Indian equities end week higher despite Friday dip on profit-booking

Indian equity benchmarks ended their three-week winning streak on a steady note, slipping marginally on Friday, 19 September, as investors booked profits in financial and IT counters, even as overall market sentiment stayed positive after a strong rally earlier in the week.

The Nifty 50 eased 0.38 per cent to close at 25,327.05, while the BSE Sensex slipped 0.47 per cent to 82,626.23. Despite the final-session pullback, both indices logged a third consecutive week of gains, rising around 0.85 per cent and 0.89 per cent respectively.

The uptrend was driven by optimism around resumed India–US trade talks, local tax rationalisation measures and the US Federal Reserve’s widely anticipated 25 basis-point rate cut.

Midcap and small-cap indices finished slightly higher, while PSU banks extended their rally, with the Nifty PSU Bank Index climbing over 1 per cent.

Adani Group stocks also provided a boost after the market regulator SEBI dismissed allegations raised by US short-seller Hindenburg Research. Adani Enterprises surged 6 per cent, while Adani Green Energy, Adani Energy Solutions, Adani Power and Adani Wilmar’s agri business arm recorded gains of up to 12 per cent.

Technically, Nifty formed a bearish candle on the daily chart but with a long lower shadow, signalling buying interest at lower levels. On the weekly frame, it continued to post higher lows for a third straight week, advancing nearly 4 per cent from its August trough.

Analysts noted that with GST rationalisation taking effect next week and festive demand expected to pick up, investors are shifting focus towards consumption-driven sectors.

Global cues remained supportive, with US indices including the Dow Jones, S&P 500, Nasdaq and Russell 2000 touching fresh record highs after the Fed resumed its rate-cutting cycle and projected real GDP growth of 1.6 per cent in 2025, an unemployment rate of 4.5 per cent and core PCE inflation at 3.1 per cent.

Lower US rates typically make emerging markets like India more attractive to foreign investors by reducing Treasury yields and softening the dollar.

Going forward, market participants will monitor key US macro data, such as GDP growth, jobless claims and core inflation, for further clarity on the Fed’s policy path. Domestically, the upcoming manufacturing PMI is expected to provide an early gauge of industrial momentum and demand revival.