Indian Stock Markets Close Higher in Volatile Session Led by IT and PSU Bank Stocks
In a day marked by significant volatility, India's benchmark equity indices, the Sensex and Nifty, managed to close nearly half a percent higher on Friday. This positive finish came despite the indices surrendering most of their sharp intra-day gains, as persistent concerns over fuel-driven inflation and escalating geopolitical tensions in West Asia weighed on investor sentiment.
Index Performance and Intra-Day Movements
The 30-share BSE Sensex climbed 325.72 points, or 0.44 percent, to settle at 74,532.96. During the trading session, it had surged as much as 1,079.15 points, or 1.45 percent, to touch an intra-day high of 75,286.39 before retreating.
The broader NSE Nifty also edged higher by 112.35 points, or 0.49 percent, to close at 23,114.50. The index had jumped 343 points, or 1.49 percent, to hit 23,345.15 during the day, reflecting the intense volatility.
Sectoral Performance and Top Gainers
The rally was primarily supported by strong buying in IT, PSU bank, and metal stocks. Among sectoral indices, the BSE PSU Bank advanced 2.19 percent, followed by Focused IT (2.18 percent), IT (2.08 percent), healthcare (1.45 percent), metal (1.41 percent), and energy (1.03 percent).
Top gainers on the Nifty50 included:
- Tech Mahindra (3.30%)
- Tata Steel (3.29%)
- Infosys (2.88%)
- Trent (2.24%)
- Reliance Industries (2.14%)
On the BSE Sensex, top performers were:
- JSW Steel (3.43%)
- Tech Mahindra (3.30%)
- Tata Steel (3.29%)
- Coal India (3.08%)
- Infosys (2.88%)
Top Losers and Broader Market Trends
However, not all sectors participated in the gains. Financial services, private banks, realty, and BSE MidSmall Private Banks Quality Tilt ended in the red. The BSE MidCap Select index gained 0.97 percent, while the SmallCap Select index slipped 0.32 percent.
Top losers on the Nifty50 were:
- Hindalco (-2.55%)
- HDFC Bank (-2.23%)
- HDFC Life (-1.56%)
- ONGC (-1.38%)
- Kwality Wall’s (-1.35%)
Market breadth remained positive with 2,458 stocks advancing, while 1,804 declined and 170 remained unchanged on the BSE.
Inflation Concerns and Geopolitical Impact
Retail fuel prices moved higher as premium petrol was hiked by Rs 2 per litre, while bulk diesel rates for industrial users were increased by about Rs 22 a litre. This reflects the surge in global crude oil prices amid escalating conflict in West Asia, with Brent crude, the global oil benchmark, rising 1.88 percent to USD 110.7 per barrel.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "Positive comments aimed at de-escalating the conflict and avoiding attacks on oil and gas infrastructure led to a moderate rebound during the day. However, investor sentiment remains fragile, with gains tapering off as participants remain reluctant to hold positions over the weekend amid war-related uncertainties."
Analyst Insights and Weekly Performance
Hariprasad K, Research Analyst and Founder of Livelong Wealth, noted, "Indian equities witnessed a relief-driven rebound, primarily driven by short-covering after a sharp build-up of bearish positions in the previous sessions."
Ajit Mishra, SVP – Research at Religare Broking Ltd, added, "Markets witnessed a volatile session on Friday and ended marginally higher, taking a breather after the previous session’s steep decline. The Nifty opened on a firm note following positive global signals and maintained gains in the early hours. However, selling pressure resumed as the session progressed, leading the index to surrender most of its gains by the close."
On a weekly basis, the BSE benchmark slipped 30.96 points, or 0.04 percent, while the Nifty declined 36.6 points, or 0.15 percent.
Global Market Context and Institutional Activity
In Asian markets, South Korea’s Kospi index ended higher, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng closed lower. Markets in Japan remained shut due to a holiday. European markets were trading in positive territory, while US markets had ended lower on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,558.19 crore on Thursday, according to exchange data, while Domestic Institutional Investors (DIIs) bought shares worth Rs 3,863.96 crore.
