Markets log best weekly gain in 5 yrs on war 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, stabilized crude oil prices, and triggered a risk-on rally across global equities.

- Mayur Bhalerao

The Sensex recorded its highest weekly gain since the week ended 7 February 2021, when the markets had surged over 9% in a rally as fears of the covid-19 pandemic subsided.

On Friday, the Nifty 50 rose 1.16% to close at 24,050.60 points, 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.

"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."