Benchmark stock market indices closed the week positively, with the Sensex and Nifty making a strong recovery, gaining over 0.5%. The S&P BSE Sensex rose by 504.86 points to finish at 78,493.54, while the NSE Nifty50 climbed 156.80 points to settle at 24,353.55.
Vinod Nair, the Head of Research at Geojit Investments Limited, mentioned that the market ended higher, driven by improving prospects for a resolution in the Middle East and a shift in FII flows towards net buying. Factors like a ceasefire between Israel and Lebanon, keeping crude oil prices below $100/bbl, and a stronger rupee due to RBI measures and reduced geopolitical tensions, contributed to the positive market sentiment.
The FMCG sector led the gains, supported by price increases, positive business updates, and favorable valuations. Post-market closure, Hindustan Unilever Ltd topped the Sensex gainers chart with a 4.70% increase. This was followed by Power Grid Corporation of India Ltd, up by 1.91%, Reliance Industries Ltd with a 1.53% gain, Bharat Electronics Ltd adding 1.43%, and Titan Company Ltd rising by 1.34%.
On the downside, Sun Pharmaceutical Industries Ltd witnessed the steepest decline, dropping by 1.04%. Other notable decliners included Mahindra and Mahindra Ltd (-0.60%), HCL Technologies Ltd (-0.50%), Larsen and Toubro Ltd (-0.37%), and Eternal Ltd (-0.14%).
The market rally was underpinned by robust performances across different sectors, instilling investor confidence and driving active trading activities. Nair emphasized the significance of the ongoing Q4 earnings season, highlighting its role as a crucial evaluation point for FY27 estimates.