Indian equities ended the week with gains, rebounding from two consecutive weeks of losses, as a surprise policy pivot by the Reserve Bank of India (RBI) lifted sentiment, particularly in interest rate-sensitive sectors such as financials and real estate.
The benchmark NSE Nifty 50 index rose 1% for the week to close at 25,003, while the S&P BSE Sensex advanced 747 points on Friday to end at 82,189. The Nifty Bank index gained nearly 2% during the week, ending Friday at 56,578. Broader market outperformance continued, with the Nifty Midcap 100 surging over 3% to 59,010, reflecting robust investor appetite beyond the frontline indices.
Markets surged on Friday after the RBI delivered an unexpected 50 basis point cut in the repo rate and eased the cash reserve ratio (CRR), citing improved inflation dynamics and the need to support growth. The central bank’s dovish pivot sparked a rally across rate-sensitive sectors, with banks, non-banking financial companies (NBFCs), and realty stocks leading gains.
The Nifty Realty index jumped 5% on expectations of a revival in housing demand, driven by lower borrowing costs. Financials also surged, buoyed by RBI’s commentary on easing risk in unsecured loans and confidence that recent stress in IndusInd Bank would soon abate. IndusInd Bank shares closed 3% higher.
Among financials, Muthoot Finance rose 7% amid optimism over relaxed norms for gold financiers. Shares of ICICI Lombard climbed 7% following reports of a potential hike in motor insurance premiums, signaling better pricing power ahead for general insurers. SBI Card, RBL Bank, and Aditya Birla Capital also saw strong buying interest.
Top Nifty gainers for the week included Shriram Finance, Dr. Reddy’s Laboratories, Mahindra & Mahindra, Adani Ports, and Jio Financial. In the broader market, Prestige Estates, CDSL, MCX, Swiggy, L&T Finance, and Muthoot Finance emerged as the top midcap performers, rallying between 6–10%.
A total of 35 Nifty constituents ended the week in the green. The advance-decline ratio stood at a healthy 3:2, indicating broad-based participation in the rally.
Despite the upbeat tone, profit booking was seen in select pockets. Defence stocks came under pressure, with Solar Industries and Hindustan Aeronautics declining 3% and nearly 2%, respectively. The media index was the only sectoral laggard on a weekly basis.
The RBI’s surprise policy shift has added fresh fuel to a market already optimistic on India's macroeconomic outlook. With improved liquidity conditions and easing borrowing costs, analysts expect the rally in rate-sensitive sectors to extend, although global cues and monsoon progress will remain key near-term triggers.
The benchmark NSE Nifty 50 index rose 1% for the week to close at 25,003, while the S&P BSE Sensex advanced 747 points on Friday to end at 82,189. The Nifty Bank index gained nearly 2% during the week, ending Friday at 56,578. Broader market outperformance continued, with the Nifty Midcap 100 surging over 3% to 59,010, reflecting robust investor appetite beyond the frontline indices.
Markets surged on Friday after the RBI delivered an unexpected 50 basis point cut in the repo rate and eased the cash reserve ratio (CRR), citing improved inflation dynamics and the need to support growth. The central bank’s dovish pivot sparked a rally across rate-sensitive sectors, with banks, non-banking financial companies (NBFCs), and realty stocks leading gains.
The Nifty Realty index jumped 5% on expectations of a revival in housing demand, driven by lower borrowing costs. Financials also surged, buoyed by RBI’s commentary on easing risk in unsecured loans and confidence that recent stress in IndusInd Bank would soon abate. IndusInd Bank shares closed 3% higher.
Among financials, Muthoot Finance rose 7% amid optimism over relaxed norms for gold financiers. Shares of ICICI Lombard climbed 7% following reports of a potential hike in motor insurance premiums, signaling better pricing power ahead for general insurers. SBI Card, RBL Bank, and Aditya Birla Capital also saw strong buying interest.
Top Nifty gainers for the week included Shriram Finance, Dr. Reddy’s Laboratories, Mahindra & Mahindra, Adani Ports, and Jio Financial. In the broader market, Prestige Estates, CDSL, MCX, Swiggy, L&T Finance, and Muthoot Finance emerged as the top midcap performers, rallying between 6–10%.
A total of 35 Nifty constituents ended the week in the green. The advance-decline ratio stood at a healthy 3:2, indicating broad-based participation in the rally.
Despite the upbeat tone, profit booking was seen in select pockets. Defence stocks came under pressure, with Solar Industries and Hindustan Aeronautics declining 3% and nearly 2%, respectively. The media index was the only sectoral laggard on a weekly basis.
The RBI’s surprise policy shift has added fresh fuel to a market already optimistic on India's macroeconomic outlook. With improved liquidity conditions and easing borrowing costs, analysts expect the rally in rate-sensitive sectors to extend, although global cues and monsoon progress will remain key near-term triggers.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!