Pulse of the Street: Markets log best weekly gain in 5 years on global relief

Indian benchmark indices surged about 6% this week—their strongest performance in over five years—driven by sharply improving global cues after a ceasefire between the US and Iran eased geopolitical tensions, stabilised crude oil prices, and triggered a risk-on rally across global equities.The Sensex recorded its sharpest weekly gain since the week ended 7 February 2021, when the markets had surged over 9% in a rally as covid-19 fears subsided. On Friday, the Nifty 50 rose 1.16% to close at 24,050.60, while the Sensex gained 1.2% to end at 77,550.25.At the same time, volatility cooled significantly.

The India VIX, which measures expected market volatility, dropped from 25.5 to 18.85 during the week—falling below the key 20 mark.Also read: Demat account additions slow in FY26 as market volatility dents retail investor momentum“Nifty VIX easing below 20 is a sign that the sway of global uncertainties over Indian markets is reducing,” said Anand James, chief market strategist at Geojit Investments. “Moreover, the earnings season has also provided stock-specific triggers, replacing broad-based panic or relief-driven moves.”Technical indicators suggest the rally may have further room to run.

According to Mehul Kothari, DVP, technical research at Anand Rathi Share & Stock Brokers, the 5.9% surge in the Nifty 50 appears to be more than just a short-term rebound. The index has broken above the crucial 23,100–23,400 resistance zone and is now holding near the 24,000 level.Kothari expects the index to test the 24,500–24,800 range in the near term, although intermittent corrections towards 23,600–23,200 may occur.