Global Equities Rally as Inflation Moderation Hints at Central Bank Pivot”
Indian Developments
NIFTY 50 and NIFTY MIDCAP 150: Advanced 1.65% and 3.21% respectively over the course of the week driven primarily by a collapse in crude oil prices following a landmark US-Iran interim peace deal. The broader indices showed highly resilient action throughout the week, driven by strong domestic liquidity and retail SIP inflows. However, the severe divergence between a booming banking sector and a bleeding IT sector dominated the final headlines. NIFTY 100 & NIFTY 500 settled at 25,086.65 and 23,144.20 respectively. INDIA VIX: Contracted significantly by 11.89% to settle at 12.97. The Nifty 10 Yr Benchmark G-Sec yield marginally tilted to end the weekly trade at 2,644.77.
Brent crude crashed more than 9% for the week, diving toward $79 a barrel. Foreign Institutional Investors (FIIs) remained net sellers towards the end of the week, but the downside was completely absorbed by Domestic Institutional Investors (DIIs), who pumped in ₹3,516 crore to protect market floors.
Sectoral Developments
The Winners (Consumption & Realty): Lower fuel prices fuelled a major rally in retail and housing plays. Nifty Consumption jumped a staggering 6.44%, while Nifty Realty surged 5.50%. Capital Goods (+4.02%) and Infrastructure (+2.98%) also saw heavy accumulation.
The Losers (IT): Information Technology was the sole heavy detractor of the week, ending down 1.33%. On Friday alone, sector leaders like Infosys plunged 7.87% and TCS fell 5.90%, completely stripping away the index's weekly highs.
Global Developments
Wall Street: Tech exchanges encountered severe pressure after global IT bellwether Accenture trimmed its full-year guidance on Wall Street, forcing its stock to crash 18% and introducing immediate risk-off setups across domestic markets. Asian Markets: Broad trading showed fragmented consolidation. While energy-beneficiary exchanges capitalized on lower inputs, chip manufacturing hubs traded under localized supply volatility.
Other Markets: • Brent Crude: $79,84 per barrel • Rupee ended the week at ₹94.37 against the US dollar • 10-Year Benchmark Yield: 6.85%.
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