MUMBAI— India’s benchmark indices closed higher this week, ending a six-week slide with a 1% gain, despite persistent geopolitical uncertainties.
Investor attention is now on the upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, amid hopes it could pave the way for a Russia–Ukraine ceasefire and the removal of the additional 25% tariff on Indian goods.
The Nifty IT index led sectoral gains, while Nifty Metal and Nifty FMCG ended lower. Broader markets underperformed, with the Nifty Midcap and Nifty Smallcap indices both closing in negative territory.
With June quarter (Q1 FY26) earnings season wrapping up, revenue moderation kept average year-on-year net profit growth for Nifty 50 companies — excluding financials and oil and gas — in the mid-single digits. Overall results were in line with market expectations, though the anticipated rebound in urban demand has yet to materialize.
Vinod Nair, Head of Research at Geojit Financial Services, noted that healthcare and public-sector banks outperformed thanks to strong earnings and stable asset quality.
“Benign domestic inflation at an eight-year low is boosting hopes for a revival in discretionary spending. Additionally, S&P’s upgrade of India’s sovereign credit rating to BBB is expected to lift investor sentiment and support long-term growth,” he said.
Nair added that global cues remain favorable, with softer U.S. inflation data and a drop in the 10-year Treasury yield reinforcing expectations of a Federal Reserve rate cut in September.
Technically, the Nifty is expected to trade between 24,350 and 24,750, with a decisive break above 24,750 potentially extending gains toward the psychological 25,000 level.
On Thursday, foreign institutional investors (FIIs) were net sellers, offloading ₹1,926 crore worth of equities. They bought shares valued at ₹13,646 crore but sold ₹15,572 crore. Domestic institutional investors (DIIs) were net buyers, adding ₹3,895 crore, with gross purchases of ₹13,144 crore and sales of ₹9,248 crore. (Source: IANS)
