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Indian Markets Rise on Easing Crude and Rupee Gains Despite Geopolitical Risks

Indian equity benchmarks Nifty and Sensex posted notable gains this week, driven by easing crude prices, a firmer rupee, and softer bond yields. Nifty gained 0.76% for the week while Sensex advanced 0.54%, despite dipping on the last trading day due to US-Iran tensions. Midcap and Smallcap indices outperformed, with sectors like autos, defence, realty, and pharma seeing strong buying interest. Markets ended lower Friday after Iran claimed the US violated a ceasefire, though crude prices declined over 3% to below $95 per barrel.

Key Points: Nifty, Sensex Gain This Week on Easing Crude, Rupee Strength

  • Nifty gains 0.76% for the week
  • Sensex up 0.54% despite Friday dip
  • Midcap and Smallcap indices outperform
  • Crude oil declines over 3% to below $95
  • Geopolitical tensions between US and Iran remain a key risk
2 min read

Nifty, Sensex rise notably this week as crude prices ease, rupee strengthens

Indian equity benchmarks Nifty and Sensex rose this week as crude prices eased and the rupee strengthened, despite geopolitical tensions. Midcaps outperformed.

"The improvement in macro conditions shifted sentiment from early-week caution to a more constructive stance - analyst"

Mumbai, May 9

The Indian equity benchmarks posted notable gains during the week over easing crude prices, a firmer rupee and softer 10-year bond yields despite lingering geopolitical tensions.

Nifty gained 0.76 per cent during the week and dipped 0.60 per cent on the last trading day to reach 24,180. At close, Sensex was down 516 points or 0.66 per cent at 77,328. It advanced 0.54 per cent during the week.

"The improvement in macro conditions shifted sentiment from early-week caution to a more constructive stance, allowing markets to absorb profit booking triggered by fresh headlines towards the end of the week," an analyst said.

Investor confidence was further supported by favourable state election outcomes and Q4 earnings that came in better than cautious expectations. Midcap and smallcap indices outperformed benchmark indices, while sectors such as autos, defence, realty, and pharma witnessed strong buying interest.

Nifty Midcap100 added 3.49 per cent, while Nifty Smallcap100 gained 4.05 per cent during the week.

While stable crude prices and rupee recovery offer near-term support, any renewed escalation in West Asia remains a key risk, particularly for commodity-sensitive sectors, they added.

The markets ended lower on the last day of the trading week as the United States and Iran exchanged fire which prompted investors to reassess expectations of a near-term peace deal and rekindled energy supply chain concerns.

Iran claimed the US had violated the ceasefire agreement. However, US President Donald Trump reaffirmed that the ceasefire remained in effect, and Iran said the situation has returned to normal.

Brent crude oil declined over 3 per cent in international markets to trade below the $95-per-barrel mark, while domestic crude futures slipped below the Rs 9,000 level, reversing much of the previous session's escalation-driven rebound.

Meanwhile, Nifty 50 is expected to see the 24,250-24,300 level as an immediate resistance zone and the 24,100-24,000 band remains a crucial support area, market participants said.

In Bank Nifty, a sustained move above 55,500 could extend the recovery toward 55,800-56,000, strengthening near-term momentum, they added.

Investors remain keen on cues from India and US inflation data, along with domestic credit growth trends, as these will influence RBI rate expectations and corporate margin outlook.

- IANS

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Reader Comments

A
Ananya R
Good to see the markets bouncing back despite global uncertainties. The state election results definitely boosted sentiment - stability matters for investor confidence. But I'm a bit concerned about the resistance at 24,250-24,300. Nifty needs to break above that convincingly for a sustained rally. Also, RBI rate expectations are crucial now.
K
Karthik V
Pharma and auto sectors leading the charge! Just what the doctor ordered for long-term investors. The Q4 earnings being better than expected is a good sign for the economy overall. But honestly, this US-Iran thing is worrying - one news headline can wipe out weeks of gains. Might book some profits next week, just to be safe.
P
Priya S
As a retail investor, I'm cautiously optimistic. The macro picture is improving - crude down, rupee up, bond yields softer. But the geopolitical risks remain real. The Bank Nifty support at 55,500 is critical - if it holds, we could see a strong recovery towards 56,000. Let's watch the US inflation data closely next week.
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Nikhil C
Smallcap index up 4% in a week! 📊 That's where the real action is for those with risk appetite. But one must be careful - smallcaps can fall just as fast. The Q4 earnings season has been decent overall, but credit growth trends will be key for banking stocks going forward.
A
Aditya G
Good week overall but let's not get carried away. The market ended lower on Friday due to geopolitical tensions. That tells you how fragile this rally is. The

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