The BSE Small-cap index experienced a notable 0.7% gain, reflecting a positive trend amid fluctuating market conditions. Broader indices also performed well, with the BSE Midcap index rising by 1%. However, the benchmark BSE Sensex fell by 273.17 points or 0.32%, closing at 83,938.71, while the Nifty50 saw a decline of 155.75 points or 0.60%, finishing at 25,722.10. The week was marked by persistent selling from Foreign Institutional Investors (FIIs), who offloaded Rs 2,102 crore worth of equities, contrasting sharply with Domestic Institutional Investors (DIIs) that purchased Rs 18,804.26 crore in equities, maintaining their buying streak for the 28th week.

Sector performance varied significantly during the week. The Nifty PSU Bank index surged 4.7%, driven by potential increases in foreign investment limits, while the Nifty Oil & Gas and Nifty Metal indices also made solid gains of 3% and 2.5%, respectively. Conversely, sectors such as Nifty Healthcare, Auto, and Private Banks faced losses of 1% each. Vinod Nair, Head of Research at Geojit Investment, noted that profit booking followed a sustained rally in the markets, and the mixed results from corporate earnings contributed to the overall volatility. Expectations around trade talks with the U.S. and the impact of SEBI's proposed regulations on capital market stocks also influenced market sentiment.

Looking ahead, analysts predict that the markets may remain range-bound with a positive bias as investors keep an eye on global developments and foreign fund inflows. Key indicators to watch include upcoming monthly auto sales figures and quarterly results from major companies like SBI, Bharti Airtel, Titan, and Tata Chemicals, which are expected to shed light on festive demand trends. Siddhartha Khemka from Motilal Oswal Financial Services emphasized that resilient domestic fundamentals continue to provide support to the markets despite external uncertainties. As the corporate earnings season progresses, any dips in the market could attract buying interest, particularly in core sectors, as expectations for a stronger second half of the year take shape.