Domestic equity markets surged on Friday, boosted by easing fears around the Middle East conflict. The BSE Sensex jumped 1.29%, or 1,046.3 points, to settle at 82,408.17, while the NSE Nifty climbed 319.15 points, or 1.29%, to close at 25,112.4.
The rally broke a three-day streak of lacklustre trade, injecting fresh optimism among traders.
Market Rebounds on Positive Global Cues
Ajit Mishra, Senior Vice President, Research at Religare Broking Ltd, said:
“Markets showed strength and gained over a percent after three sessions of lackluster movement. Sentiment improved after reports indicated a possible de-escalation in the Iran-Israel conflict. The US reportedly signaled a delay in action, calming crude oil prices.”
This shift in global mood helped improve risk appetite, triggering a broad-based rally in Indian equities.
Crude Softens, Investors Cheer
The potential de-escalation led to a softening in crude oil prices, which directly benefits India as a major oil importer. Lower crude prices ease inflation pressures and improve corporate earnings outlook, especially for sectors like auto, FMCG, and aviation.
Market watchers noted that the development helped in reversing bearish sentiment that had gripped the bourses earlier in the week.
Sectoral Performance: Banks, IT, and Auto Lead
Buying was seen across key sectors. Nifty Bank gained over 1.6%, led by HDFC Bank and ICICI Bank.
The IT sector also rebounded with stocks like Infosys and TCS rising more than 1%.
Auto stocks rallied on crude correction and expectations of robust quarterly sales.
Top Nifty gainers included:
- Eicher Motors (+3.8%)
- HDFC Bank (+2.6%)
- TCS (+2.1%)
- Adani Enterprises (+2.4%)
Volatility Drops, Foreign Flows Turn Positive
India VIX, the volatility index, slipped by over 5%, reflecting lower fear levels among market participants. Meanwhile, foreign institutional investors (FIIs) were net buyers for the day, adding Rs 2,400 crore to Indian equities, according to provisional data.
Domestic institutional investors (DIIs) also maintained a buying streak, extending support to frontline stocks.
Global Markets Stable, Await US Decision
Reports indicated that US President Donald Trump will take up to two weeks to decide whether to intervene in the Iran-Israel conflict. The delay was interpreted as a positive signal by markets, easing fears of a broader regional war.
European stocks also traded higher, with Germany’s DAX and UK’s FTSE 100 posting gains.
US stock futures showed signs of recovery, pointing to a strong Wall Street opening.
Technical Outlook: Nifty Eyes 25,300
According to technical analysts, Nifty has crossed the psychological 25,000 mark, and short-term resistance is now seen at 25,300.
“Momentum indicators suggest bullish continuation. As long as Nifty holds above 24,800, dips could be used as a buying opportunity,” said a Kotak Securities analyst.
What’s Ahead for Investors?
Market participants will now watch for further clarity from global leaders on the geopolitical front. Additionally, macroeconomic cues like India’s inflation print and global oil movement will influence direction in the coming sessions.