Sensex, Nifty extend winning streak for third week as crude oil prices ease

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The Indian equity benchmarks posted a third consecutive week of gains on a sharp correction in crude oil prices to pre‑Iran war levels and improved traffic at the Strait of Hormuz.

According to IANS, Nifty added 0.18 per cent during the week and edged up 0.14 per cent on the last trading day to reach 24,056. At close, the Sensex was up 109 points, or 0.14 per cent, at 77,100. It added 0.39 per cent during the week.

Weekly sectoral indices

On the sectoral front, pharma and healthcare stocks outperformed, while private banks advanced following the RBI's clarity on the FCNR(B) deposit swap scheme.

Metals were major losers due to falling commodity prices, while consumer durables lagged amid demand concerns.

Broad market indices showed divergence with benchmark indices, as Nifty Midcap100 lost 1.15 per cent, while Nifty Smallcap100 edged up just 0.03 per cent during the week. Immediate resistance levels for Nifty are placed at 24,400 and 24,500, and support is seen at 23,900 and 23,800.

Easing geopolitical tensions and declining crude oil prices

The domestic markets navigated a week of mixed signals with notable resilience, even as broader indices, especially mid-caps, faced modest selling pressure.

Easing geopolitical risks amid progressing US-Iran talks and optimism around an India-US trade deal helped fuel domestic investor sentiment.

However, expectations of rising inflationary pressure and a potential dampening in rural demand began to surface, driven by concerns over uneven monsoon distribution, an analyst said.

Expert opinion

Sustained softness in crude prices remains a clear macro positive in the near term, along with improving inflation, fiscal, and current account dynamics, collectively providing the RBI with greater policy flexibility.

As corporate earnings reports are expected in the coming weeks, management commentary on demand visibility, margins, and order flows will serve as key indicators for market direction.

A market expert said, "A prudent yet optimistic stance is warranted, with a focus on selectively building positions in fundamentally strong companies that have seen recent corrections without any meaningful deterioration in their underlying outlook," as per IANS.

Investors remain keen on US PCE data that will shape the globe, along with non-farm payrolls and unemployment figures, which will influence Fed rate expectations and overall risk appetite.

Domestically, industrial production data and June PMI readings will provide early signals ahead of Q1 earnings season, according to analysts.

(With inputs from IANS)