Mumbai, July 4 (IANS). Indian stock market rose for the fourth consecutive week due to continuous fall in crude oil prices and expectations of relief in interest rates globally.
Nifty gained 0.89 percent during the week, while on the last trading day of the week it closed at 24,270 with a rise of 0.39 percent. At the same time, Sensex reached 77,763 on Friday with a gain of 262 points or 0.34 percent. During the entire week, the Sensex registered a rise of 0.86 percent.
Talking about sectoral performance, real estate, pharma and healthcare sector stocks performed best, while PSU bank and energy sector stocks remained relatively weak. At the same time, good recovery was also seen in the IT sector. Analysts say investor confidence has increased due to short covering and the growing role of Indian IT companies in enterprise AI adoption.
The broader market picture was also positive. The Nifty Midcap 100 index gained 0.64 per cent during the week, while the Nifty Smallcap 100 index rose 2.05 per cent, indicating that investor interest was not limited to large companies only.
According to analysts, the domestic stock market started this week in an environment of caution, but by the end of the week investors’ sentiment turned positive. In the initial days of the week, there was pressure in the market due to doubts over the stability of the peace arrangement made between America and Iran, profit-booking ahead of the upcoming quarterly results and slow start of monsoon.
However, international conditions remained in favor of the market by the end of the week. Crude oil prices fell as tensions eased around the Strait of Hormuz. Along with this, the soft remarks of the Chairman of the US Federal Reserve and the weak labor market data of America strengthened the hope that there may be a softening of interest rates globally in the coming time.
At the domestic level, there was enthusiasm among investors regarding the India-Japan summit. The market is hopeful that there will be progress between the two countries in areas such as trade, defence, semiconductor, Artificial Intelligence (AI) cooperation and the proposed Rupee-Yen payment arrangement, which will further strengthen economic ties.
According to analysts, 24,400 will be the nearest resistance for Nifty in the coming week, while 24,200 is considered the first important support. Below this there will be a 24,000 strong support level. At the same time, for Bank Nifty, the main support can be seen in the range of 57,600 to 57,500 and resistance between 58,200 to 58,300.
The further direction of the market will now depend on several important events. Investors will keep an eye on the minutes of the US Federal Open Market Committee (FOMC) meeting, first quarter results of Indian companies, progress of monsoon, credit growth in the banking sector and India’s ongoing trade talks with Japan, Britain and the US.
Analysts believe that although challenges like cuts in corporate earnings estimates, monsoon-related inflation concerns and caution by foreign institutional investors (FIIs) still remain, a major part of these risks have already been factored into the market. In such a situation, if there are further positive economic signals then the bullish trend in the Indian stock market may continue.
–IANS
DBP
