Markets End Second Week Higher; Sensex Adds 1,275 Points, Midcaps Outperform

Indian benchmark indices ended higher for the second consecutive week, supported by easing crude oil prices, a stronger rupee and the return of foreign institutional buying following positive developments in West Asia. Strong domestic institutional inflows and broad-based participation across sectors helped offset Friday's sharp selloff in information technology stocks.

For the week, the BSE Sensex gained 1,274.95 points, or 1.68%, to close at 76,802.90, while the NSE Nifty 50 advanced 390.20 points, or 1.65%, to settle at 24,013.10.

The rally also led to a sharp increase in investor wealth, with the total market capitalisation of BSE-listed companies rising by ₹15.53 lakh crore during the week.

Midcaps And Smallcaps Outperform

The broader market continued to outperform the benchmark indices. The Nifty Midcap 100 index surged nearly 3%, led by gains in Bharat Dynamics, GE Vernova T&D India, Kalyan Jewellers India, FSN E-Commerce Ventures, Yes Bank and ICICI Lombard General Insurance. Among the laggards were Colgate-Palmolive India, Exide Industries, Fortis Healthcare, NMDC, Indus Towers and Steel Authority of India.

The Nifty Smallcap 100 index climbed 3.2%, with Redington, Five-Star Business Finance, PG Electroplast, PhysicsWallah, Star Health & Allied Insurance, Central Depository Services, KFin Technologies, Netweb Technologies India and IDBI Bank rising between 10% and 19%. Ola Electric Mobility, Ather Energy, Cohance Lifesciences and Mangalore Refinery & Petrochemicals were among the notable losers.

FIIs Return, Rupee Strengthens

Foreign institutional investors turned net buyers during the week, purchasing equities worth ₹3,386.33 crore after several weeks of sustained selling. Domestic institutional investors remained supportive, buying shares worth ₹7,107.89 crore.

The Indian rupee also staged a strong recovery, appreciating 78 paise during the week to close at 94.33 against the US dollar, compared with 95.11 in the previous week.

Investor sentiment improved after easing geopolitical tensions in West Asia helped crude oil prices retreat sharply, reducing concerns around inflation, India's import bill and the current account deficit.

Defence, Realty Lead Sectoral Gains

Sectorally, the rally was broad-based, with all major indices ending higher except information technology.

The Nifty IT index declined 1.3%, weighed down by Friday's sharp selloff following Accenture's weaker-than-expected revenue outlook and concerns over global technology spending.

Among gainers, the Nifty India Defence index jumped 6.5%, emerging as the top-performing sector. The Nifty Consumer Durables index advanced 6.4%, while Realty gained 5.5% and Capital Markets rose 4.2%.

In terms of market capitalisation, Bharti Airtel, Bajaj Finance, Trent and Reliance Industries emerged as the biggest wealth creators during the week. On the other hand, Infosys, Tata Consultancy Services and Kotak Mahindra Bank witnessed the sharpest erosion in market value amid weakness in technology and financial stocks.