Mumbai: Equity benchmark indices Sensex and Nifty rebounded sharply by over 1 per cent on Friday after sliding for the past three sessions, propelled by bargain hunting in financial, telecom and tech stocks amid a correction in global crude prices.
A largely supportive trend overseas and renewed foreign capital inflows supported domestic equities following signs of easing tension in the Middle East, traders said.
After a flat start, the BSE Sensex later found its mojo back and surged 1,046.30 points or 1.29 per cent to settle at 82,408.17. During the day, it jumped 1,132.62 points or 1.39 per cent to 82,494.49.
The 50-share NSE Nifty climbed 319.15 points or 1.29 per cent to 25,112.40.
As many as 2,463 stocks advanced while 1,484 declined and 147 remained unchanged on the BSE.
This week, the BSE benchmark gauge jumped 1,289.57 points or 1.58 per cent, and the Nifty surged 393.8 points or .59 per cent.
“Equity indices surged as Middle East tension moderated with risk of immediate military actions reduced as US dialogue with Iran is expected to take place. The development led the crude price to correct, favouring domestic markets and boosting foreign investors’ sentiments.
“In the broader market, rapid fall in VIX index and buying was witnessed in rate sensitives and consumer-oriented sectors like Finance, Auto and Reality and in anticipation of better Q1FY26 results led by rate cuts benefits, drop in inflationary pressure and rebound in consumer spending,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex firms, Bharti Airtel, Nestle, Mahindra & Mahindra, Power Grid, Reliance Industries, NTPC, Eternal and HDFC Bank were among the biggest gainers.
In contrast, Maruti was the only laggard.
The BSE midcap gauge jumped 1.20 per cent, and smallcap index climbed 0.55 per cent.
All BSE sectoral indices ended higher. Telecom surged 2.73 per cent, realty (2.22 per cent), tech (1.42 per cent), capital goods (1.17 per cent), bankex (1.15 per cent), consumer discretionary (1.12 per cent) and metal (1.10 per cent).
“Sentiment improved after the news report indicated a possible de-escalation in the Iran-Israel conflict, with the US signalling a delay in potential action, which led to a softening in crude oil prices. Additionally, consistent buying by FIIs in the cash segment further supported the market,” Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
The rupee appreciated by 18 paise to close at 86.55 against the US dollar on Friday aided by a fall in global crude oil prices and a weakening greenback.
In Asian markets, South Korea’s Kospi and Hong Kong’s Hang Seng settled in positive territory, while Japan’s Nikkei 225 index and Shanghai’s SSE Composite index ended lower.
Markets in Europe were trading higher in mid-session trade.
US markets were closed on Thursday for the Juneteenth holiday.
Global oil benchmark Brent crude dropped 1.93 per cent to $77.33 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 934.62 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth Rs 605.97 crore.
On Thursday, the 30-share BSE Sensex declined 82.79 points, or 0.10 per cent, to settle at 81,361.87. The Nifty dipped 18.80 points or 0.08 per cent to 24,793.25.
“In the absence of any major domestic events, global markets will continue to guide sentiment. We maintain our positive yet cautious stance and advise focusing on stock selection, particularly in line with sectoral trends,” Mishra said.