By Our Business Correspondent
Domestic equity markets staged a measured recovery on Friday, supported by easing geopolitical concerns and softer crude oil prices, with benchmark indices closing near intraday highs. The rally reflected improving investor sentiment amid signs of de-escalation in West Asia and stability in global financial conditions.
The Nifty 50 advanced 156.80 points, or 0.65%, to close at 24,353.55, reclaiming the key 24,350 level. The BSE Sensex rose 504.86 points, or 0.65%, to settle at 78,493.54. Markets opened on a firm note and maintained a steady upward trajectory throughout the session, supported by broad-based buying.
The positive momentum was underpinned by cooling global cues. A reported ceasefire involving Israel and Lebanon, along with renewed optimism around potential diplomatic engagement between United States and Iran, contributed to a decline in crude oil prices. Brent crude slipped below $97 per barrel, easing inflationary pressures and improving the outlook for emerging markets such as India.
Market Performance
- Sensex: Gained 504.86 points (0.65%) to close at 78,493.54.
- Nifty 50: Advanced 156.80 points (0.65%) to settle at 24,353.55.
- Sectoral Leaders: FMCG, energy, and metals drove the rally.
- Lagging Sectors: IT and pharma remained subdued.
Sectorally, gains were led by fast-moving consumer goods (FMCG), energy and metal stocks, reflecting a rotation into defensives and cyclicals. Information technology and pharmaceutical stocks, however, remained subdued, indicating selective participation in the rally. Despite some index heavyweights like Hindustan Unilever, Reliance Industries and HDFC Bank witnessing declines, broader market strength kept indices buoyant.
Mid- and small-cap segments outperformed the benchmarks, highlighting continued risk appetite among investors. The BSE MidCap index gained 1.26%, while the SmallCap index surged 1.52%. Market breadth remained robust, with advancing stocks significantly outnumbering decliners on the BSE.
Volatility indicators also pointed to improved sentiment. The India VIX declined 4.86% to 17.21, suggesting reduced near-term uncertainty.
In the fixed income market, the yield on India’s 10-year benchmark government bond edged up slightly to 6.898%, reflecting stable demand conditions. In currency markets, the Indian rupee weakened marginally against the US dollar, trading around 92.85 compared to its previous close of 92.15.
Global cues remained supportive but mixed. US equity futures indicated a positive opening, with Dow Jones Industrial Average futures rising by around 175 points. European markets traded higher, while Asian indices ended mostly lower, reflecting cautious optimism amid lingering geopolitical uncertainties.
On Wall Street, benchmark indices extended their rally overnight, with the S&P 500 and the Nasdaq Composite scaling fresh record highs. Gains were driven by expectations of a potential resolution to the ongoing Iran-related tensions. The S&P 500 rose 0.26%, while the Nasdaq gained 0.36%, underscoring sustained investor confidence.
Commodity markets also reflected easing tensions. Brent crude for June settlement declined 3.39% to $96.02 per barrel, while gold futures on the domestic exchange saw marginal declines, indicating reduced safe-haven demand.
In primary markets, shares of Om Power Transmission made a positive debut, listing at a premium of 8.66% over its issue price, reflecting healthy investor interest in the offering.
Among individual stocks, Apollo Micro Systems surged sharply after securing a government licence for defence manufacturing, while Bajaj Consumer Care and Angel One rallied on the back of strong quarterly earnings. VST Industries and CRISIL also posted significant gains following robust financial performance.
Infrastructure-linked stocks remained in focus, with Rail Vikas Nigam gaining after winning a major railway contract. Renewable energy and financial services counters, including Waaree Renewable Technologies and KPI Green Energy, also registered gains on strong operational updates.
On the downside, Alok Industries declined after reporting a wider quarterly loss, while Madhya Bharat Agro Products fell despite strong profit growth, indicating profit booking.
Looking ahead, market participants are likely to track geopolitical developments, crude oil movements, and global monetary cues. While near-term volatility cannot be ruled out, the current trend suggests that improving global sentiment and stable domestic fundamentals continue to support Indian equities.