By Our Business Correspondent
Indian equity benchmarks recovered on Friday after the sharp sell-off in the previous session, with investors returning to select domestic-facing sectors as easing crude oil prices and a firmer rupee provided some relief to market sentiment.
The rebound, however, remained measured as persistent concerns over elevated US Treasury yields and geopolitical risks continued to keep investors cautious. Buying interest was particularly visible in consumer durables and automobile stocks, while information technology and healthcare shares remained under pressure.
The Nifty 50 regained the 23,100 level, although broader-market performance was comparatively subdued, indicating that the recovery was concentrated largely in select large-cap stocks.
The S&P BSE Sensex gained 315.20 points, or 0.43%, to close at 73,895.74, while the Nifty 50 advanced 77.40 points, or 0.34%, to 23,140.50. The Nifty had declined 1.64% in the previous trading session.
The recovery came after the sharp fall a day earlier, with investors using the decline to accumulate select stocks. The market also drew support from a moderation in crude oil prices, an important factor for an oil-importing economy such as India, as well as a marginal improvement in the rupee against the US dollar.
Among the major Nifty constituents, Axis Bank rose 3.03%, Mahindra & Mahindra gained 1.75%, and HDFC Bank advanced 0.92%, providing significant support to the benchmark index.
The broader market, however, did not participate fully in the rebound. The BSE 150 MidCap Index declined 0.25%, while the BSE 250 SmallCap Index slipped 0.01%. This divergence suggested that investors continued to remain selective even as large-cap benchmarks recovered.
Market breadth on the BSE was positive, with 2,257 shares advancing against 2,079 declining shares, while 254 shares remained unchanged.
Crude prices provide some relief
Oil prices emerged as an important variable for Indian equities during the session. Brent crude for November 2026 settlement declined $1.10, or 1.03%, to $105.50 a barrel.
The decline followed a sharp increase in crude prices during the previous session. Oil prices had gained about 3% on Thursday amid concerns over potential supply disruptions following a Houthi missile attack on Saudi Arabia.
The retreat in crude prices offered some relief to investors because sustained high energy costs can increase India’s import bill, put pressure on the current account and potentially complicate the inflation outlook.
Despite Friday’s decline, crude remained at an elevated level, keeping oil prices firmly on the market’s watch list.
Bond yields remain a concern
Global bond markets continued to signal caution. The US 10-year Treasury yield rose 0.23% to 5.175% during the session.
US Treasury yields had climbed to multi-year highs amid concerns that elevated energy prices could keep inflationary pressures persistent. The 30-year US Treasury yield had touched 5.501%, its highest level since June 2004, while the 10-year yield had risen to 5.223%, its highest level since June 2007.
Higher US yields can influence global capital flows and increase the attractiveness of dollar-denominated assets relative to emerging-market securities. For Indian equities, elevated global yields therefore remain an important risk factor.
The domestic bond market, in contrast, saw a marginal easing in yields. The yield on India’s 10-year benchmark government security declined to 7.100% from 7.111% in the previous session.
Rupee gains marginally
The Indian rupee also provided some support to market sentiment. The partially convertible rupee was quoted at 95.8050 against the US dollar, compared with its previous close of 95.9925.
The stronger rupee coincided with the decline in crude prices and a fall in the US Dollar Index. The DXY declined 0.24% to 101.04.
Currency movements remain particularly important for Indian companies because they influence import costs, overseas borrowing and the earnings of sectors with significant foreign-currency exposure.
Gold continues to attract attention
Gold remained firm amid continuing global uncertainty. MCX Gold futures for the October 5, 2026 settlement rose 0.77% to Rs 1,51,878.
The movement in precious metals reflected the continuing investor focus on global economic and geopolitical risks even as equity markets staged a recovery.
Global market cues mixed
Global market signals remained mixed.
US Dow Jones futures were up 186 points on Friday, indicating a higher opening for US equities. European shares also recovered, snapping a near one-week losing streak, as the recent decline in crude oil prices eased some pressure on energy-intensive industries and rate-sensitive growth stocks.
Asian markets ended mixed after Wall Street also closed on a mixed note in the previous session. A sharp rise in US Treasury yields continued to weigh on sentiment. Markets in China and South Korea were closed for a holiday.
US equities had ended mixed on Thursday. The Dow Jones Industrial Average declined 161.61 points, or 0.31%, to 51,349.98, marking its third consecutive decline. The S&P 500 eased 0.02% to 7,704.13, while the Nasdaq Composite edged up 0.01% to 26,939.37.
Trump-Xi meeting in focus
Investors also monitored developments surrounding the meeting between US President Donald Trump and Chinese President Xi Jinping in Washington.
The two leaders discussed trade and artificial intelligence, while the US and China agreed to extend their trade truce by two months. A White House state dinner was also held for Xi on Thursday.
Developments in US-China trade relations remain relevant for global markets because any change in tariff or trade policies could affect international supply chains, technology companies and global economic growth expectations.
Stocks in focus
Among individual stocks, Meta Platforms gained about 4.5% after unveiling new artificial-intelligence-powered devices and expanding features associated with its Muse AI agent.
Oracle declined about 4.5% following reports that it had issued a force majeure notice related to its New Mexico data-centre project.
In the domestic market, Pearl Global Industries rose 3.56% after outlining its long-term growth strategy and FY30 targets at its Investor Day.
The company has set a revenue target of Rs 9,000-10,000 crore by FY30, compared with Rs 5,025 crore in FY26. Its adjusted EBITDA target stands at Rs 1,080-1,400 crore, against Rs 468 crore in FY26. The company expects its adjusted EBITDA margin to improve to 12%-14% from 9.3% and plans total capital expenditure of Rs 675-725 crore through FY30.
PVP Ventures hit the 5% lower circuit after announcing the resignation of Executive Director and CEO Dr Ellen Jane Feehan and Executive Director and COO Dr Neeraja Nagarajan.
ESDS Software Solution also hit the 5% lower circuit after reporting mixed Q1 FY27 performance. Consolidated adjusted net profit increased 13.97% year-on-year but declined 56.57% sequentially to Rs 29.28 crore. Net sales rose 7.28% year-on-year but fell 20.20% quarter-on-quarter to Rs 133.66 crore.
Vascon Engineers gained 4.48% after receiving a work order worth Rs 660.79 crore from Qualcomm India.
Transport Corporation of India surged 6.31% after announcing that its board would meet on September 29 to consider a share buyback. Promoter and promoter-group holdings stood at 68.86% as of June 30, 2026.
Blue Cloud Softech Solutions jumped 11.62% after its US subsidiary, Global Impx (GIX), received a work order from IBM Cloud Inc. for AI infrastructure design, deployment and support services.
Welspun Corp advanced 4.91% after its wholly owned US subsidiary, Welspun Tubular, secured an order worth approximately Rs 4,000 crore for the supply of high-frequency induction-welded pipes.
IPO market remains active
The primary market remained active on Friday, with several ongoing public issues drawing strong investor interest, although subscription levels varied considerably across issues.
Moneyview received bids for 1,39,71,61,206 shares against 23,25,24,175 shares on offer, translating into a subscription of 6.01 times as of 5 pm on September 25.
The issue opened on September 24 and will close on September 28. The price band has been fixed at Rs 32-34 per share, with a minimum bid of 441 shares and multiples thereafter.
A-One Steels India received bids for 99,94,662 shares against 73,84,934 shares on offer, resulting in a subscription of 1.35 times. The issue opened on September 24 and closes on September 28. Its price band is Rs 385-405, with a minimum bid of 37 shares.
Elevate Campuses, which opened on September 23 and closes on September 25, received bids for 6,02,43,022 shares against 3,36,73,468 shares on offer, representing a subscription of 1.79 times. Its price band is Rs 343-362 and the minimum bid is 41 shares.
Among the issues closing on Friday, Adroit Industries (India) witnessed exceptionally strong demand. The company received bids for 1,39,11,08,943 shares against 78,72,900 shares on offer, translating into a subscription of 176.70 times. The issue carries a price band of Rs 126-134, with a minimum bid of 111 shares.
Swastika Infra was subscribed 7.60 times, receiving bids for 4,81,30,767 shares against 63,35,001 shares on offer. Its price band is Rs 175-185 and the minimum bid is 81 shares.
ArMee Infotech received bids for 1,81,29,880 shares against 74,30,356 shares on offer, resulting in a subscription of 2.44 times. The issue is priced in the Rs 350-375 range, with a minimum bid of 40 shares.
The primary market also showed weaker demand for some issues. AceVector received bids for 1,72,21,464 shares against 7,42,29,166 shares on offer, translating into a subscription of only 0.23 times.
AceVector opened for subscription on September 25 and will close on September 29. Its price band is Rs 30-32 per share, with a minimum bid of 468 shares.
Runwal Enterprises was subscribed 0.42 times, receiving bids for 50,85,906 shares against 1,21,11,294 shares on offer. The issue, which opened on September 25 and closes on September 29, has a price band of Rs 290-305 and a minimum bid size of 49 shares.
German Green Steel and Power received bids for 2,78,00,633 shares against 1,60,62,879 shares on offer, representing a subscription of 1.73 times. Its price band is Rs 132-139 and the minimum bid is 107 shares.
Orient Cables (India) received bids for 2,93,33,040 shares against 1,49,76,743 shares on offer, resulting in a subscription of 1.96 times. The issue has a price band of Rs 258-272, with a minimum bid of 55 shares.
Market outlook
Friday’s recovery restored some stability after the previous session’s sharp decline, but the overall market environment remained sensitive to external factors.
The combination of high crude prices, elevated US Treasury yields and geopolitical uncertainty continues to create a challenging backdrop for equities. At the same time, a marginally stronger rupee, easing crude prices and selective buying in domestic-facing sectors provided support to the benchmarks.
The recovery above the 23,100 level on the Nifty will therefore remain an important near-term market reference point, while investors are likely to continue tracking crude oil, global bond yields, currency movements and developments in international trade.
The mixed performance of mid- and small-cap indices also indicates that the rebound was not broad-based. Investors continued to favour select large-cap and sector-specific opportunities rather than making indiscriminate purchases.
For the coming sessions, global cues, oil prices and developments in US bond yields are likely to remain key determinants of market direction, while the ongoing IPO activity will keep the primary market in focus.
Data source: Stock exchange and market data contained in the supplied report; IPO subscription figures are as of 5:00 pm IST on September 25, 2026.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.