Nifty gains 0.46%, Sensex rises 0.36%, extend gains for third consecutive week

New Delhi: Indian equity benchmarks extended gains for a third consecutive week amid sustained foreign inflows and strong domestic fundamentals, setting off emerging inflation concerns.

Nifty added 0.46 per cent during the week and shed 0.61 per cent on Friday, settling at 25,144.

Similarly, Sensex closed 286 points or 0.35 per cent lower at 81,592 in the previous trading session. However, it gained 0.36 per cent during the week.

Profit-booking intensified towards the end of the week, dragging benchmark indices lower on Friday.

The Bank Nifty outperformed benchmark indices, advancing 3.7 per cent during the week, although it shed 0.8 per cent in the final trading session.

Foreign institutional investors (FII) extended their buying streak to three consecutive weeks following a ten-week selling phase. FII inflows amounted to Rs 33,340 crores during the week.

Moreover, crude oil prices recovered towards the end of the week as WTI traded around $88-89 per barrel and Brent near $95-96 amid renewed geopolitical tensions in the Middle East.

Fresh attacks on Saudi energy infrastructure, renewed threats to shipping through the Strait of Hormuz and US President Donald Trump’s remarks that the US is not looking for a deal with Iran further undermined hopes of an early de-escalation.

Higher global bond yields added pressure on the Indian rupee which weakened towards 94.20 against the US dollar.

In addition, broader market indices outperformed the benchmarks as Nifty Midcap 100 added 1.56 per cent and Nifty Smallcap 100 advanced 3.15 per cent during the week.

Investors are keen on the direction of US Treasury yields and the dollar, as further strength in either could tighten financial conditions and influence capital flows into emerging markets.

As per market experts, the immediate resistance for Nifty 50 is placed around 25,400–25,500 and key support remains at 24,800. Bank Nifty's immediate resistance is placed around 61,300–61,500, and 60,700–60,500 forms the immediate support zone.