Sensex, Nifty end flat on trade war worries; Reliance leads gains
Markets closed nearly flat on Friday, with key indices showing minimal movement despite the overall market capitalization reaching a five-day high of ₹39.9 lakh crore. The Sensex concluded at 74,332.58 while Nifty 50 settled at 22,552.50, virtually unchanged from the previous day, as investors maintained a cautious stance amid mixed global cues.
Reliance Industries emerged as the top gainer on the NSE, surging 3.04 per cent with substantial trading volume of 1.64 crore shares. Other significant gainers included Tata Motors, which rose 1.23 per cent, BEL up by 1.19 per cent, Bajaj Auto gaining 1.19 per cent, and Hindalco adding 1.17 per cent.
On the losing side, IndusInd Bank led the decliners with a sharp drop of 3.78 per cent, followed by NTPC falling 2.22 per cent, Shriram Finance down 2.07 per cent, Infosys declining 1.80 per cent, and BPCL retreating 1.72 per cent.
“Despite mixed global cues, Nifty opened above the 22,500 mark at 22,508. It recorded an intraday low of 22,464 and touched a high of 22,633, largely trading within a narrow range throughout the session,” said Sundar Shivratan Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity.
The broader market activity remained robust with 2,512 advances against 1,468 declines on the BSE, where a total of 4,114 stocks were traded. The session saw 55 stocks reaching 52-week highs, while 77 touched their 52-week lows. Additionally, 18 stocks hit the upper circuit limit, with 5 hitting the lower circuit.
Sectoral performance showed divergence, with oil and gas, metals, and automobile sectors displaying strength while realty and IT segments lagged. “Sector-wise, Oil & Gas, Metals, and Automobiles showed strength, while weakness was observed in Realty and IT,” noted Kewat.
The Indian rupee showed significant strength, posting its largest weekly gain since March 2023. “The Indian rupee registered the biggest weekly gain since March 2023 as the dollar index retreated. The stronger government sovereign bonds, central bank’s liquidity measures and lower crude oil prices support the rupee in past few days,” said Dilip Parmar, Research Analyst at HDFC Securities. The rupee closed at 86.92 against the US dollar, gaining 0.18 rupees.
On a weekly basis, Indian markets demonstrated remarkable resilience, with the Nifty ending 1.93 percent higher while the Sensex gained 1130 points. “Among sectors, all the major sectoral indices traded in positive territory, with the Defence and Metal indices gaining the most. The Defence Index gained 10.50 percent, and the Metal Index rallied 9 percent,” highlighted Amol Athawale, VP-Technical Research at Kotak Securities.
Market experts pointed to global factors influencing investor sentiment. “The global market is experiencing a heightened uncertainty due to US tariff impositions and counter threats from its peers. This ambiguity has led to increased risk aversion and diminished appeal of equities,” explained Vinod Nair, Head of Research at Geojit Financial Services. He added, “In contrast, Indian markets have demonstrated resilience off late despite looming trade war.”
Technical analysts remain cautiously optimistic about near-term prospects. “The sentiment remains positive, with the potential to reach higher levels in the short term. On the higher end, immediate resistance is seen at 22,700–22,750. On the lower end, support is placed at 22,400, below which the index may lose momentum,” said Rupak De, Senior Technical Analyst at LKP Securities.
The week concluded with the total market capitalization reaching ₹39,899,021 crore, representing steady growth from Monday’s ₹38,444,417.77 crore. The top 10 companies’ market capitalization rose to ₹8,976,262.10 crore, reflecting increasing concentration of market value among leading firms.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed, “A small positive candle was formed on the daily chart with reasonable upper shadow. Technically, this market action signal a consolidation movement at the overhead resistance. The underlying short-term trend of Nifty remains positive.”
As markets head into the next week, Ajit Mishra, SVP of Research at Religare Broking Ltd, advised, “Given the mixed signals, we recommend maintaining a positive yet cautious stance, with a focus on prudent position sizing.”
