Indian equity markets ended the week on a firm note, with benchmark indices posting gains amid falling crude oil prices, optimism surrounding a possible US-Iran peace agreement, and strong global market cues. Investors will now closely track geopolitical developments, crude oil trends, quarterly earnings and foreign fund activity in the trading week beginning Monday, May 25.
The Sensex advanced 499 points, or 0.7%, during the week to settle at 75,415, while the Nifty 50 gained 147 points, or 0.6%, to close above the 23,750 mark. Market sentiment improved after Brent crude prices corrected sharply and global equities rallied to record highs.
One of the biggest triggers for markets this week was the nearly 7% fall in Brent crude prices from around $112 per barrel to nearly $104 per barrel. Investors remained optimistic that a potential diplomatic breakthrough between the US and Iran could help stabilise oil supplies through the strategically important Strait of Hormuz and reduce pressure on global inflation.
Global markets also remained upbeat. US indices rallied strongly, with the Dow Jones Industrial Average climbing 2.1% to record highs, while the S&P 500 marked its eighth consecutive week of gains. Asian markets surged up to 8%, led by technology stocks, after strong earnings from NVIDIA and Walmart boosted global risk appetite.
Domestically, easing crude oil prices and a recovery in the rupee further supported sentiment. The USD/INR pair cooled to near the 95.7 mark after hitting recent highs, improving confidence among investors.
Sectorally, the Nifty IT index emerged as the top-performing sector of the week, rallying more than 4% amid renewed buying interest and improving global technology sentiment. Realty, Oil & Gas and Defence stocks also witnessed strong traction.
The Nifty Defence index gained nearly 2% during the week amid optimism around India’s growing defence cooperation with South Korea and progress in India–Italy defence collaborations. Meanwhile, Oil & Gas stocks benefited from lower crude oil prices, which are expected to ease cost pressures for several downstream companies.
Market participants will also keep a close eye on foreign institutional investor activity after FIIs remained net sellers worth ₹7,571 crore during the week. Domestic institutional investors, however, provided support with net buying of ₹16,947 crore.
Analysts expect stock- and sector-specific action to dominate next week as the quarterly earnings season continues. Key companies scheduled to announce results include Suzlon Energy, RVNL, NBCC, ONGC, IRCTC, Ashok Leyland, Bharat Dynamics, Asian Paints, Glenmark Pharma, Natco Pharma and BEML among others.
Investors will additionally monitor major global economic data points including US GDP figures, durable goods orders, personal spending data, inflation numbers from Europe, and India’s fiscal deficit and forex reserve data due later in the week.
From a technical perspective, analysts said Nifty needs to hold above the 23,700 zone to maintain upward momentum towards 23,950 and 24,100 levels. For Bank Nifty, support is placed near 53,750, while resistance is seen around 54,500–54,750 levels.
Among sectors likely to remain in focus next week are oil marketing companies due to falling crude prices, pharma stocks on the back of strong US business momentum, defence companies amid geopolitical developments, and capital goods and energy stocks supported by rising power demand during the summer season.
Commodity markets also remained active this week. Gold prices slipped around 1% amid rising US bond yields and expectations of tighter monetary policy, while Brent crude corrected sharply on hopes of easing geopolitical tensions.