Indian stock markets recorded their second consecutive week of gains, fueled by investor optimism following a tentative peace agreement between the US and Iran and a dip in Brent crude oil prices. The Nifty index rose about 1.65% over the week before slipping slightly on the final trading day, closing near 24,013 points. Meanwhile, the Sensex added roughly 1.69% during the week but ended with a decline of 0.78% for the session at 76,802 points.

The gains were tempered on the last day as IT stocks faced a sharp sell-off. The Nifty IT index dropped over 6%, driven largely by a downgraded revenue outlook from Accenture, which weighed heavily on technology shares despite recent benchmark rallies. In contrast, sectors such as consumer durables, real estate, pharmaceuticals, and defence outperformed, with the defence sector surging more than 6% amid positive fundamentals.

Brent crude oil prices fell below $80 per barrel during the week, spurred by hopes of a US-Iran agreement that included reopening the Strait of Hormuz and ending the naval blockade. However, these price declines paused near week’s end following abrupt cancellations of peace talks and profit-taking by traders. The rupee also strengthened significantly, gaining about 79 paise to trade around 94.35 per dollar.

Monsoon rainfall remains a critical concern, with cumulative precipitation tracking well below normal levels due to ongoing El Niño conditions. Market watchers flagged that delays in monsoon progression may impact kharif crop sowing, food inflation, and rural consumption, potentially influencing market sentiment going forward.

The Reserve Bank of India maintained a cautious monetary stance in line with global trends, while the US Federal Reserve signaled a “higher-for-longer” interest rate policy, contributing to a cautious outlook among investors. Analysts noted that further clarity on policy direction may require additional reviews, even as trade agreements with the US and UK advance.

Broader market indices outperformed the benchmarks, with the Nifty Midcap100 and Smallcap100 indexes posting weekly gains of approximately 2.6% and 3.2%, respectively. Upcoming economic data releases—including India’s PMI, credit growth figures, and US inflation and GDP reports—are expected to guide market direction in the near term.