Sensex, Nifty Flat Amid Q3 Earnings Optimism, Trade Deal Hopes

Profit-booking in pharma, consumer durables, and autos weighed on indices during the week, while PSU banks and metals outperformed.

Nifty added 0.04 per cent during the week and 0.11 per cent on the last trading day, to touch 25,694. At close, the Sensex was up 187 points or 0.23 per cent on the last trading day at 83,570. It dipped 0.01 per cent during the week.

Analysts said investors focused on Q3 earnings, where IT and bank numbers provided a layer of confidence on growth and demand. The prolonged geopolitical tensions made FIIs risk-averse in emerging markets and raised bond yields.

On the earnings front, the IT sector gained attention after the industry's bellwether revised its revenue guidance upward, while the broader IT space reported better-than-expected earnings growth.

The banking sector also showed encouraging trends, with early results showing continued improvement in asset quality and better earnings performance.

Collectively, these trends set a constructive tone for the Q3 FY26 season and continue to strengthen investor confidence in domestic earnings recovery, an analyst said.

Bank Nifty posted a confident close, forming a bullish candlestick, while the RSI (Relative Strength Index) confirmed strength with a bullish crossover and is currently placed near 61.

Broader indices outperformed the benchmark indices during the week, with the Nifty Midcap 100 up 0.20 per cent, while Nifty Smallcap 100 advanced 0.46 per cent.

Investors remain focused on the US Supreme Court's verdict on the legality of US President Donald Trump's tariffs which is expected soon, but timeline is not certain.

They also keep an eye on key global macro indicators, including US PCE inflation and GDP prints, which will offer cues on the Federal Reserve's rate outlook.

- IANS