The Indian equity benchmarks rose for three consecutive days this week before finally retreating marginally, as investors booked profits when markets touched a two-month high amid the resumption of the India-US trade talks and Fed rate cut.
Benchmark indices Nifty and Sensex ended the week with a gain of around 0.85 per cent and 0.89 per cent even as IT and FMCG counters came under selling pressure. Midcap and small-cap indices ended marginally higher.
PSU banks extended their rally, with the Nifty PSU Bank Index rising over 1 per cent.
The Adani Group stocks saw strong buying after SEBI dismissed allegations made by Hindenburg Research. Adani Enterprises surged 6 per cent, while Adani Green Energy, Adani Energy Solutions, Adani Power Ltd and AWL Agri Business Ltd also made strong gains with some shares surging up to 12 per cent.
Technically, Nifty formed a bearish candle on daily frame but with a longer lower shadow indicating smart buying at lower levels. It formed a bullish candle on the weekly frame and has been making higher lows from the last three weeks.
Since the August lows, the benchmark indices had advanced nearly 4 per cent.
"With GST rationalisation set to take effect next week and festive demand expected to strengthen, investor attention turned toward consumption-driven sectors," said analysts.
Going forward, investors will closely track key US macro indicators — including GDP, jobless claims, and core inflation—for cues on the Fed's policy trajectory. On the domestic front, the upcoming manufacturing PMI will serve as a timely barometer of industrial sentiments, offering early signs of a much-awaited demand revival.
Meanwhile, the US equities hit fresh record highs, with the Dow, S&P 500, Nasdaq, and Russell 2000 climbing up to 1 per cent after the Federal Reserve resumed its rate-cutting cycle and signalled further easing. The Federal Open Market Committee (FOMC) decided to cut the target Fed Funds rate by 25 basis points. The median projections put real GDP growth in the US at 1.6 per cent year-over-year in 2025, the unemployment rate at 4.5 per cent and Core PCE inflation at 3.1 per cent.
