Hello Readers, 

Here’s the week in a recap…

Indian markets notched a fourth straight weekly gain, but can the rally sustain? With Q1FY27 earnings around the corner, easing crude prices, FII inflows, and improving global cues, investors are closely watching what could drive the next leg of the market.

Weekly Overview 

Indian markets extended their weekly winning streak for the fourth consecutive week, after seven months. From easing geopolitical tension to declining crude prices to an Information Technology sector rally, all added up to push the benchmark indices upward and to post one of their strongest weekly gains in the past month. 

The equity benchmark indices Nifty 50 and BSE Sensex gained 0.89% and 0.86%, respectively, during the week, with volatility index Nifty VIX hovering around 12 through the week and finally closing at 11.8. 

Nifty 50 closed at the 24,270 level, while Sensex closed a little over the 77,700 level, indicating a positive rebound in market sentiments. 

Broader markets also flared during the week and participated in the market rally, often surpassing the benchmark indices’ gains. For instance, Nifty Smallcap 250 gained around 1.65% during the week; however, the Nifty Midcap 150 remained a little subdued with a weekly gain of 0.59% only. 

Weekly Performance of Key Indices

Key Market Triggers 

Crude prices traded around the US$72 per barrel mark for the week ended on 3 July 2026, remaining below the recent high levels touched during the escalating West Asia crisis. 

Another important trigger for the global as well as domestic market was weaker inflation in the US, which mitigated the fear of rising interest rates by the Federal Reserve to some extent. This made the market feel a sigh of relief, which reciprocated through positive market sentiments. 

This led to another major trigger and a turnaround in the market, to be specific. Indian IT sector finally showed some signs of revival this week. Nifty IT ended in the green for the first time in ages. As the Indian IT sector is highly dependent on the US market, weaker inflation and reduced risk of rising Fed rates boosted the IT sector the most. 

Investors are also weighing the upcoming Q1FY27 results, and for the upcoming few weeks, this will be one of the crucial factors determining the market movements.

Coming to the weekly FIIs fund flow, for the third time in a row, FIIs remained net buyers of Indian equities. The net inflow in the domestic equities was around US$ 463 million during the week. FIIs returning to the Indian equity market is another positive sign of market recovery, improving global risk sentiments, and easing crude prices. 

Rupee declined close to 1% during this week; however, on Friday it closed at 95.21 per dollar, a little higher than last week. While the rupee has been quite volatile during the previous few months owing to the geopolitical turmoil, now that things are easing out, and with RBI’s forex policies, the rupee is expected to stabilize soon. 

Weekly Sectoral Performance 

During the week, the realty sector witnessed a significant rebound with the Nifty Realty index gaining over 7.8% week-on-week. 

Pharma and healthcare businesses also witnessed a significant rally with Nifty Midsmall healthcare gaining around 4.9%, Nifty Pharma gaining 3.11%, and Nifty Healthcare index gaining around 2.99% during the week. 

On the other hand, Nifty PSU Bank index fell sharply by 2.65% during the week, followed by Nifty Mid-Small IT and Telecom index losing 1.85% during the week. 

Wrapping Up 

With positive global and domestic cues, Indian markets continued their upward trajectory for the fourth week in a row. These improving sentiments were felt across most sectors barring a few. Going forward, Q1 earnings results, global and domestic economic data, crude prices, and institutional fund movement are expected to move the market.