Sensex and Nifty Rebound Strongly: Market Outlook for Next Week

ndian stock markets posted strong gains last week, with the Sensex rising 1,062 points (1.45%) to close at 74,332.58 and the Nifty gaining 315 points (1.42%) to end at 22,552.50. Despite mixed global signals, positive domestic factors such as a softer dollar, easing crude oil prices, and the Reserve Bank of India’s liquidity support boosted sentiment. Metal, energy, and pharma stocks led the recovery, contributing to the overall rally.

Global markets saw volatility due to uncertainty over U.S. tariffs and inflation concerns. However, the Federal Reserve’s cautious stance on rate hikes and strong domestic corporate earnings supported the upward momentum. The India VIX, a measure of market volatility, dropped, reflecting improved investor confidence.

Next week, key events like U.S. inflation data, updates on global tariffs, and domestic economic indicators such as the Index of Industrial Production (IIP) and Consumer Price Index (CPI) will guide market movements. Additionally, foreign institutional investor (FII) activity and geopolitical developments could influence market trends. Analysts suggest that sustained momentum in key sectors and stable global cues could help the market maintain its upward trajectory.