Financials, metals lift Indian benchmarks to weekly gains as geopolitical, trade fears ease

India’s benchmark indexes closed higher on Friday, with financials and metals stocks lifting them to weekly gains, as easing geopolitical tensions and optimism around global trade spurred risk-on sentiment.

The Nifty 50 gained 0.35% to 25,637.8, and the BSE Sensex rose 0.36% to 84,058.9.

The benchmarks extended gains for a fourth straight session following the announcement of a ceasefire between Israel and Iran, which has helped push oil prices lower. The Nifty and Sensex now sit just 2.5% below their all-time highs hit on September 27, 2024.

“Despite lingering global risks, bulls have shown remarkable resilience, and the current momentum could take Nifty closer to its record highs,” said Sameet Chavan, head of research at Angel One.

Broader Asian markets climbed on Friday after a US-China deal to fast-track rare earth shipments signalled easing trade tensions between the world’s two largest economies.

For the week, the Nifty and the Sensex rose about 2%, led by index heavyweights HDFC Bank and Reliance Industries.

Eleven of the 13 major sectors advanced this week. Financials rose 2.6%, led by a 2.6% gain in HDFC Bank, supported by expectations of lower funding costs and strong GDP growth.

Buzz around the public listing of HDFC Bank’s subsidiary HDB Financial Services also underpinned sentiment.

Reliance, financials lead rise in Indian shares

The metals index gained 4.8% for the week, making it the top sectoral gainer, as a weaker dollar made the greenback-denominated assets cheaper for holders of other currencies.

Expectations of deeper US rate cuts and uncertainty ahead of Trump’s July 9 tariff deadline pressured the dollar.

The broader small-caps and mid-caps rose about 4.3% and 2.4% this week.

Among individual stocks, Jio Financial Services rose 3.5% on Friday and about 10% for the week after receiving regulatory approval for its stock broking unit.

Parent Reliance gained for the third straight session, gaining 3.4% this week on upbeat earnings expectations from multiple brokerages.