Positive vibes from a potential US-Iran ceasefire agreement sparked a powerful rally in Indian equities, delivering the benchmarks their best weekly show since February 2021. The Sensex and Nifty each posted around 6% gains, halting a six-week slide amid short covering frenzy.
Wrapping up the week, Nifty advanced 1.16% to 24,050, capping a 5.9% surge. Sensex gained 1.20% or 918 points to 77,550, up 5.8% overall. Bank Nifty outpaced all, soaring 8.47% to 55,912 with a 1.99% Friday close, its chart flashing bullish strength.
Realty sector surged 12.97%, capital markets 11.7%, and financial services 10.8%. Broader participation came from midcaps (7.76%) and smallcaps (7.60%), backed by banking heavyweights and favorable global sentiment.
The India VIX dropped sharply by 7.72% to 18.85, reflecting diminished volatility as geopolitical risks recede. However, the truce’s longevity remains a wildcard.
BSE’s total market cap jumped ₹6.5 lakh crore to ₹451.23 lakh crore, with investor portfolios enriched by ₹28.85 lakh crore. Technicals suggest Bank Nifty support at 53,000-53,700 and upside hurdles at 56,700-57,700. Nifty finds backing at 23,150-23,500, eyeing 24,500-25,000 resistance.
Analysts credit the bounce to global stability from truce talks, which curbed oil price spikes and encouraged risk-on trades. Looking ahead, focus shifts to ceasefire developments, oil trends, and FII positioning as markets navigate uncertainties.
