Mumbai, April 18: The ongoing peace talks between the United States and Iran have provided strong support to the Indian stock market this week. Positive global signals, a strengthening rupee, and a decline in crude oil prices have boosted investor confidence, leading to widespread buying in the market.
On the last trading day of the week, Friday, the Sensex closed up by 504.86 points, or 0.65%, at 78,493.54. Meanwhile, the Nifty rose by 156.80 points, also 0.65%, closing at 24,353.55.
Buying activity was observed across nearly all sectors. According to a report from Bajaj Broking Research, the market maintained a positive trend throughout the week. Notably, the Nifty FMCG, Metal, and Oil & Gas sectors recorded gains of 1% to 3%, while the IT sector remained relatively weak.
Midcap and small-cap stocks outperformed the larger indices. The Nifty Midcap Index saw an increase of about 1.27%, while the Smallcap Index climbed approximately 1.48%.
Analysts noted a gradual but steady recovery in the Indian markets this week. Improvements in the global environment and falling crude oil prices have bolstered investor confidence. However, a cautious atmosphere persisted in the market. Continuous buying and an increasing risk appetite have strengthened the indices.
Ponmudi R mentioned that market fluctuations have been more controlled compared to recent weeks. Investors showed buying interest during dips, indicating a gradual strengthening of market sentiment. Nonetheless, the market has not yet achieved a decisive breakout at higher levels, suggesting that the trend is still in a transitional phase.
The market appears to be shifting towards cautious optimism. Soft crude oil prices, improved global signals, and steady investment flows are supporting this recovery. The risk of a downturn in the near future seems limited, while the potential for an upswing is gradually increasing.
Meanwhile, foreign institutional investors (FIIs) have shown signs of improvement in their stance. After a prolonged period of selling, FIIs made purchases in the last three sessions of the week, providing support to the market. However, their overall investment for the week reflected a slight outflow of around ₹250 crore.
On the other hand, domestic institutional investors (DIIs), who had been consistently supporting the market, appeared to engage in profit-taking during the last sessions of the week. DIIs recorded a withdrawal of approximately ₹6,300 crore throughout the week.
Despite this, the role of domestic investors in maintaining market stability remains strong, and they are expected to continue providing structural support to the market.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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