Indian benchmark indices Sensex and Nifty closed nearly 6% higher for the week, snapping a six-week losing streak after a ceasefire between the US and Iran. Both indices rose 1.2% on Friday. Investors adopted a risk-on approach amid reduced volatility.
Indian stock markets posted nearly 6% gains over the week, ending a six-week losing streak. The BSE Sensex closed 1.2%, or 919 points, higher at 77,550.25 on Friday, led by banking and financial services stocks. The Nifty 50 ended 1.2%, or 276 points, up at 24,050.60, with robust gains across all sectors except IT.
The rally followed US President Donald Trump's announcement on Wednesday of a two-week suspension of military strikes on Iran, just before his deadline. Iran agreed to reopen the Strait of Hormuz for shipments, sparking a 4% jump in Nifty and Sensex that session. Crude oil prices fell sharply from around $115 per barrel to the $95-100 range.
The India VIX, a gauge of market volatility, dropped 8% to its lowest in over three weeks. Foreign investors (FIIs) continued outflows but at a slower pace: $144 million on Thursday, versus Rs 672 crore inflows provisionally on Friday. Domestic investors remained robust.
Tensions persist post-agreement, with many doubting the ceasefire's durability.
