Sensex, Nifty Post Fourth Straight Weekly Gain as Falling Crude Oil Prices Lift Market Sentiment

July 4, 2026

Mumbai: Indian benchmark equity indices extended their winning streak for a fourth consecutive week, supported by a sustained decline in crude oil prices, improving global market sentiment and expectations of a more accommodative interest-rate environment.

The Nifty 50 gained 0.89 per cent during the week and closed 0.39 per cent higher at 24,270 on Friday. The BSE Sensex ended the session 261 points, or 0.34 per cent, higher at 77,763, taking its weekly gain to 0.86 per cent.

Crude Oil Correction Boosts Investor Confidence

Market sentiment improved as easing geopolitical tensions around the Strait of Hormuz led to a correction in crude oil prices. Softer US labour market data and dovish remarks from the US Federal Reserve Chair further strengthened expectations that global interest rates could become more supportive for equity markets in the coming months.

Analysts said the decline in oil prices also eased concerns over inflation and India’s import bill, providing additional support to domestic equities.

Markets Recover After Cautious Start

Indian markets began the week on a cautious note amid profit booking, uncertainty over the durability of the US-Iran ceasefire, mixed monsoon progress and investor caution ahead of the first-quarter earnings season.

However, buying interest returned in the latter half of the week as global risk appetite improved and investors turned optimistic about economic and corporate growth prospects.

IT, Realty and Pharma Lead Weekly Rally

Among sectoral indices, real estate, pharmaceutical and healthcare stocks emerged as the top performers during the week. The IT sector also witnessed a sharp rebound, supported by short covering and renewed optimism over Indian technology companies benefiting from increasing enterprise adoption of artificial intelligence (AI).

On the other hand, PSU banking and energy stocks underperformed compared with the broader market.

Midcaps and Smallcaps Continue Outperformance

The broader market also remained positive. The Nifty Midcap100 index gained 0.64 per cent, while the Nifty Smallcap100 outperformed with a 2.05 per cent weekly rise, reflecting sustained buying interest beyond large-cap stocks.

Key Levels and Market Outlook

According to market analysts, the immediate resistance for the Nifty is seen around 24,400, while support is expected near 24,200, followed by the 24,000 level.

For the Bank Nifty, support is placed in the 57,500-57,600 zone, whereas resistance is expected around 58,200-58,300.

Investors will now closely monitor the release of the US Federal Open Market Committee (FOMC) minutes, the upcoming corporate earnings season, monsoon progress, credit growth data and trade negotiations involving India with Japan, the United Kingdom and the United States.

Analysts believe that while risks such as slower earnings growth, inflation concerns linked to the monsoon and cautious foreign institutional investor (FII) activity remain, much of the uncertainty has already been factored into stock prices, leaving room for further gains if macroeconomic conditions remain favourable.