Indian benchmark indices opened higher on Friday, September 25, as investors returned to select beaten-down stocks following the sharp selloff in the previous session. The Sensex gained more than 150 points at the open, while the Nifty 50 moved above the 23,090 level.
The Sensex opened at 73,736.36, up 155.82 points, or 0.21%, from its previous close. The Nifty 50 opened at 23,095.70, gaining 32.60 points, or 0.14%.
The opening recovery followed a difficult session on Thursday, when both benchmarks recorded their steepest single-day fall in several weeks. The Sensex had plunged 1,247.71 points, or 1.67%, to 73,580.54, while the Nifty fell 383.70 points, or 1.64%, to 23,063.10.
Friday’s early gains reflected some value buying after the sharp correction. However, investors remained cautious as crude oil prices, global bond yields, foreign fund flows and geopolitical developments continued to influence market sentiment.
Financial stocks support recovery
Financial and auto stocks were among the early gainers on Friday. Bajaj Finserv, Shriram Finance, Power Grid, Bajaj Auto and Axis Bank were among the leading Nifty gainers.
Bajaj Finserv rose around 0.7%, while Shriram Finance gained about 0.6%. Power Grid, Bajaj Auto and Axis Bank also traded higher.
Other stocks providing support included ICICI Bank, Larsen & Toubro, Mahindra & Mahindra, State Bank of India, Bharti Airtel and Bajaj Finance.
The broader market also showed signs of recovery, with buying spread across several large- and mid-cap stocks. Domestic institutional investors have continued to provide support to Indian equities even as foreign investors remain net sellers.
IT stocks drag benchmarks
Information technology stocks remained under pressure during early trading. Infosys, TCS, Wipro, ONGC and Tech Mahindra were among the prominent Nifty losers.
Infosys fell more than 2% in early trade, while TCS declined close to 2%. Wipro and Tech Mahindra also traded lower.
The weakness in IT stocks offset some of the gains in banking, financial and auto shares. Technology companies remain sensitive to global economic conditions, US demand and currency movements, while elevated global bond yields have also affected investor sentiment towards growth-oriented stocks.
Crude oil remains key concern
Crude oil prices remained a major factor for Indian markets. Brent crude was trading above $105 a barrel, although prices eased from recent levels.
Investors are closely monitoring developments in the Middle East, particularly the US-Iran situation and risks to oil supplies. Higher crude prices are a concern for India because the country depends heavily on imports to meet its energy requirements.
Sustained high oil prices could increase pressure on inflation, the current account balance and the Indian rupee. A moderation in crude prices, on the other hand, could offer some relief to the domestic economy and corporate margins.
Rupee, FII flows in focus
The Indian rupee opened marginally stronger at around ₹95.90 against the US dollar, compared with its previous close of ₹95.96.
Currency movements remain closely linked to crude prices and foreign capital flows. A weaker rupee can raise the cost of imported commodities, particularly crude oil, while also increasing pressure on companies with significant foreign-currency exposure.
Foreign institutional investors continued to sell Indian equities. FIIs sold shares worth around ₹5,027 crore on Thursday, while domestic institutional investors bought equities worth approximately ₹4,301 crore.
The strong participation of domestic investors has helped cushion the impact of foreign outflows in recent sessions. However, sustained FII selling remains a concern for the near-term direction of the market.
Global cues remain mixed
Asian markets provided mixed signals on Friday as investors assessed interest-rate expectations, geopolitical developments and the outlook for global growth.
US Treasury yields remained elevated, keeping pressure on emerging-market assets. Higher US yields can make dollar-denominated assets more attractive and may encourage foreign investors to reduce exposure to riskier markets.
Investors are therefore watching developments in US interest rates alongside crude oil and geopolitical risks.
NSE shares remain in focus
The newly listed National Stock Exchange (NSE) also remained in focus after making its stock-market debut on Thursday.
NSE shares gained around 2% on the first day of trading and closed at ₹1,818 against the issue price of ₹1,785. The listing has added another closely watched stock to the Indian equity market.
For the broader market, Friday’s early recovery comes after a sharp correction and does not eliminate the concerns that triggered Thursday’s selloff. Crude oil prices, foreign fund flows, the rupee, global bond yields and developments in the Middle East are expected to remain key market drivers.
The immediate focus will be on whether the Nifty can sustain levels above 23,050-23,100 and whether buying interest broadens beyond financial and auto stocks. Continued weakness in IT majors could limit the recovery.
With global cues remaining uncertain, investors are likely to remain selective. The ability of domestic institutional buying to absorb foreign selling, along with movements in crude oil and the rupee, will be closely watched as trading progresses.