Indian stock markets rebounded after a significant plunge, with the Sensex and Nifty showing gains amidst volatile trading driven by PSU bank, IT, and metal stocks, but concerns over fuel prices and global tensions persist.
Key Points
- Sensex and Nifty rebound after a sharp fall, driven by gains in PSU bank, IT, and metal stocks.
- Rising fuel prices and geopolitical tensions continue to weigh on investor sentiment, limiting market gains.
- Foreign Institutional Investors (FIIs) continue to sell off Indian equities, while Domestic Institutional Investors (DIIs) provide some support.
- Global oil prices rise due to conflict in West Asia, impacting fuel-driven inflation concerns in India.
- Market analysts cite short-covering and relief-driven rebound after bearish positions in previous sessions.
Equity benchmark indices Sensex and Nifty gave up most of their intra-day gains to end nearly 0.5 per cent higher on Friday, following intense buying in PSU bank, IT and metal stocks amid concerns over a further spike in fuel-driven inflation.
In another volatile session, the 30-share BSE Sensex climbed 325.72 points or 0.44 per cent to settle at 74,532.96. During the day, it jumped 1,079.15 points, or 1.45 per cent, to 75,286.39.
The 50-share NSE Nifty edged higher by 112.35 points, or 0.49 per cent, to end at 23,114.50. Intra-day, it jumped 343 points, or 1.49 per cent, to 23,345.15.
From the 30-Sensex firms, Tata Steel, Tech Mahindra, Infosys, Trent, Reliance Industries, Titan, NTPC and Sun Pharma were among the major gainers.
HDFC Bank, Bharat Electronics, Kotak Mahindra Bank and ICICI Bank were among the laggards.
Impact of Rising Fuel Prices
Meanwhile, the price of premium or higher-grade petrol on Friday was increased by Rs 2 per litre, and the rate of bulk diesel sold to industrial users was hiked by about Rs 22 a litre, reflecting the spike in global oil prices amid conflict in West Asia.
"Positive comments aimed at de-escalating the conflict and avoiding attacks on oil and gas infrastructure led to a moderate rebound during the day. However, investor sentiment remains fragile, with gains tapering off as participants remain reluctant to hold positions over the weekend amid war-related uncertainties," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Brent crude, the global oil benchmark, jumped 1.88 per cent to USD 110.7 per barrel.
"Indian equities witnessed a relief-driven rebound, primarily driven by short-covering after a sharp build-up of bearish positions in the previous sessions," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Global Market Overview
In Asian markets, South Korea's benchmark Kospi ended higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower. Markets in Japan were closed due to a holiday.
Equity markets in Europe were trading higher.
The US market ended in negative territory on Thursday.
FII and DII Activity
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,558.19 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 3,863.96 crore.
On Thursday, the Sensex tanked 2,496.89 points or 3.26 per cent -- its biggest single-day plunge since June 2024 -- to settle at 74,207.24. The Nifty tumbled 775.65 points, or 3.26 per cent, to end at 23,002.15.
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