Indian markets posted a strong rebound in the holiday-shortened three-day trading week, with benchmark indices rallying over 4.5% on the back of positive cues from both domestic and global fronts. The Nifty and Sensex closed near their weekly highs at 23,851.65 and 78,553.20, respectively, supported by optimism over tariff deferrals, product exemptions, easing retail inflation, and the absence of global shocks.

While the broader market rallied sharply, it was the smallcap segment that stole the spotlight, with several stocks posting weekly gains of up to 30%. The rally was broad-based, with notable participation from realty, financials, and other sectors, and reflected strong risk-on sentiment despite the prevailing macroeconomic uncertainties.