Indian Stock Market Sees Modest Weekly Losses Despite Positive Notes from US Fed Rate Cut

Indian Equity Benchmarks Experience Modest Weekly Losses

Indian equity benchmarks, including the Nifty and Sensex, saw modest weekly losses due to ongoing foreign institutional investor outflows and uncertainty surrounding US-India trade talks. However, sentiments improved towards the end of the week after the US Federal Reserve announced a 25-basis-point interest-rate cut.

Nifty and Sensex Performance

The Nifty jumped 0.57% on the final trading day, ending the week on a firmer note. For the week, the Nifty slipped 0.36% to 26,046, while the Sensex declined 0.17% to close at 85,267.

Analyst Insights

According to Vinod Nair, Head of Research at Geojit Investments, global risk appetite improved after the US Fed rate cut, boosting liquidity optimism and lifting domestic equities. He noted that Auto, Metals, Consumer Durables, and Realty led gains, while FMCG and PSU Banks underperformed.

Nair also mentioned that broader indices are showing buying interest, bouncing back post recent consolidation. He emphasized the importance of monitoring rupee levels, FII flows, and trade talks, along with global cues from the Bank of Japan, European Central Bank, and Bank of England.

US and European Markets

US stocks retreated sharply on Friday, with the S&P 500 and Nasdaq sliding more than 1% due to concerns over lofty artificial-intelligence valuations. In contrast, European stocks advanced, buoyed by the Federal Reserve's interest-rate cut and expectations of further policy easing in 2026.

Key Stocks and Sectors

The most active stocks in terms of turnover included Kaynes Technology, Hindustan Zinc, Hindustan Copper, Transformers & Rectifiers, InterGlobe Aviation, Vodafone Idea, and HDFC Bank. The most active stocks in volume terms were Vodafone Idea, GMR Airports, YES Bank, Transformers & Rectifiers, Ola Electric Mobility, Hindustan Copper, and Suzlon Energy.

Stocks that witnessed strong buying interest included Transformers & Rectifiers, Anant Raj, Hindustan Zinc, Hindustan Copper, GMR Airports, Choice International, and CCL Products. Over 95 stocks hit their 52-week highs, while 96 stocks slipped to their 52-week lows.

Market Sentiment

The market sentiments were bullish, with 2,552 stocks seeing advances, 1,642 witnessing declines, and 162 remaining unchanged. The rupee and foreign institutional investor (FII) flows will continue to be closely monitored, along with US-India trade talks and global economic trends.