MUMBAI– Indian equities ended the week on a strong note, with benchmark indices climbing as investors bet on stronger earnings in the second half of FY26, aided by expected GST rationalisation and supportive monetary policy.
The Nifty rose 1.32 percent, closing at 25,114, while the Sensex added 1.21 percent. Midcap and small-cap stocks outperformed the benchmarks, underscoring broad-based market strength.
The rally was led by auto and information technology shares. The IT index gained momentum following renewed expectations of a U.S. Federal Reserve rate cut, Infosys’ share buyback announcement, and optimism over a rebound in global technology spending.
On the technical front, Nifty advanced 373 points, forming a robust bullish candle for the week. Analysts noted the index has broken out of a symmetrical triangle pattern, signaling room for further gains. Choice Equity Broking said Nifty’s ability to hold above the 25,100 mark reinforced the bullish trend, with resistance seen at 25,160, 25,250, and 25,500, and support at 25,000 and 24,900.
Consumer-oriented sectors also contributed to the rally. Auto and FMCG stocks advanced on expectations that GST cuts will bolster consumption and drive demand recovery, said Vinod Nair, Head of Research at Geojit Financial Services.
Macro headwinds remain in focus. Domestic CPI inflation edged higher, and continued foreign portfolio outflows pressured the rupee. Meanwhile, global trade tensions pushed gold prices to fresh record highs.
In the U.S., August retail inflation climbed to 2.9 percent, the highest since January, while core inflation held steady at 3.1 percent. Slowing job growth shifted investor expectations toward accelerated Fed easing. The 10-year U.S. Treasury yield fell to 4 percent, its lowest level since April.
While some analysts caution against rate cuts given persistent inflation, consensus is building around a 25-basis-point reduction at next week’s Federal Open Market Committee meeting, with as many as three cuts anticipated through 2025. (Source: IANS)
