Markets post biggest weekly gain in four months, Nifty Bank leads

The stock market extended its winning streak for the third consecutive week, with benchmark indices logging their biggest weekly gains in four months amid positive global cues and strong earnings from

heavyweights.

The Sensex and Nifty each rose nearly 2%, marking a robust recovery in investor sentiment after recent volatility.

The Nifty Bank index moved largely in line with the benchmarks, also gaining close to 2%, while the midcap index underperformed, adding a modest 0.3%. Sectorally, realty and FMCG shares led the rally, both climbing around 3%.

Out of the 40 Nifty constituents, 36 advanced, with Nestle India, Asian Paints, M&M, and Adani Ports among the top gainers. On the downside, Infosys, Wipro, and TCS were the biggest laggards following muted Q2 commentary from the IT sector.

The market closed the week at new milestones, with the Sensex and Nifty hitting one-year highs and the Nifty Bank scaling a fresh record.

"The market has continued its upward momentum, reaching a new 52-week high, largely driven by consumption-oriented stocks, anticipating improved volume growth. Inline earnings from banks and signs of easing asset quality stress have bolstered overall industry optimism. Conversely, the IT index has faced pressure due to concerns over discretionary spending and rising asset quality risks in the U.S. banking system. Global economic disruptions like escalating trade war and slowing economic data have made investors jittery, prompting them to seek refuge in gold, which has surged to a new all-time high. Despite these global uncertainties, the resilient domestic economic performance has bolstered investor sentiment, keeping Indian equities largely insulated," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The Sensex briefly crossed the 84,000 mark intraday before settling 485 points higher at 83,952, while the Nifty rose 125 points to 25,710. The Nifty Bank gained 291 points to 57,713, whereas the midcap index fell 339 points to 58,902, underperforming the broader market.

Gains were led by Reliance Industries, which firmed ahead of its quarterly results, and banking majors HDFC Bank and ICICI Bank, each up about 1%. FMCG stocks continued to see strong traction, with Asian Paints, HUL, and ITC among the top gainers, while M&M extended its winning run, climbing 3%.

In the broader market, Max Healthcare gained 2% after an upgrade from UBS, while Delhivery, PG Electroplast, Laurus Labs, TVS Motor, and Bharat Dynamics were top midcap performers.

Muthoot Finance rose 2% tracking higher gold prices, whereas Yes Bank slipped 3% after SMBC’s chief said the lender was not looking to raise its stake.

PB Fintech extended losses amid reports of renegotiations on insurance commissions. Market breadth remained weak, with the advance-decline ratio standing at 1:2, reflecting a narrow rally led by large caps.