Banking stocks spearheaded gains in the afternoon session on Dalal Street on Friday, with Bank Nifty crossing the 56,000 mark and emerging as the biggest driver of the market rally amid easing geopolitical concerns and a sharp decline in crude oil prices.
in the afternoon session after US President Donald Trump declared that the United States had ended the war with Iran, boosting risk appetite across global markets. Lower crude prices further strengthened sentiment, particularly for emerging markets.
At 12.34 pm, the Sensex was up 733 points, or 0.99 per cent, at 74,565.55, while the Nifty 50 gained 186.25 points, or 0.8 per cent, to 23,347.85.
Asian markets rallied in line with overnight gains on Wall Street.
Indian government bonds advanced after Brent crude futures fell nearly 2 per cent to $88.66 per barrel in Asian trade. The decline in oil prices also boosted demand ahead of the weekly debt auction.
Banking stocks drive gains
Bank Nifty rose more than 1 per cent to reclaim the 56,000 level, supported by strong buying in Yes Bank, Bank of Baroda, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Federal Bank.
Sectorally, all major indices traded in the green. Banking and financial stocks led the gains, followed by realty and consumer durables. IT and oil & gas indices traded largely flat.
Among the Nifty 50 constituents, InterGlobe Aviation, Shriram Finance, Eternal, Bajaj Finance and Titan were the top gainers, while ONGC, Tech Mahindra, Coal India and Power Grid traded lower.
Broader markets outperform
Broader markets continued to outperform the benchmark indices. The Nifty Midcap 100 rose 1.17 per cent, while the Nifty Smallcap 100 gained 1.64 per cent.
In the midcap segment, Vodafone Idea, LTF, Ashok Leyland, Motilal OFS, Tata Investment and Tube Investments advanced 3-5 per cent. Oil India, ICICI Lombard, Lenskart and Bharat Forge declined 1-2 per cent.
Among smallcaps, IFCI, Data Patterns, Netweb Technologies and JBM Auto surged 5-19 per cent, while Gland Pharma, Meesho and Affle slipped 1-2 per cent.
On the BSE, IFCI, MTAR Tech, Authum Investments, Ixigo and Goldiam International rallied 11-19 per cent. On the downside, Cemindia Projects, ONGC, Uno Minda and Oil India fell 3-5 per cent.
Technical outlook
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the banking stocks continued to outperform the broader market.
According to Shah, the Nifty has immediate support in the 23,310-23,330 zone, while resistance is placed at 23,440-23,460. A break below 23,310 could drag the index towards the 23,220-23,240 range, whereas a decisive move above 23,460 may extend the rally towards 23,600.
On the derivatives front, he highlighted significant call writing at the 23,400 and 23,500 strikes, while the 23,300 strike holds the highest put open interest, followed by the 23,200 strike. The Nifty’s advance-decline ratio stood at a healthy 37:13, indicating broad-based market participation.
For the Sensex, Shah sees support at 74,300 and resistance around 74,900.