India's benchmark equity indexes posted a weekly rise as investors cheered a truce with Pakistan, trade talks with the United States and expectations of domestic interest rate cuts, reports Reuters.
The Nifty 50 rose 4.21 per cent to 25,019.80 for the week and the BSE Sensex gained 3.62 per cent to 82,330.59. On the day, the indexes fell about 0.2 per cent each, dragged by a pullback in IT stocks.
"The announcement of a ceasefire between India and Pakistan eased worries of escalation of military tensions and triggered risk-on sentiment, while the U.S-China trade truce, progress in India-US trade negotiations and cooling domestic inflation sustained the weekly gains," said Aishvarya Dadheech, chief investment officer of Fident Asset Management.
With foreign inflows likely to sustain, the outlook for Indian markets remains positive, said Dadheech.
US President Donald Trump said on Thursday that India has offered a trade deal with zero tariffs, driving markets higher. India's trade secretary said that trade talks with the US are progressing well. Trade minister Piyush Goyal will lead an Indian delegation to advance negotiations.
India's more domestically-focussed small-caps and mid-caps advanced 9.2 per cent and 7.2 per cent this week, led by defence stocks and post-results rallies in key constituents.
"The sharp resurgence in broader markets is a sign of things changing for good," Fident Asset's Dadheech said.
All 13 major sectors advanced from a week earlier.
The IT index rose 5.8 per cent, helped by easing recession worries in the world's largest economy. Metal shares jumped 9.3 per cent to log their best week in four years, aided by weakness in the dollar.
