Sensex, Nifty finish week largely unchanged on Q3 earnings hopes

Indian equity benchmarks ended the week with marginal movement as optimism around third-quarter earnings and revived trade talks between India and the U.S. offset caution stemming from escalating geopolitical risks.

Sectoral profit-taking in pharmaceuticals, consumer durables, and automotive stocks dragged on indices, while public sector banks and metals companies saw relative strength.

During the week, the Nifty edged up 0.04%, closing at 25,694 after a 0.11% gain on Friday. The Sensex rose 187 points (0.23%) to settle at 83,570 on the final trading day, though it registered a weekly dip of 0.01%.

Market experts noted that trader attention remained fixed on quarterly results, where IT and banking sector performances reinforced confidence in economic expansion. Persistent global tensions, however, prompted foreign investors to adopt a cautious stance toward emerging markets, driving government bond yields upward.

Within the earnings landscape, IT stocks drew significant interest after a leading industry firm adjusted its full-year revenue forecast upward, while broader sector results exceeded growth projections.

Early banking-sector reports highlighted sustained improvements in loan portfolios and stronger-than-anticipated profitability, signaling financial resilience.

These developments established a positive foundation for Q3 FY26 corporate results and reinforced market expectations for sustained domestic earnings growth, according to analysts.

The Bank Nifty index concluded the week with notable momentum, forming a bullish technical pattern as its Relative Strength Index (RSI) crossed into positive territory near the 61 level.

Midcap and smallcap stocks outpaced benchmark indices, with the Nifty Midcap 100 climbing 0.20% weekly while the Smallcap 100 added 0.46%.

Globally, markets await clarity from the U.S. Supreme Court regarding pending rulings on trade tariffs implemented during the prior administration, though no specific decision timeline exists.

Investor focus also remains on crucial economic data including U.S. personal consumption expenditure inflation figures and GDP growth rates, which could influence Federal Reserve interest rate decisions.

(With inputs from IANS)