India’s main stock indexes snapped a six-week losing streak on Friday, posting their biggest weekly gain in over five years, as investors took comfort from a fragile U.S.-Iran ceasefire.
The Nifty 50 climbed 1.16% to 24,050.6 and the Sensex added 1.2% to 77,550.25, rising nearly 6%, for the week.
U.S. and Iran had reached a two-week ceasefire on Wednesday, pushing Brent crude prices down 12% and providing a respite to equity markets globally.
However, that ceasefire showed signs of strain on Friday as Washington accused Tehran of breaching promises and Israel struck Lebanon.
“A more durable improvement in global risk sentiment would require a cessation of hostilities and the full reopening of the Strait of Hormuz,” said Rita Tahilramani, investment director of Asian equities at Aberdeen Investments.
India imports most of its crude and gas, and soaring energy prices since the war have raised concerns over growth, inflation and the impact on corporate earnings.
The small-cap and mid-cap indexes rose 7.6% and 7.8%, respectively, this week, with all 16 major sectors logging gains.
High-weight financials rose 9%, while auto stocks index was the top gainer among major sectors with a 10.6% surge for the week.
Sectors including tourism, paints, oil marketing companies also rebounded. Larsen & Toubro jumped 9.6% to log its best week in over five years.
Index-heavyweights HDFC Bank and ICICI Bank gained 7.9% and 8.7%, while oil-to-telecom conglomerate Reliance Industries was flat.
Tata Consultancy Services fell 2.5% after a rare annual revenue drop and concerns over a clouded FY27 outlook. It led IT stocks down 1.9% on the day.
Sun Pharma dropped 3.6%, its worst daily drop in about three months, after a report said it plans a $12 billion binding bid for U.S.-based Organon.
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