Indian Stock Market Ends Week Strong as Nifty Breaks 25,000; Sensex Hits Record High

Mumbai: The Indian equity markets ended the week on a strong and optimistic note, shaking off midweek volatility caused by geopolitical uncertainties and rising crude oil prices. The Sensex soared 1,046.30 points (1.29%) to hit a record closing high of 82,408.17, while the Nifty 50 surged 319.15 points (1.29%) to close above the key 25,000 level at 25,112.40.

Nifty Breaks Key Psychological Level of 25,000

The Nifty 50’s decisive breakout above 25,000 marked a bullish turning point for the market. Analysts highlighted that the index formed a large bullish candle with a higher high and higher low, signaling a continuation of the upward trend following recent consolidation.

“This close signals renewed strength in the market. We now anticipate the Nifty to retest the upper boundary of its five-week consolidation zone near 25,200. A breakout from there could extend the rally toward 25,500,” Bajaj Broking Research said in a note.

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Institutional Buying Drives Momentum

Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) contributed to the market’s resilience, providing strong tailwinds against external headwinds such as geopolitical tension.

“Relentless inflows from institutional investors helped sustain bullish sentiment despite ongoing global uncertainties,” the Bajaj Broking note added.

RBI’s Policy Stance Boosts Financial Stocks

The Reserve Bank of India’s easing of project financing norms gave a significant boost to banking and financial stocks. Furthermore, the RBI’s dovish tone—signaling possible rate cuts in light of controlled inflation—was seen as a stabilizing force.

“Monetary policy remains supportive, which is crucial amid global uncertainty,” noted Vinod Nair, Head of Research at Geojit Financial Services.

Oil Price Spike Sparks Volatility, But Impact Eases

Earlier in the week, oil prices surged due to escalating tensions in the Middle East, sparking inflation concerns. However, the spike was short-lived, and prices stabilized, helping calm the markets.

Pharma Sector Under Pressure Amid Tariff Concerns

Investor sentiment toward the pharmaceutical sector turned cautious following the proposal of new tariffs. With the 90-day pause on reciprocal tariffs nearing its end, markets are closely watching upcoming trade negotiations and policy decisions.

Eyes on Global Data: U.S. GDP, PCE & India’s PMI

Looking ahead, investors will be monitoring crucial economic indicators such as the U.S. GDP, PCE inflation data, and India’s upcoming PMI numbers. These reports will offer insights into the strength of the global and domestic economic recovery.

Outlook: Bulls in Control, Resistance at 25,200

The short-term outlook remains positive, with analysts eyeing 25,200 as the next resistance level for the Nifty. A breakout could potentially pave the way toward 25,500 in the coming sessions.