Indian benchmark indices recovered on Friday after a sharp fall in the previous session, with the Sensex gaining 315 points and the Nifty 50 rising 77 points as investors returned to select banking, auto and large-cap stocks.
The BSE Sensex ended 315.20 points, or 0.43%, higher at 73,895.74, while the Nifty 50 gained 77.40 points, or 0.34%, to close at 23,140.50.
The rebound was helped by buying in several heavyweight stocks, although trading remained cautious amid concerns over foreign fund outflows, crude oil prices, global bond yields and geopolitical developments.
Axis Bank emerged as the top Sensex gainer, rising around 3%, while Asian Paints gained about 2%. Mahindra & Mahindra also rose around 2%. Bajaj Finance, HCL Technologies and Titan were among the other notable gainers, each adding more than 1%.
On the losing side, Trent and Infosys fell around 1% each, limiting the market’s gains.
The broader market gave a mixed picture. While the benchmark indices recovered, the Nifty Midcap 100 ended in the red, whereas the Nifty Smallcap 100 closed higher. This showed that investors remained selective even as buying returned to large-cap stocks.
The market opened with modest gains after Thursday’s steep decline. The Sensex rose more than 100 points in early trade, while the Nifty hovered around the 23,100 level. IT stocks remained under pressure during the session, while banking, financial services, auto, realty and metal stocks attracted buying interest.
The previous day’s sell-off had weighed heavily on investor sentiment. On September 24, the Sensex fell 1,247.71 points, or 1.67%, to 73,580.54, while the Nifty declined 383.70 points, or 1.64%, to 23,063.10. Several large-cap stocks, including HDFC Life, Bajaj Finance, Axis Bank and Bajaj Finserv, came under heavy selling pressure.
Friday’s recovery therefore covered only part of the previous session’s losses.
Banking stocks support recovery
Banking stocks were among the main drivers of Friday’s rebound. Axis Bank led the gains, recovering strongly after falling sharply in the previous session.
Mahindra & Mahindra also supported the market, while Asian Paints and other large-cap names added to the upward move.
The recovery was not uniform across sectors. IT stocks remained weak, with Infosys among the major laggards. Concerns around global technology demand and the broader international interest-rate environment continued to weigh on the sector.
Investors were also keeping an eye on the rupee. The Indian currency was trading at around ₹95.82 against the US dollar at 3.30 pm, compared with ₹95.96 in the previous session.
Global cues remain important
Global markets offered some support to Indian equities. European markets were trading higher, while US stock futures also pointed to a positive opening.
However, global bond markets remained a concern. The US dollar was on course for a second consecutive weekly gain as expectations of higher interest rates increased. US Treasury yields also remained elevated, adding pressure to emerging-market assets.
Crude oil prices remained another key factor for Indian investors. Oil prices have stayed sensitive to developments in the West Asia conflict and possible US-Iran talks. Any sustained rise in crude can increase India’s import bill and add to inflationary pressure.
Foreign investor selling has also remained a major concern for Dalal Street. Domestic institutional investors have provided some support, but persistent foreign outflows have kept the market under pressure.
Market volatility continues
The India VIX, a measure of expected market volatility, eased more than 4% on Friday, offering some relief after Thursday’s sharp sell-off.
Still, investors remained cautious. The market has been dealing with several competing signals, including global interest-rate expectations, crude oil movements, currency volatility and geopolitical tensions.
Friday’s session showed that investors were willing to buy stocks after the previous day’s decline, but the mixed performance of broader markets suggested that confidence had not fully returned.
The Sensex ended near 73,900, while the Nifty managed to reclaim and hold the 23,100 level. The focus now shifts to whether buying interest can sustain the recovery or whether global cues and continued foreign selling trigger another bout of volatility.
For investors, the coming sessions will remain important as markets assess crude oil prices, global bond yields, institutional fund flows and developments in West Asia. auto shares gain after sharp Thursday sell-off.