Stock Market – Sensex and Nifty Rise as Global Signals Improve Sentiment
Stock Market – Indian equity markets closed higher on Friday after favourable overseas trends, lower crude oil prices and expectations of a less restrictive global interest-rate cycle improved risk appetite. Developments from the India-Japan Summit and a continued rebound in information technology shares also supported the market.
Market outlook and global factors –
The Nifty 50 ended at 24,270.85, up 95.15 points or 0.39 per cent. The BSE Sensex added 261.79 points, or 0.34 per cent, to finish at 77,763.91. Over the week, the Nifty 50 gained nearly 1 per cent.
Analysts said investors responded positively to softer signals from global markets and a decline in crude oil prices, which could ease inflationary pressures for oil-importing economies such as India.
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities drew support from improved global cues and increasing expectations that major central banks may move towards a more accommodative policy stance. He said recent US labour market data had strengthened hopes of softer interest rates globally.
India-Japan Summit supports confidence –
Nair said the outcomes of the India-Japan Summit added to investor confidence. He also pointed to the recovery in IT stocks and softer crude oil prices as important factors supporting the domestic market.
Lower oil prices are generally seen as beneficial for India because the country depends heavily on imported crude. A sustained fall in prices can help reduce pressure on the current account and inflation, while also supporting corporate margins in some sectors.
Realty, IT and pharma stocks lead gains –
Real estate stocks were the strongest performers among sectoral indices. The Nifty Realty index rose 2.19 per cent during the session. Nifty IT advanced 1.76 per cent, while Nifty Pharma gained 1.72 per cent.
The Nifty Metal index climbed 0.76 per cent. Nifty Financial Services rose 0.18 per cent, while Nifty FMCG recorded a marginal gain of 0.02 per cent. The Nifty Private Bank index ended largely unchanged.
Banking and auto shares face selling pressure –
Some sectors remained under pressure despite the broader market’s positive close. Nifty PSU Bank declined 1.54 per cent, making it the weakest sectoral index of the day. Nifty Media fell 0.45 per cent, while Nifty Auto slipped 0.44 per cent.
Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, said the market was supported by global optimism and the prospect of easier monetary conditions. He added that softer crude oil prices continued to provide a macroeconomic advantage for India.
Rupee strengthens against US dollar –
The Indian rupee appreciated by about 22 paise during the session. Trivedi said a weaker Dollar Index, which remained below 100.50, and reduced foreign institutional investor selling helped the domestic currency.
Riyank Arora, Associate Vice President for HNI and Derivatives at Hedged.in, said the broader market structure remained favourable for buyers, with benchmark indices holding above important support levels.
However, he noted that investors may remain cautious ahead of the weekend. Geopolitical developments involving the US-Iran situation and the Russia-Ukraine conflict could affect global sentiment. Minutes from the next US Federal Reserve meeting are also expected to influence the direction of the dollar and broader risk markets.
HCL Tech, Max Health, Sun Pharma and Dr Reddy’s Laboratories were among the leading gainers in the Nifty 50. Axis Bank, State Bank of India, Larsen & Toubro and Bajaj Auto were among the major laggards.
Brent crude was trading at USD 71.84 per barrel, up 0.06 per cent at the time of reporting. Spot gold rose 1.38 per cent to USD 4,179.84 per ounce as safe-haven demand remained firm.
Across Asia, South Korea’s KOSPI rose 5.44 per cent, while Japan’s Nikkei 225 gained 1.31 per cent. Hong Kong’s Hang Seng, Singapore’s Straits Times and China’s Shanghai Composite also closed higher.