The markets finally managed to put an end to their four-session losing streak on Friday, although the recovery was not strong enough to erase concerns that have weighed on investors throughout the week.
The Sensex gained 362.57 points, or 0.48%, to close at 76,515.43, while the Nifty 50 added 24.25 points, or 0.10%, to settle at 23,897.70. The Nifty remained just short of the 23,900 mark, while the Sensex gave up a large portion of its early gains before the closing bell.
The session began on a much stronger note. The Sensex jumped more than 500 points in early trade and the Nifty briefly moved above 23,900, helped by positive global signals and buying in heavyweight stocks. As the day progressed, however, investors turned cautious, limiting the gains and keeping the broader market mood subdued.
Friday’s rebound was led largely by metal, insurance, oil and gas and selected financial stocks. The Nifty Metal index was among the strongest sectoral performers, rising more than 1%. Buying interest in Tata Steel and other metal counters provided an important lift to the benchmarks.
Insurance stocks were another bright spot. SBI Life Insurance emerged as the biggest Nifty 50 gainer, rising 3.50%. Tata Steel followed with a 2.49% gain, while HDFC Life Insurance advanced 2.42%. Reliance Industries gained 1.50%, Trent rose 1.33% and JSW Steel added 1.30%.
The gains, however, were offset by weakness in several large companies. HCL Technologies fell 1.94% to become the biggest Nifty 50 loser. Bharti Airtel declined 1.55%, while Maruti Suzuki slipped 1.27%. Bajaj Finserv lost 1.11%, Max Healthcare fell 1.02% and Tata Consumer Products declined 0.90%.
Pharmaceutical stocks remained under pressure, with the Nifty Pharma index falling around 0.68%. Auto, information technology, PSU banking and realty stocks also traded lower. The weakness in auto stocks has become a growing concern, with investors watching vehicle sales and demand trends closely.
The broader market delivered a mixed performance. While the Nifty Midcap index ended slightly lower, the Smallcap index gained around 0.2% and touched a fresh record high. More than 180 stocks recorded new 52-week highs during the session, showing that buying interest remained strong in selected pockets despite the cautious mood in the headline indices.
Several individual stocks also attracted attention. Capital-market companies gained after market regulator SEBI indicated that it would review the methodology used to determine derivative settlement prices. The move followed concerns over sharp volatility linked to the closing auction process. Shares of BSE, Angel One and other market-related companies saw buying interest.
Newly listed companies also had a strong debut. ESDS Software opened significantly above its issue price, while Priority Jewels also listed at a premium, reflecting continued investor appetite for select initial public offerings despite the uncertain market environment.
Global factors continued to remain important for Indian investors. Crude oil prices have climbed sharply amid renewed tensions involving the United States and Iran. Brent crude was trading close to $96 a barrel, raising concerns over India’s import bill and the potential impact on inflation. Higher oil prices are particularly important for India because the country relies heavily on imports to meet its energy requirements.
Global bond yields and expectations around US interest rates also influenced sentiment. US markets ended higher and Treasury yields eased, while Asian markets opened on a positive note. Investors are now closely watching upcoming US jobs data for clues about the Federal Reserve’s next move on interest rates.
Domestic institutional investors continued to provide some support to Indian equities. Foreign institutional investors remained sellers, while domestic institutions absorbed part of that selling pressure. This has helped prevent sharper declines even as global uncertainty continues to influence trading.
Despite Friday’s recovery, the weekly picture remained weak. Both the Sensex and Nifty recorded their fourth consecutive weekly decline, with the Sensex falling about 1% and the Nifty around 1.2% for the week. Rising crude prices, higher global bond yields and continued foreign selling have kept investors cautious.
Friday’s performance offered some relief but did not yet signal a decisive change in market direction. The ability of the Nifty to hold close to 23,900 will remain important in the near term. With global markets, crude oil and US economic data continuing to shape sentiment, traders are likely to remain selective rather than chase broad-based gains.