Daijiworld Media Network - Mumbai
Mumbai, May 23: Indian equity markets ended the week on a positive note, supported by easing crude oil prices and reports of indirect diplomatic engagement between the US and Iran, which helped improve global risk sentiment.
The Nifty index rose 0.32 percent over the week and closed 0.27 percent higher on the final trading day at 23,719. The Sensex gained 231 points, or 0.31 percent, ending at 75,415, with a weekly advance of 0.24 percent.
Market analysts noted that despite the recovery, investor sentiment remained cautious, with limited conviction at higher levels continuing to restrict strong upward momentum.
Sector-wise, information technology stocks led the gains, supported by attractive valuations after recent corrections. Realty, cement, and private banking stocks also performed steadily, while FMCG and consumer durables lagged due to concerns over margin pressure from potential cost pass-through.
Midcap and smallcap segments outperformed large-cap indices during the week. The Nifty Midcap 100 rose 1.36 percent, while the Nifty Smallcap 100 gained 0.41 percent, reflecting broader market participation beyond benchmark stocks.
The Indian rupee found some support as crude oil prices eased amid efforts to reduce tensions in West Asia. However, concerns over inflation and potential monetary tightening continued to weigh on domestic bond yields.
Globally, US bond markets also reflected heightened uncertainty, with the 30-year Treasury yield climbing to its highest level since 2007. The rise was attributed to persistent inflation concerns, elevated energy prices, and broader macroeconomic risks.
Analysts warned that the expectation of prolonged high interest rates could continue to restrict global liquidity and put pressure on risk assets, including emerging markets like India.
Technically, market participants see strong resistance for the Nifty in the 23,800–24,000 range, while immediate support lies between 23,300 and 23,400. For Bank Nifty, resistance is placed around 54,200, with support in the 53,500–53,600 zone.
Foreign institutional investors (FIIs) remained net sellers during the week, with outflows estimated at around Rs 7,570 crore, according to market participants.
Investors are now closely watching key economic indicators, including India’s Index of Industrial Production (IIP) data for April, which will provide insights into manufacturing trends.
Attention is also focused on the Reserve Bank of India’s upcoming policy decision in June and the US core Personal Consumption Expenditures (PCE) inflation data, both of which could influence global interest rate expectations and future foreign fund flows into emerging markets.