Indian equities rose on Friday as crude prices eased at the start of the day, emboldening investors to hunt for bargain-buying opportunities after the selloff in the previous session. But a surge in crude prices during the day made investors jittery, capping the gains.
The Sensex rose as much as 1,079 points or 1.5 per cent before ending the session at 74,533, a gain of 326 points or 0.4 per cent. The Nifty, meanwhile, ended the session at 23,115, a gain of 112 points or 0.5 per cent. The total market capitalisation of BSE-listed firms rose by ₹3 trillion to ₹429 trillion. The gains on Friday helped both indices to end the week with minor losses. During the week, the Sensex declined 0.04 per cent, and the Nifty fell 0.2 per cent. Both indices have posted declines in the past four weeks.
The gains on Friday came a day after benchmark indices posted their steepest falls in nearly two years amid a surge in oil prices. Higher oil prices tend to push up inflation in India and hurt economic growth, as the country imports most of its crude oil requirements. News reports suggested that Iran went ahead with attacks on Gulf states on Friday, and the US was considering taking over Iran’s Kharg Island — a key oil export site — to put pressure on Tehran to reopen the Strait of Hormuz. The rupee hit an all-time low against the US dollar and was at 93.7. The Brent crude was trading at $105.4, a gain of 0.3 per cent.
“Despite a positive start, the underlying tone remained fragile, with macro headwinds continuing to influence market direction. The near-term outlook remains cautious, with pressure from elevated crude oil prices and ongoing geopolitical tensions in West Asia. Sentiment continues to be weighed down by persistent foreign investor selling,” said Siddhartha Khemka, head of research for wealth management at Motilal Oswal Financial Services.
Market breadth was strong, with 2,414 stocks advancing and 1,863 declining. More than two-thirds of Sensex stocks gained. Reliance Industries, which rose 2.1 per cent, was the biggest contributor to Sensex gains, followed by Infosys, which rose 2.8 per cent. HDFC declined 2.4 per cent. It was the worst-performing Sensex stock and the biggest drag on the index. The private lender’s stock declined in the last two sessions after its chairman abruptly resigned, citing ethical differences.
Foreign Portfolio Investors (FPIs) were net sellers worth ₹5,518 crore, while domestic institutions were net buyers of ₹5,706 crore.
“For the Nifty, the 23,400-23,600 zone is likely to act as a resistance area in case of a rebound, while 22,800 remains a critical
