Mumbai: Indian equity markets closed the week on a positive note, supported by expectations of stronger domestic demand, a favourable liquidity outlook and optimism around possible US Fed policy easing in 2026, analysts said.
The holiday-shortened week opened with a bullish undertone; however, momentum tapered off as the days progressed.
On Friday, Sensex closed at 85,041.45, slipping 367.25 points or 0.43 per cent. Nifty also ended in the red, falling 99.80 points or 0.38 per cent to settle at 26,042.30.
According to market watchers, the year-end lull kept trading largely range-bound, with hopes for a Santa Claus rally diminishing amid the absence of fresh catalysts, limited progress in US–India trade talks, and caution ahead of the upcoming earnings season.
“Sectoral trends were mixed, marked by selective profit booking across most segments, while metals, FMCG, and media stocks offered notable resilience,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
Nifty 50 ended the week at 26,042, continuing to respect its long-term rising channel on the daily chart. The index remains comfortably above the 20-day EMA cluster, preserving the medium-term bullish structure, said analysts, adding that as long as Nifty sustains above the 26,000–25,900 support zone, the overall bias remains positive.
On the domestic front, RBI’s liquidity interventions, such as open market operations and a USD/INR buy–sell swap, helped stabilise the rupee, though persistent FII outflows continued to weigh on sentiment.
Meanwhile, gold advanced on safe-haven demand, while crude prices hovered near multi-year lows, though U.S. steps to tighten pressure on Venezuelan oil shipments could exert upward pressure in the near term
Looking ahead, market sentiment is likely to stay cautious as investors brace for the upcoming earnings season while remaining attuned to global developments and currency movements, said analysts.
Attention will also turn to next week’s data releases, including India’s industrial and manufacturing output figures, manufacturing PMI, and the US FOMC minutes, said Nair.
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Photo: Nitin Lawate/IANS
—IANS
