Benchmark indices Sensex and Nifty posted a third consecutive weekly gain on Thursday, their longest winning streak this year, as easing crude oil prices and policy measures to support the rupee and mobilise foreign currency deposits boosted investor sentiments.
After gaining as much as 1.05 per cent, the Sensex gave up most of its gains and ended the session at 77,101, a gain of 109 points, or 0.14 per cent. Nifty, meanwhile, ended the session at 24,056, a gain of 34 points, or 0.14 per cent. For the week, the Sensex gained 0.4 per cent and the Nifty 0.2 per cent. For both indices, this was the third consecutive weekly gain, the longest weekly winning streak since December 2025. The total market capitalisation of BSE-listed firms stood at ₹475 trillion, down ₹1.3 trillion.
Brent crude prices, which are back to their pre-Iran war levels, continued their decline, trading at $73.5 per barrel. Brent crude prices are falling as more tankers resume passage through the Strait of Hormuz, a critical route for global oil supply. The US-Iran war led to the closure of the Strait, triggering a global energy crisis. Lower oil prices are a positive for net importers of oil.
Reserve Bank of India (RBI) governor’s remarks that eased concerns over interest rate hikes, and the central bank’s clarification allowing lenders to extend loans against foreign currency deposits also contributed to the gains this week. However, concerns about slowing economic activity and a rout in information technology (IT) and metal stocks prompted investors to take money off the table, capping gains.
The economic activity slowdown was reflected in factory and services activity. HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 57.4 in June from 59.3 in May. The services PMI fell to a 17-month low of 57.3 from 59.8, while the manufacturing PMI slipped to a low of 54.5 in June from 55 in the previous month.
Going forward, investors will be tracking the trajectory of the monsoons for further cues.
“Indian equity markets navigated a week of mixed signals with notable resilience, ending the truncated four-day week marginally higher, even as broader indices, especially midcaps, faced modest selling pressure. The sharp correction in crude oil prices to pre-war levels, supported by improved traffic at the Strait of Hormuz, easing geopolitical risks amid progressing US-Iran talks, and optimism around an India-US trade deal, helped fuel domestic investor sentiment. However, expectations of rising inflationary pressure and a potential dampening in rural demand began to surface, driven by concerns over uneven monsoon distribution,” said Vinod Nair, head of research at Geojit Financial Services.
The market breadth was weak, with 2,627 stocks declining and 1,602 advancing. Indigo, which gained 4.73 per cent, was the biggest gainer in the Sensex pack, followed by Mahindra & Mahindra, which gained 3.82 per cent. Gold, after declining for the last two sessions, rose 0.4 per cent to $4,015 per ounce.
“Despite favourable cues, the Nifty continues to face a lack of momentum. A decisive close above 24,200 remains critical for bulls to maintain firm control. Amid the prevailing scenario, we continue to maintain a positive yet cautious stance, and reiterate our preference for a stock-specific approach across sectors,” said Ajit Mishra, senior vice-president (SVP)-research of Reliagre Broking.
