Markets Soar: Sensex & Nifty Jump Over 4.5% in Holiday-Shortened Week
The Indian stock market witnessed a significant rebound this week, with benchmark indices rising over 4.5%, driven by strong domestic cues, easing inflation, and positive global sentiment. The holiday-shortened trading week ended on a bullish note, lifting investor confidence across sectors.
Mumbai: The Indian stock market witnessed a significant rebound this week, with benchmark indices rising over 4.5%, driven by strong domestic cues, easing inflation, and positive global sentiment. The holiday-shortened trading week ended on a bullish note, lifting investor confidence across sectors.
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Nifty and Sensex Close Near Weekly Highs
The benchmark indices surged steadily throughout the week:
- Nifty 50 closed at 23,851.65
- Sensex settled at 78,553.20
This marked a strong recovery after weeks of consolidation, as both indices approached record highs. Experts say the indices have now reclaimed key moving averages, including the 100-day and 200-day Exponential Moving Averages (EMAs).
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Market Range Breakout Suggests Further Upside Potential
Ajit Mishra, SVP of Research at Religare Broking, commented,
“The Nifty index, which has been trading in the range of 21,700–23,800 for the past few months, has now broken toward the upper end. With strong momentum, it could soon test the 24,250–24,600 range.”
Banking Stocks Lead the Rally
Banking and financial stocks were standout performers this week, buoyed by:
- Easing retail inflation figures
- A positive monsoon forecast, which supports growth prospects
- Hopes of interest rate cuts by the Reserve Bank of India (RBI)
These factors triggered a sectoral surge, especially in large-cap banks.
Global Cues and Trade Optimism Support Market Sentiment
The rally was also supported by:
- No major negative surprises from global markets
- Optimism over tariff deferrals and exemptions for key products
- Reduced geopolitical and trade tensions
These developments helped sustain the bullish sentiment across sectors.
India VIX Falls, Indicating Reduced Market Volatility
According to market experts, the decline in the volatility index (India VIX) reflects a drop in investor anxiety and suggests more stable trading sessions ahead.
Ajit Mishra added,
“As long as Nifty remains above the 23,000 level, a buy-on-dips strategy should be maintained.”
Outlook for the Coming Week: Volatility Likely to Stay Elevated
A Bajaj Broking Research report notes that while the trend remains positive, volatility may stay elevated due to:
- Ongoing Q4 earnings season
- Tariff-related developments in global trade
“Dips in the coming week should be seen as buying opportunities, with strong support at 23,200 levels,” the report suggested.
