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* The equity benchmark index closed higher for the fifth consecutive session, driven by foreign institutional investors (FIIs) returning to Indian stocks due to attractive valuations and signs of economic recovery. Additionally, the falling USDINR, which dropped to a 2-year low below 86, along with positive domestic economic data—such as inflation hitting a 7-month low and rising tax collections in FY25—boosted market sentiment. FIIs were net buyers, investing over Rs 3,000 crore yesterday.
* The Sensex rose 557 points, or 0.7%, to close at 76,905, while the broader Nifty gained 159 points, or 0.7%, to settle at 23,350. Over the week, both the Nifty and Sensex saw a 4.3% increase, marking the largest one-week point gain since the week ending February 5, 2021.
* The FTSE rebalancing, with an inflow of $1.4 billion, also contributed to the market's upward movement.
* The broader market outperformed the benchmarks, with the midcap and smallcap indices rising by 1.4% and 2%, respectively. In sector performance, Nifty Media led with a 2.2% gain, followed by Nifty Oil & Gas, which rose by 2%. Nifty Bank, Nifty Financial Services, and Nifty Pharma all added over 1% each. Among individual Nifty stocks, SBI Life was the top gainer, rising by 3.4%, followed by NTPC, ONGC, Bajaj Finance, and BPCL. On the other hand, Trent, M&M, Wipro, Hindalco, and Infosys were the top losers.
* Many defense stocks also saw gains of up to 6% after the government approved faster defense procurement guidelines and granted preliminary approvals for military procurement proposals worth over Rs.54,000 crore.
* Meanwhile, global markets showed a decline, with both Asian and European markets slipping due to concerns over trade tariffs and the US imposing sanctions on a Chinese refinery for the first time, targeting the reduction of crude supply from Iran.

Technical Outlook:

* Nifty Index opened on a flattish note around the 23180 zone and strong buying from the start fuelled a steady uptrend throughout the day, pushing the index to a high of 23400. Bulls remained in control, with every small dip getting bought reinforcing their dominance. For the entire week, the bulls held their grip, driving Nifty up by over 950 points (over 4%), marking its highest weekly gain in two years.

* The index also gave a breakout from its three-week consolidation at 22800 and holding well on upper zone. It formed a bullish Marubozu candle on the weekly chart, indicating a continuation of the strong bullish momentum and forming higher high-higher lows from last five trading sessions. Now it has to hold above 23200 zones for an up move towards 23500 then 23700 zones while supports are shifting higher at 23200 then 23000 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.78% at 23382 levels. Positive setup seen in Manappuram Finance, HPCL, Bharti Airtel, SJVN, Poonawalla Fincorp, BSE, AB Capital, GAIL, NHPC, L&T Finance, BPCL, CDSL and LT while weakness in Jindal Stainless, National Aluminium, Voltas, Supreme Industries, CG Power, Berger Paints, Polycab India, Havells India, IndusInd Bank, Trent and Cummins India.

* On option front, Maximum Call OI is at 24000 then 24100 strike while Maximum Put OI is at 23000 then 23200 strike. Call writing is seen at 23600 then 23700 strike while Put writing is seen at 23300 then 23200 strike. Option data suggests a broader trading range in between 22900 to 23800 zones while an immediate range between 23200 to 23600 levels

* BHEL – Company won an order worth Rs7500cr from Gujarat State Electricity Corp. to build a 800MW thermal power plant.

* VA Tech Wabag – Company announced a pact with a consortium of global investors on municipal projects. The company has signed a non-binding term sheet on a platform to focus on the development of water projects; the platform will commit equity investment of up to $100 million over a three- to five-year period.

* Mazagon Dock – Company has announced a collaboration with the State Disaster Management Authority, Goa, aimed at bolstering the state's disaster preparedness and response capabilities.

* S&P Global On Manappuram Finance - S&P Global doesn't expect Bain Capital's acquisition of a stake in Manappuram Finance to impact the company's rating. This is because Manappuram Finance already had a "very strong" capital position before the stake acquisition. The acquisition is actually seen as a positive move for the company's corporate governance.

* Adani Energy – Company received Rs 2,800 crore transmission project in Gujarat for green hydrogen and ammonia manufacturing.

* L&T – Company has bagged a "large" orders from the Brigade Group to construct residential and commercial towers in Hyderabad and Chennai, India. While the company did not diclose the financial details of the order, it classifies "large" orders as those between Rs2500cr – Rs5000cr.

* Hero Motocorp – Company and the top shareholder of electric scooter maker Ather Energy, has entered the electric three-wheeler segment with a Rs 525 crore (around $60 million) investment in Euler Motors Pvt Ltd. Hero, promoted by the Munjal family-controlled diversified Hero Group, will get a 32.5% stake in the commercial EV maker in lieu of its investment.

* Coromandel International – Company has picked a 53 per cent stake in agro chemical firm NACL Industries Ltd for Rs820 crore. The company will further launch an open offer to buy an additional up to 26 per cent of equity.

* NTPC Green Energy – Company says that the second and last part capacity of 50 Mw, out of 105 Mw, Shajapur Solar Project (Unit-1) in Madhya Pradesh will start commercial operations.

Global Market Update

* European Market - European stocks fell for a second day, trimming weekly gains, as sentiment remains fragile over trade tariffs and the state of the economy. UK, France and Germany’s DAX declined 0.5% each.

* Asian Market - Asian stocks witnessed mixed bag. Both China and Hong Kong Index declined 1% and 2% respectively after the US sanctioned a Chinese refinery for the first time, in a marked step-up of measures to curb crude supply from Iran. Japan Index ended flat after data showed consumer prices came out higher than expected, while chipmakers climbed on Micron’s sales forecast.

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