Indian shares extended their winning streak into a second week, propelled by lower crude oil costs and robust Q1 FY27 earnings, with market sentiment bolstered by positive macroeconomic indicators and easing global concerns.
Indian shares extended their winning run for a second straight week, helped by a sharp drop in crude oil prices and a better-than-expected start to the Q1 FY27 earnings season. The Nifty rose 0.77 per cent over the week and finished Friday 0.27 per cent lower at 24,570, while the Sensex slipped 455 points, or 0.58 per cent, to 78,499 but still gained 0.52 per cent across the week.
Broader market strength remained a key feature of the rally. The Nifty Midcap 100 advanced 0.87 per cent and the Nifty Smallcap 100 climbed 2.73 per cent, with small-cap names continuing to outperform on earnings momentum and stock-specific triggers. PSU banks led sector gains, while metals benefited from a firmer growth outlook and resilient domestic demand. Automobiles also drew buying interest on hopes of healthy festive-season sales.
Market participants said the week began with volatility after the launch of the new futures and options Closing Auction Session, but trading steadied as investors adjusted to the revised framework. Sentiment also improved as crude prices eased, strengthening expectations that inflation pressures could soften and offering some relief to India’s macroeconomic outlook. Globally, softer labour market readings in the United States reduced expectations of an imminent Federal Reserve rate rise, while lower bond yields and a weaker dollar added support to gold.
The domestic backdrop was also supportive. The Reserve Bank of India held its policy stance steady while nudging up its growth forecast and trimming its inflation projection, reinforcing confidence in the economy’s near-term path. Stronger-than-expected earnings have added to that optimism, with investors now watching US labour and inflation data for clues on the Fed’s next move, alongside Indian CPI and WPI inflation readings and credit growth figures for signs of how growth and price pressures are evolving.
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