On Friday, the NSE Nifty finished at 25,114.00, up 0.4% or 108.50 points. The BSE Sensex ended at 81,904.70, 0.4% or 355.97 points higher. In the past week, both indices rose 1.5%.
Analysts said Nifty closing above the 25,000-mark for the second day in a row augurs well for the markets.
“If Nifty holds above the 25,000 level, then the index is expected to move towards 25,400 levels in the next week,” said Gaurav Sharma, head of research at Globe Capital. “The levels around 25,000 will be key support levels.”
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In the past week, Nifty IT surged 4.3% led by Infosys, which gained over 5% after the company announced a share buyback. The stock rose nearly 1% on Friday after the company said late on Thursday it would purchase shares worth ₹18,000 crore from public shareholders.
The Volatility Index (VIX) – the market’s fear gauge – dropped 2.3% to 10.12 on Friday, as traders anticipate less risk in the near term. In the past week, the volatility gauge declined 6.1%.
The Nifty Midcap 150 and the Smallcap 250 indices declined around 0.3% each on Friday. Out of the 4,289 shares traded on the BSE, 1,974 advanced, while 2,170 declined. In the past week, the mid-cap and small-cap indices rose 1.8% and 1.4%, respectively.
“The market has been consolidating the last few weeks amid time-wise correction and formed a good support around 24,500 levels,” said Ruchit Jain, head of technical research at Motilal Oswal Financial Services. “If Nifty crosses the 25,150 mark, which it is anticipated to, then potential gains towards 25,500 levels are likely in the near term.”
Foreign portfolio investors (FPIs) sold shares worth a net ₹129.6 crore on Friday. Their domestic counterparts bought shares worth ₹1,556 crore. In August, global investors dumped shares worth ₹41,908.3 crore. In the last four sessions, overseas investors bought shares on two occasions after consistently remaining sellers since August 22.
The next key trigger for the market will be the announcement of the trade deal between the US and India, said analysts.
“The uncertainty on the tariff front has kept overseas investors on the sidelines, but the uncertainty is likely to subside as the India-US trade deal is expected to be finalised later this month, which could prompt foreign purchases,” said Sharma.
Elsewhere in Asia, South Korea and Indonesia gained around 1.5% each. Hong Kong and Taiwan advanced 1.2% and 1% respectively. Japan ended 0.9% higher; however, China declined 0.1%.
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