Mumbai, May 9: The Indian stock market experienced notable gains this week, driven by a decline in crude oil prices, a strengthening rupee, and a drop in 10-year bond yields. However, geopolitical tensions continue to pose concerns for investors.
During the week, the Nifty index recorded a rise of 0.76 percent. On the last trading day, it fell by 0.60 percent, closing at 24,180. Meanwhile, the Sensex dropped 516 points, or 0.66 percent, to end at 77,328, although it still marked a 0.54 percent increase over the week.
A market analyst noted, “The improvement in economic conditions has shifted the market sentiment from initial caution to a more positive outlook. This resilience was evident despite profit-taking at the week’s end.”
Election results from various states and better-than-expected fourth-quarter results have bolstered investor confidence. The midcap and smallcap indices outperformed the major indices, with significant buying observed in the auto, defense, real estate, and pharmaceutical sectors.
The Nifty Midcap 100 index rose by 3.49 percent, while the Nifty Smallcap 100 index saw a gain of 4.05 percent during the week.
Market experts suggest that stable crude oil prices and a strong rupee are currently supporting the market. However, any escalation of tensions in West Asia could exert pressure on commodity-related sectors.
The last trading day of the week saw a decline in domestic markets due to rising tensions between the U.S. and Iran. Investors began reassessing hopes for a peace agreement, leading to increased concerns over energy supply.
Iran claimed that the U.S. violated a ceasefire agreement, while U.S. President Donald Trump stated that the ceasefire remains in effect, with Iran also suggesting a return to normalcy.
In international markets, Brent crude prices fell by over 3 percent, dropping below $95 per barrel. In the domestic market, crude oil futures also slipped below the 9,000 rupee mark.
According to market analysts, the Nifty is currently facing a strong resistance zone between 24,250 and 24,300, while the support level remains between 24,100 and 24,000.
In the banking sector, if the Bank Nifty maintains strength above 55,500, it could reach levels between 55,800 and 56,000, indicating a potential bullish trend in the near term.
Investors are now focused on inflation data from India and the U.S., along with domestic credit growth figures, as these will influence the RBI’s interest rates and corporate profitability moving forward.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 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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