Mumbai: Indian benchmark indices closed higher on Friday but remained under pressure on a weekly basis as investors stayed cautious amid uncertainty over the global interest-rate trajectory. The Nifty 50 and Sensex both registered notable weekly declines, extending their recent losing streak as traders closely tracked signals from major central banks.
Market sentiment was restrained by concerns that global interest rates could remain elevated for longer than previously expected. Persistent inflationary pressures and uncertainty surrounding the pace of monetary easing in major economies have prompted investors to adopt a more cautious approach toward equities.
Domestic factors also contributed to market volatility. Investors continued to assess developments in the derivatives market and the impact of recent changes in the closing auction mechanism, while fluctuations in heavyweight stocks added to intraday swings.
Sectoral performance remained mixed, with information technology stocks finding support, while gains in select pharmaceutical, metal and other heavyweight counters helped the benchmarks recover during Friday's session. However, the broader market remained sensitive to global cues and foreign institutional activity.
Going ahead, investors are likely to closely watch central-bank commentary, U.S. economic data, global bond yields, crude oil prices and foreign fund flows for clues about the next phase of market direction. Analysts expect volatility to remain elevated until greater clarity emerges on the global interest-rate outlook.