India’s equity markets roared higher this week, driven by a confluence of positive global and domestic cues. The NIFTY50 index closed the week with a powerful gain of 4.21%, finishing at 25,019, while the Bank Nifty climbed 3.28%, ending the week at 55,354.90. This bullish momentum was not limited to large-cap indices alone, with broader markets also participating actively in the rally.
Let’s explore the week’s key highlights, sectoral movers, market drivers, and stocks to watch.
NIFTY50: Strong Gains with Bullish Sentiment
The NIFTY50 opened the week with a significant gap-up on Monday, following geopolitical relief from the India-Pakistan ceasefire and favorable news from US-China trade talks. These developments injected optimism into global risk markets and provided a springboard for Indian equities.
While the early part of the week saw consolidation amid cautious optimism, the mood shifted on Thursday. A short-covering rally in the second half of the session saw the index surge higher, cementing weekly gains.
Key Technical Levels:
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Resistance: 25,700
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Support: 24,900
Traders and investors now eye the 25,700 level as a near-term ceiling, with a break above potentially opening the gates to new all-time highs.
Bank Nifty: Banks Stay Buoyant
The banking index, Bank Nifty, also witnessed a robust move, ending higher by 3.28%. The bullish undertone was driven by global tailwinds and renewed confidence in India’s economic resilience.
Post Monday’s surge, the index entered a consolidation phase, typical of profit-taking after sharp moves. However, Thursday’s short-covering wave reignited momentum, suggesting strong undercurrents.
Key Technical Levels:
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Resistance: 56,100
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Support: 54,500
If Bank Nifty breaks above 56,100, it may signal renewed institutional interest in heavyweight banking counters.
Realty Sector: Star of the Week
The Nifty Realty Index emerged as the best performing sector this week, with multiple real estate stocks clocking double-digit gains.
Major Gainers:
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Anant Raj: +19.91%
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DLF: +13.33%
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Sobha: +12.10%
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Prestige Estates: +11.83%
This surge can be attributed to improving urban housing demand, favorable interest rate outlook, and sustained investor interest in real assets amid volatility in other asset classes.
Why Realty is Rising:
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Revival in residential demand
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New project launches and strong bookings
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Supportive regulatory environment
Realty stocks now seem to be on the radar of institutional investors, reflecting confidence in India’s urban infrastructure growth.
Defence Stocks Fly High
Another standout theme this week was the defence sector. A mix of government policy support and robust order flows led to massive investor interest.
Big Gainers:
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Paras Defence & Space Technologies: +25%+
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Mishra Dhatu Nigam: +25%+
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Astra Microwave Products
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Data Patterns (India)
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Bharat Dynamics
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HAL (Hindustan Aeronautics)
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BEL (Bharat Electronics)
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Droneacharya Aerial Innovations
BEL in Focus:
The spotlight remains on BEL, which received a ₹572 crore order, including for Integrated Drone Detection and Interdiction Systems. This has elevated BEL as a major beneficiary of the government’s “Aatmanirbhar Bharat” and “Make in India” campaigns in defence manufacturing.
Metal Stocks Rebound on Trade Optimism
Metal stocks, which had seen selling pressure in recent weeks, rebounded strongly:
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Vedanta: +13%
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Hindalco: +8%
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NALCO: +4%
This move was in reaction to progress in US-China tariff negotiations, sparking hopes of improvement in base metal prices, a critical factor for metal producers globally.
Global Factors at Play:
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Revival in Chinese demand
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Possibility of easing US tariffs
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Higher commodity price expectations
Foreign Institutional Investors Turn Net Buyers
A crucial shift in market dynamics this week was the return of Foreign Institutional Investors (FIIs) as net buyers. This reversal from weeks of selling comes on the back of:
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Reduced geopolitical tension
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Global monetary policy stability
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Attractive valuations in Indian equities
FIIs buying often acts as a confidence booster and can sustain rallies, especially in large-cap indices like NIFTY50 and Bank Nifty.
Global News: Moody’s Downgrade of US Credit Rating
A notable global development this week was Moody’s downgrade of the US’ triple-A credit rating, lowering it by one notch due to rising debt levels. While the outlook was changed to ‘stable’, the move raises concerns about long-term US fiscal health.
Though this didn’t trigger immediate panic in equity markets, it could:
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Affect global bond yields
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Increase risk-aversion in global capital flows
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Prompt investors to reallocate towards emerging markets
India, with its growing macroeconomic stability and growth trajectory, stands to gain from such reallocations.
Market Outlook: What to Expect Next Week
As markets digest this week’s gains, a few key themes will determine the near-term direction:
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Follow-through buying at higher levels
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Reaction to BEL’s ₹572 crore order
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Continued FII activity
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Any fresh developments in global trade or geopolitical tensions
Sectors to Watch:
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Defence: Continued government support and order flow news
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Realty: Earnings updates and project launches
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Metals: Any policy announcements from China or the US
Key NIFTY Levels to Track:
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Upside Target: 25,700
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Downside Support: 24,900
A breach above 25,700 could spark a fresh round of buying, while holding 24,900 will be key to maintaining the bullish tone.
Conclusion: Bulls in Command, but Stay Selective
This week marks a turning point in sentiment, with a broad-based rally lifting investor spirits. Positive cues from geopolitical developments and trade negotiations, coupled with strong sectoral performance, have laid the foundation for further gains.
However, traders should exercise caution near resistance levels, watch out for global cues, and remain focused on high-conviction sectors like realty, defence, and select metal counters.
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https://www.nseindia.com
