Indian equity markets ended the week on a subdued note, marking the second consecutive week of consolidation as investors remained cautious amid global trade uncertainties and awaited key domestic policy cues.
Volatility persisted throughout the week, with benchmark indices Sensex and Nifty reacting to developments around U.S. tariff policy and the upcoming Reserve Bank of India (RBI) monetary policy review. The Nifty closed the week at 24,750.70, while the Sensex ended at 81,451.01.
Despite encouraging domestic cues, mixed signals from global markets kept investor sentiment on edge. Optimism at the start of the week—driven by the RBI’s record dividend payout and positive monsoon updates—gave way to caution,” said Ajit Mishra, Senior Vice President – Research, Religare Broking Ltd.
Sectoral performance reflected the broader market consolidation. The realty index extended its winning streak for a third consecutive week, while banking and energy stocks also ended in the green. On the other hand, the FMCG, auto, and metal sectors underperformed, emerging as key drags.
Midcap and smallcap indices outpaced the benchmarks, gaining nearly 1.5% each, even as broader market sentiment remained tepid.
Vinod Nair, Head of Research at Geojit Financial Services, said that ongoing global trade frictions—exacerbated by the temporary pause and reinstatement of former U.S. President Donald Trump’s reciprocal trade policies—signal continued macroeconomic pressures for emerging markets.
“However, domestic indicators remain favourable, including a strong monsoon forecast, benign inflation outlook, and robust Q4 GDP growth of 7.4%. These factors offer some downside protection. The market is also factoring in a potential 25 bps rate cut, which would benefit rate-sensitive sectors,” Nair added.
Investor focus will now shift to the RBI’s Monetary Policy Committee (MPC) meeting on June 6, where clarity on the interest rate trajectory will be critical amid the current macroeconomic landscape.
With the new month underway, markets will also track high-frequency indicators such as auto sales, economic data releases, and updates on the progress of the monsoon. Foreign institutional investor (FII) flows will be another key area of focus.
Globally, movements in the U.S. bond market and developments in trade negotiations are likely to continue influencing sentiment in the coming weeks.
–Input IANS
Indian Markets Log Second Straight Week of Consolidation Amid Global Uncertainty
Staff reporter
Indian equity markets ended the week on a subdued note, marking the second consecutive week of consolidation as investors remained cautious amid global trade uncertainties and awaited key domestic policy cues.
Volatility persisted throughout the week, with benchmark indices Sensex and Nifty reacting to developments around U.S. tariff policy and the upcoming Reserve Bank of India (RBI) monetary policy review. The Nifty closed the week at 24,750.70, while the Sensex ended at 81,451.01.
Despite encouraging domestic cues, mixed signals from global markets kept investor sentiment on edge. Optimism at the start of the week—driven by the RBI’s record dividend payout and positive monsoon updates—gave way to caution,” said Ajit Mishra, Senior Vice President – Research, Religare Broking Ltd.
Sectoral performance reflected the broader market consolidation. The realty index extended its winning streak for a third consecutive week, while banking and energy stocks also ended in the green. On the other hand, the FMCG, auto, and metal sectors underperformed, emerging as key drags.
Midcap and smallcap indices outpaced the benchmarks, gaining nearly 1.5% each, even as broader market sentiment remained tepid.
Vinod Nair, Head of Research at Geojit Financial Services, said that ongoing global trade frictions—exacerbated by the temporary pause and reinstatement of former U.S. President Donald Trump’s reciprocal trade policies—signal continued macroeconomic pressures for emerging markets.
“However, domestic indicators remain favourable, including a strong monsoon forecast, benign inflation outlook, and robust Q4 GDP growth of 7.4%. These factors offer some downside protection. The market is also factoring in a potential 25 bps rate cut, which would benefit rate-sensitive sectors,” Nair added.
Investor focus will now shift to the RBI’s Monetary Policy Committee (MPC) meeting on June 6, where clarity on the interest rate trajectory will be critical amid the current macroeconomic landscape.
With the new month underway, markets will also track high-frequency indicators such as auto sales, economic data releases, and updates on the progress of the monsoon. Foreign institutional investor (FII) flows will be another key area of focus.
Globally, movements in the U.S. bond market and developments in trade negotiations are likely to continue influencing sentiment in the coming weeks.
–Input IANS
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