Sensex, Nifty snap eight-week losing streak as crude subsides

Mumbai: Indian equity benchmarks posted notable gains this week, snapping an eight‑week losing streak as crude oil prices retreated from recent highs.

Nifty added 0.44 per cent during the week and gained 1.30 per cent on the last trading day to reach 22,520.

At close, Sensex was up 879 points or 1.23 per cent at 72,472. It gained 0.78 per cent during the week.

On the sectoral front, IT led the recovery supported by a positive quarterly result, while banking, FMCG and auto also witnessed buying interest.

Broad market indices performed largely in line with the benchmark indices as Nifty Midcap100 added 0.09 per cent and Nifty Smallcap100 gained 0.44 per cent during the week.

Though global cues improved as Brent crude price eased, the elevated bond yields and continued foreign fund outflows keep sentiment cautious, analysts said.

"Participants should remain selective, maintain disciplined position sizing and favour a hedged approach amid elevated macroeconomic and earnings-related uncertainty," a market participant said.

Markets staged a strong recovery on Friday, taking a breather after the sharp sell-off in the previous session.

The 22,200–22,300 zone remains the immediate support area for Nifty, while the 22,700–22,800 zone remains the immediate resistance zone, according to the market experts.

Moreover, Nifty advanced in the first two sessions, came under pressure over the next two and rebounded sharply later. NSE cash-market turnover fell 14 per cent from the previous session.

Market breadth improved sharply with the advance–decline ratio rising to 1.35, pointing to renewed interest in mid- and small-cap stocks after their steep correction in recent sessions.

The rupee recovered after three consecutive sessions of weakness, strengthening against the US dollar in line with its Asian peers. It gained 5 paise to close at 96.71. The dollar weakened as crude prices eased and global risk appetite improved.

Market sentiment improved after US President Donald Trump said the US would refrain from military action against Iran ahead of the November midterm elections. The Reserve Bank of India (RBI) also likely intervened, providing further support to the rupee.

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