Domestic equities extended their gains for a second straight week on Friday as easing geopolitical concerns boosted global risk sentiment.
The Nifty 50 rose 0.65 per cent, or 157 points, to close at 24,354, while the BSE Sensex gained 0.65 per cent, or 505 points, to end at 78,494. Both indices rose more than 1.2 per cent for the week, after a sharp 6 per cent rally last week.
Lower crude oil prices also supported risk appetite in India, a major oil importer. Brent crude hovered around $95 per barrel during domestic market hours but fell further after Iran declared the Strait of Hormuz completely open to commercial traffic until the ceasefire between Israel and Lebanon.
The sharp up move has pushed India’s total market capitalisation back above the $5 trillion mark, reflecting a sharp rebound in investor sentiment. On March 30, the mcap of BSE-listed companies had declined to $4.35 trillion (₹ 412 trillion). At the peak, India’s mcap was at $5.7 trillion in September 2024.
“Even as investors await the second round of peace talks to resume, the receding crude oil prices is keeping the mood upbeat. If the talks translates into some positive developments, we will see markets extend gains,” said Ankur Punj, MD & Business Head at Equirus Wealth.
Nifty is still about 4 per cent below its pre-conflict levels, while the broader markets have erased all the losses. However, Nifty 50 and Nifty Smallcap 100 remain about 7.5 per cent off their all-time highs, while Nifty Midcap 100 are down less than 3 per cent from their highs.
“For small and midcaps, a more cautious approach is warranted. Allocation should preferably be through active managers focused on valuations and quality, and ideally through systematic investment plans,” said a note by DSP Mutual Fund.
All major sectoral indices with the exception of IT ended with gains on Friday. For the week, the Nifty Energy index gained 4.6 per cent, led by gains in shares of oil marketing companies, while the Nifty Metal index rose 4.2 per cent on firm global metal prices.
Foreign portfolio investors (FIIs) were net buyers for a second straight day, buying shares worth ₹683 crore on Friday.
Reliance Industries and Hindustan Unilever were the biggest contributors to market gains on Friday. Wipro and HDFC Life were the biggest losers on the Nifty after disappointing quarterly results.
