Mumbai, April 18 (NationPress) This week, the Indian benchmark indices concluded on a remarkably positive note, buoyed by the hopeful developments in the US–Iran peace talks.

Moreover, the strengthening of the rupee alongside a decline in crude oil prices contributed to a favorable trading atmosphere, prompting widespread buying across various sectors, as per analysts.

By the end of trading on Friday, the Sensex had jumped by 504.86 points, equivalent to 0.65 percent, closing at 78,493.54, while the Nifty experienced an increase of 156.80 points, also 0.65 percent, to settle at 24,353.55.

Sector-wise, there was notable buying interest across the majority of sectors, with the market maintaining a positive tone, according to a report from Bajaj Broking Research.

The most significant gains were noted in the Nifty FMCG, Metal, and Oil and Gas sectors, which rose between 1 percent and 3 percent, although Nifty IT lagged behind.

The broader market outperformed the benchmark indices, with the Nifty Midcap climbing approximately 1.27 percent and the small-cap index advancing around 1.48 percent, as stated in the report.

The Indian equity markets displayed a consistent and orderly recovery throughout the week, driven by an upturn in global sentiment and a significant drop in crude oil prices.

While the overall sentiment remained somewhat cautious, the indices concluded with substantial gains, supported by ongoing buying interest and a gradual increase in risk appetite.

“The price movements were noticeably more stable compared to previous weeks, with dips attracting buying interest—indicating that sentiment is beginning to strengthen. Nevertheless, despite these recoveries, the markets have not yet achieved a decisive breakout at higher levels, suggesting that the trend is still in transition rather than firmly established,” remarked Ponmudi R, CEO of Enrich Money.

In summary, the sentiment has shifted towards a cautiously optimistic outlook.

Declining crude prices, improving global signals, and more stable capital flows are aiding the recovery, according to analysts.

While downside risks seem fairly contained in the short term, there is a gradual build-up of upside momentum—indicating a shift from recovery towards a more stable structure, although still reliant on external factors, they noted.

Importantly, foreign institutional investors have begun to display early signs of stabilization following a lengthy period of outflows.

FIIs turned net buyers during the last three trading sessions of the week, bolstering the recovery and enhancing overall sentiment.

On a cumulative scale, flows remained slightly negative for the week, totaling around Rs 250 crore. Conversely, domestic institutional investors, who had been consistently supportive, turned net sellers in the final sessions, reflecting some profit-taking at elevated levels.

Weekly DII outflows were approximately Rs 6,300 crore.

Despite this short-term shift, their overarching role as a stabilizing force remains intact, continuing to provide structural support to the market.