Indian equities ended the week higher, with benchmark indices registering a third straight weekly gain, supported by upbeat domestic cues and favorable global developments.
The Sensex added 0.9% to close at 82,626, while the Nifty 50 advanced 0.8% to 25,327. Sentiment was lifted by the recent GST rate cuts, hopes of stronger consumption, renewed India–US trade talks, and the US Federal Reserve’s first rate cut of 2025. Robust domestic inflows also cushioned markets against continued foreign selling, helping them scale a two-month high.
Small-Caps Outperform Large-Caps
While blue-chip stocks traded steady, the real momentum was in the small-cap segment, where investors chased high-growth opportunities.
More than 45 stocks in the BSE Small-cap index rallied in double digits last week.
Banco Products (India) topped the chart with a 35% surge to ₹835.6.
Strong gains were also seen in IRM Energy, Redington, Sindhu Trade Links, Hi-Tech Pipes, Anant Raj, and John Cockerill India, all of which advanced over 20%.
Other notable winners included V2 Retail, Bajaj Consumer Care, Poonawalla Fincorp, Inox Green Energy, Hariom Pipe Industries, Netweb Technologies, Prism Johnson, and KPR Mill, which rose between 12–15%.
Global Headwinds Loom
Despite the rally, global risks remain on the horizon. US President Donald Trump’s executive order to hike H-1B visa fees to \$100,000 annually—up nearly 100 times from the current level—poses a major challenge for India’s \$283-billion IT services industry. Analysts warn the move could erode up to 10% of profits for top IT firms and add to the uncertainty around global trade.
Outlook: Positive Yet Cautious
Market experts recommend a measured approach, advising investors to focus on domestic-driven sectors such as autos, capital goods, and metals, while keeping a defensive allocation to FMCG and pharma. A buy-on-dips strategy is preferred until global uncertainties, particularly on trade and US policy, offer clearer signals.