Indian stock markets end week lower amid trade deal concerns, profit booking

Both benchmark indices -- the Sensex and the Nifty -- slipped 0.7 per cent each on a weekly basis, as broader market sentiment remained clouded by global uncertainty and profit booking after the recent rally.

The Nifty ended the week at 25,461, while the Sensex closed at 83,432.89. The indices had started the week with a strong breakout, but the momentum faded amid concerns over a possible delay in finalising trade agreements.

However, reports suggesting an interim deal between India and the US helped limit the downside in the latter half of the week.

According to Ajit Mishra of Religare Broking Limited, the pullback was largely driven by investors booking profits following recent gains.

“The cautious tone was evident with the looming trade deadline. However, optimism around a potential agreement between India and the US acted as a cushion,” he noted.

India’s fiscal health remained strong, supported by a robust Rs 2.69 lakh crore dividend transfer from the RBI, which helped contain the fiscal deficit at just 0.8 per cent of the annual target.

June GST collections also remained firm, rising 6.2 per cent year-on-year (YoY) to Rs 1.84 lakh crore.

Vinod Nair, Head of Research, Geojit Financial Services, said, “The week saw some consolidation after sharp gains in previous sessions. Global cues remained mixed, and investors preferred to stay on the sidelines ahead of the US tariff decision."

“FIIs turned cautious due to high valuations, but support from DIIs kept the market from falling sharply,” Nair mentioned.

From a sectoral perspective, defensive sectors like IT and healthcare outperformed, supported by stock-specific action and stable demand.

Meanwhile, rate-sensitive sectors such as banking, auto, and realty witnessed pressure from profit booking.

FMCG stocks also edged lower. Defence stocks, however, saw strong buying after the government cleared several high-value contracts.

Technically, the market entered a consolidation phase. Bajaj Broking Research noted that the Nifty has formed a small bear candle with a higher high and low on the weekly chart, signalling consolidation amid stock specific action after the recent strong upward move.

“Key support levels are seen around 25,150–25,200, coinciding with the 20-day exponential moving average, while resistance is expected near the 25,600–25,740 zone,” according to Angel One.

“A breakout above this range could trigger the next leg of the rally,” the brokerage added.