Despite ongoing tensions in the Middle East that had kept the markets in red this past week, there was a sharp rebound by almost one per cent on Friday, triggered largely by a slight correction in global crude oil prices and domestic sectors like financial, telecom and tech stocks.
Renewed foreign capital inflows also supported the domestic equity gains that were reflected in benchmark indices Sensex and Nifty, both on a sliding-spree since Monday.
Despite a rather flat start on Friday, the 30-share BSE Sensex later snapped its three-day downward spiral and surged 1,046.30 points or 1.29 per cent to settle at 82,408.17. During the day, it had jumped 1,132.62 points or 1.39 per cent to 82,494.49.
The 50-share NSE Nifty climbed 319.15 points or 1.29 per cent to 25,112.40, having regained its 25k mark.
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Vinod Nair, Head of Research at Geojit Investments Limited, said a moderation in the risk of immediate military action by the US on Iran had negated the downward trend seen in equity indices.
“As US dialogue with Iran is expected to take place, the development led the crude price to correct, favouring domestic markets and boosting foreign investors’ sentiments,” he said.
Nair said in the broader market, rapid fall in VIX index and buying was witnessed in rate-sensitive stocks and consumer-oriented sectors like finance, auto and reality.
“Buying was also seen in anticipation of better Q1FY26 results led by rate cuts benefits, drop in inflationary pressure and rebound in consumer spending,” he added.
From the Sensex stocks, Bharti Airtel, NTPC, Nestle, Eternal, Mahindra & Mahindra, HDFC Bank, Power Grid, and Reliance Industries were among the biggest gainers. On the other hand, Axis Bank and Maruti were the laggards.
In Asian markets, there were mixed signs. South Korea's Kospi and Hong Kong's Hang Seng settled after some gains, while Japan's Nikkei 225 index and Shanghai's SSE Composite index ended lower.
Markets in Europe were also trading higher in mid-session trade. The US markets closed on Thursday for the Juneteenth holiday.
Global oil benchmark Brent crude dropped 1.93 per cent to USD 77.33 a barrel.
Exchange data said Foreign Institutional Investors (FIIs) bought equities worth ₹934.62 crore on Thursday, while Domestic Institutional Investors (DIIs) also bought equities worth ₹605.97 crore.
On Thursday, the 30-share BSE Sensex had declined 82.79 points, or 0.10 per cent, to settle at 81,361.87. The Nifty had dipped 18.80 points or 0.08 per cent to 24,793.25.
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