Samvat 2082 kick-off: Consumer demand soars, but profit-taking and global cues signal caution

Mumbai: The holiday-shortened trading week opened on a positive note, buoyed by festive optimism and strong consumer sentiment as markets welcomed Samvat 2082. However, the initial momentum faded as geopolitical tensions and profit-taking weighed on investor confidence.

Record festive sales reflected India’s robust consumer demand this season, supported by resilient household spending and GST-driven affordability.

Public sector bank stocks led the rally, lifted by speculation of potential consolidation and stronger-than-expected quarterly results.

Vinod Nair, Head of Research at Geojit Financial Services, noted that the precious metals market witnessed extreme volatility, suffering its sharpest single-day fall in over a decade due to profit booking and a stronger US dollar.

Crude oil prices surged after the US and EU imposed new sanctions on Russian oil majors, raising fears of tighter global supply and renewed inflationary pressure.

Indian stock markets ended lower on Friday, snapping a six-day winning streak as weak global cues dented investor sentiment.

The Nifty index finished the week almost flat, up 85 points after a strong start. On a weekly basis, it corrected nearly 311 points from its peak, signalling consolidation after recent sharp gains. Nifty briefly slipped below 25,800 before closing at 25,795.15, as traders booked profits at higher levels.

"Currently, Nifty continues to trade above its 20-day, 50-day, and 200-day EMAs, highlighting a strong underlying bullish structure and sustained trend strength. On the weekly timeframe, the RSI stands at 61.60 and is trending sideways, indicating a neutral-to-positive bias with potential for renewed momentum once consolidation ends,” said Hardik Matalia, Derivative Analyst–Research, Choice Equity Broking Pvt Ltd.

Bank Nifty also ended the week flat at 57,699 after touching a new lifetime high. The index crossed its previous peak of 57,628 but later corrected nearly 870 points, reflecting profit-taking at higher levels.

Analysts advised investors to closely monitor developments in the ongoing India–US trade negotiations, as both nations move closer to finalising a bilateral deal.

IANS