Oil slide powers India's stock benchmarks to longest weekly winning run 7 months
- The Nifty 50 rose 0.14% to 24,056 while BSE Sensex added 0.14% to 77,100.47
India's equity benchmarks secured a third consecutive weekly gain, fueled by falling crude oil prices, the RBI's dovish stance on interest rates, and measures attracting foreign inflows, despite some late profit-taking.
- Falling crude oil prices and their market impact.
- RBI's policy decisions supporting the rupee and inflows.
- Sectoral performance, including pharma gains and metal losses.
India’s equity benchmarks logged a third straight weekly gain on Thursday, their longest winning streak in seven months, as crude oil prices fell to pre-Iran-war levels and recent measures to support the rupee and attract overseas inflows lifted sentiment.
The Nifty 50 rose 0.14% to 24,056 and the BSE Sensex added 0.14% to 77,100.47.
They had risen over 1% each during the session, before seeing some profit taking in the final hour.
“As markets will be shut on Friday, investors trimmed their positions in late trades,” said Ankur Punj, managing director and business head at Equirus Wealth Brent crude fell 1.4% to $72.7 a barrel as more tankers exited the Strait of Hormuz following the initial U.S.-Iran peace deal, easing growth and inflation concerns for the world’s third-largest oil importer.
For the week, the Nifty and Sensex advanced 0.2% and 0.4%, respectively.
Reserve Bank of India Governor Sanjay Malhotra’s comments ruling out a near-term rate hike also helped sentiment. Lower borrowing costs have the potential to support earnings, consumption and valuations.
Six of 16 major sectors posted weekly gains. The broader small-caps were little changed and mid-caps fell 1.2%.
Pharma index gained 2.1% this week, after reports that the U.S. FDA reached out to Indian drugmakers for a critical cancer drug.
Investor preference for sectors less exposed to crude oil and El Nino risks aided pharma and healthcare stocks, two analysts said.
Heavyweight financials, banks and private lenders rose 1.3%, 0.9% and 1.5%, respectively, in the week after the RBI allowed loans against foreign-currency deposits.
“Below-normal monsoon is a near-term risk, but the central bank’s move to mobilise foreign-currency deposits and the government’s removal of bond taxes for foreign investors should support inflows and markets,” said Bajaj Finserv AMC.
Metals logged a weekly loss of 4.4%, tracking weaker global prices on rising U.S. rate hike expectations in 2026. Among stocks, Interglobe Aviation climbed 8.5% as lower oil eased cost concerns for the airline.
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