,400–24,600 is expected to act as a strong support zone during any corrective phase.  
- Bank Nifty has broken above the 56,000 mark, indicating potential movement toward 58,000, making this segment crucial for broader market direction.  

Key Market Events to Watch Next Week  
- Investors will focus on CPI inflation data, which will provide insights into demand patterns and the central bank’s future policy stance.  
- The progress of the monsoon and sowing activities will be closely monitored due to their impact on rural consumption.  
- Global trade developments and fluctuations in US bond yields will remain significant factors shaping investor sentiment.  

The Indian stock market remains poised for further gains, with technical indicators suggesting potential upward movement. Investors will closely track macroeconomic trends and global cues to gauge market direction in the coming weeks.  

Sources: MSN, Livemint, NDTV Profit, Upstox, Economic Times