Markets Rally 5 Days: Geopolitics Eases, Rupee Strengthens

Indian equity markets closed Friday on a positive note, marking the fifth consecutive day of gains. Easing geopolitical tensions in West Asia, coupled with softer crude oil prices and a strengthening rupee, sustained constructive investor sentiment.

The BSE Sensex concluded at 78,493.54, up 0.65%, while the Nifty 50 closed at 24,353.55, also gaining 0.65%. For the week, the Nifty recorded a 1.3% increase, capping a ten-session rally of nearly 10%.

Broader markets notably outperformed benchmarks, with the Midcap 100 and Smallcap 100 indices rising significantly. A key theme was the rotation into defensive stocks, with the Nifty FMCG index leading the sectoral gains.

Decreasing crude oil prices, driven by a ceasefire between Israel and Lebanon and renewed optimism in US-Iran diplomatic engagement, provided a tailwind. The India VIX also declined, signaling reduced market volatility.

The Indian rupee strengthened against the dollar, supported by a softer dollar index and positive risk sentiment. Crucially, Foreign Institutional Investors (FIIs) turned net buyers for the second successive session, injecting ₹382 crore into the market.

Technically, the Nifty maintained its position above the 50-day EMA, ending three consecutive weeks in the green. Immediate resistance is observed at 24,400, with a more significant zone around 24,800-24,850.

Looking ahead, upcoming earnings reports from major banking institutions like HDFC Bank, ICICI Bank, and Yes Bank are expected to influence early trading next week. Indian equities are anticipated to consolidate at higher levels, with focus on US-Iran diplomatic talks and a crucial ceasefire deadline of April 22, 2026.