The BSE Sensex closed around 74,500, gaining roughly 0.5 percent, while the NSE Nifty50 settled near 23,100 with similar gains. However, the session remained volatile, with indices giving up a portion of early gains as investors stayed cautious.
The recovery was led by buying in information technology, metal stocks and public sector banks, which emerged as the top gainers of the day. Stocks in these sectors attracted investors looking to capitalise on recent corrections. On the other hand, weakness persisted in select financial stocks, with HDFC Bank continuing to remain under pressure following recent negative developments.
Friday’s gains come after markets witnessed a sharp sell-off on Thursday, when the Sensex plunged nearly 2,500 points in one of its worst single-day declines in recent years. The fall was triggered by escalating geopolitical tensions in West Asia, particularly involving Iran, which sparked fears of disruption in global crude oil supplies.
Although crude oil prices showed some easing on Friday, they remained elevated, keeping concerns around inflation and economic stability intact. Rising oil prices are seen as a key risk for India, which is heavily dependent on imports.
The Indian rupee also remained weak against the US dollar, adding to investor concerns over macroeconomic stability. Currency pressure, along with foreign investor outflows, continued to influence market sentiment.
Despite Friday’s rebound, overall sentiment remained cautious. Analysts noted that while valuations have become more attractive after the recent correction, uncertainty around global developments and domestic factors could keep markets volatile in the near term.
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