Nifty posts second straight gain but ends week lower; crude, bond yields cap rally

The Nifty and Sensex closed marginally higher for a second straight day on Friday, climbing 20.15 points and 3.11 points respectively, despite higher crude oil prices and rising global bond yields. The Nifty closed the week 0.47 per cent lower, marking its second consecutive weekly decline, while the Sensex shed 460 points over the same period.

Early gains in the Nifty were short-lived, as it spent most of the day within a 60-point range, showing a lack of clear direction. Brent crude prices rose above $93 a barrel, with WTI trading around $85 per barrel, as the US-Iran conflict escalated. The UAE suspended financial and economic ties with Tehran in response to Iranian missile strikes.

Power Grid and HDFC Life were the top gainers among the Nifty 50, while Trent, Maruti Suzuki, and IndiGo were the major losers. Metals and CPSE indices ended in the green, while Auto, FMCG, IT, and Media sectors recorded the steepest declines. The week saw the FMCG and IT indices drop over 2 per cent, whereas the Capital Market index gained 2.55 per cent.

The market fared better on the broader front, with the Nifty Midcap 100 and Nifty Smallcap 100 both registering gains. The Nifty Smallcap 100 broke out of a consolidation range since August 6, closing above the 19,937 upper boundary. Market breadth remained weak, with 272 Nifty 500 stocks ending lower, and an advance-decline ratio of 1.08.

The Indian rupee remained stable at 95.71 against the US dollar. Gold saw a 4 per cent rise this week, reaching ₹1,61,600, while COMEX Gold approached $4,585. Jateen Trivedi of LKP Securities noted the rally was supported by lower bond yields following the US Treasury's plan to repurchase around $4 billion in bonds quarterly.