Mumbai, Nov 15 (NationPress) The Indian equity markets concluded the week on a positive trajectory, with key indices advancing due to the resolution of the US government shutdown. This was further bolstered by robust domestic fundamentals, exceeding expectations in Q2 earnings, declining inflation, and the NDA's historic triumph in Bihar, analysts report.

The record-low inflation for October has heightened expectations for a potential RBI rate cut, thereby fueling momentum in domestic equities.

Vinod Nair, Head of Research at Geojit Investments Limited, noted that the sectoral momentum was widespread, particularly driven by advances in IT, Pharma, healthcare, and Auto stocks.

“As the week drew to a close, the NDA’s election success in Bihar significantly enhanced investor sentiment; however, diminishing hopes of a U.S. Fed rate cut led to profit-taking in IT stocks, tempering their prior gains,” he added.

The indices experienced pressure for a majority of the Friday session, fluctuating between losses and brief recoveries, until a strong rebound in the late afternoon propelled them into positive territory.

Market volatility increased as investors monitored the Bihar election results, the day's pivotal trigger.

Investor sentiment was also dampened by unfavorable global cues, following a sharp decline on Wall Street led by falling stocks in Nvidia and other technology giants. This decline resulted from a reduced expectation for near-term rate cuts amidst ongoing inflation concerns, as per a report from Bajaj Broking Research.

At the close, the Sensex rose by 84 points or 0.1 percent to 84,563, while the Nifty increased by 31 points to 25,910. Sectoral trends were mixed; PSU banks led gains with a 1.17 percent increase, followed by solid movements in pharma and FMCG stocks.

Although energy and infrastructure sectors saw slight upticks, IT stocks fell by 1.03 percent, with declines also noted in auto, metal, and realty sectors.

Within the broader market, the Nifty Small-cap 100 index climbed by 0.38 percent, while the Midcap 100 index edged up 0.08 percent.

Analysts suggest that the Nifty has formed a robust bull candle on the weekly chart, indicating a pullback after two weeks of corrective declines, aligning with expectations from the key support area of 25,400-25,300.

Looking ahead, the market's trajectory will depend on crucial macroeconomic indicators such as India's PMI data, US jobless claims, FOMC minutes, and developments in US–India trade negotiations.