Domestic markets defied weak global cues and a sharp spike in oil prices to end the truncated trading week with modest gains.

After sliding to an intraday low of 71,546, the benchmark Sensex staged a sharp recovery of 2.5 per cent, or 1,774 points, to settle at 73,320. Despite the rebound, the index ended the week 0.4 per cent lower. The Nifty 50, which touched a low of 22,183 during the session, closed at 22,713, up 0.2 per cent over the previous close, but down 0.5 per cent for the week.

This marked the sixth consecutive weekly decline for both indices — their longest losing streak since October 2025.

The positive close came despite a near-10 per cent surge in Brent crude prices, and a sharp selloff across European and Asian markets. Sentiment turned risk-averse after US President Donald Trump said Washington would hit Iran “extremely hard” over the next two to three weeks, dashing hopes of a near-term de-escalation that had buoyed up global markets a day earlier. Brent crude climbed close to $110 per barrel following the remarks.

Market participants attributed the domestic rebound to value-buying and short-covering at lower levels. Gains in heavyweight IT stocks and a strengthening rupee also lent support.

Back home, macroeconomic signals remained mixed, with manufacturing growth slowing to a near four-year low. Furthermore, the government’s move to raise jet fuel and commercial LPG prices stoked inflation and growth concerns.

Ajay Menon, managing director and chief executive officer (MD&CEO) – wealth management, Motilal Oswal Financial Services, said markets were unsettled after fresh comments from the US President dampened hopes of a swift resolution to the conflict. “The escalation in geopolitical tensions has heightened near-term uncertainty, triggering volatility,” he said, adding that rising Brent crude prices and US bond yields remain negative for equities.

Broader markets underperformed the benchmarks, with the Nifty Smallcap 100 and Nifty Midcap 100 indices ending about 0.3 per cent lower each. Market breadth remained mixed. Among sectoral indices, IT, realty, metals, and FMCG stocks advanced, while auto and pharma declined.

Foreign portfolio investors (FPIs) pulled out around ₹10,000 crore from domestic equities on Thursday. In March, FPIs dumped shares worth over ₹1.12 trillion, highest ever for a calendar month. However, domestic mutual funds pumped in nearly ₹90,000 crore, most since October 2024.

The Nifty IT index rose 2.6 per cent, the most among sectoral indices, led by gains in HCLTech, Tech Mahindra, Infosys, and TCS — the top contributors to the Sensex’s advance.

Brokerage HDFC Securities said the IT index’s recent underperformance has made valuations attractive. “The Nifty IT index has declined 24 per cent over the past three months, driven by concerns around artificial intelligence (AI)-led disruption and a delayed recovery in demand. It is now trading at 17.8 times one-year forward earnings, around 16 per cent below its 10-year average,” the brokerage said.

Meanwhile, the Nifty Pharma index fell nearly 1 per cent after reports that the US administration is considering tariffs on drugmakers that have not agreed to lower domestic prices.