The equity benchmarks closed sharply higher on Friday, with the Nifty 50 reclaiming the psychologically critical 24,000 mark, snapping a brutal six-week losing streak that had wiped out nearly three weeks of gains in a single month. The gained 918 points or 1.20 per cent to settle at 77,550, while the advanced 275 points, or 1.16 per cent, to close at 24,050.
The week’s gain of 5.89 per cent for the Nifty — its best since early February 2021 — came as investors cautiously priced in hopes of a diplomatic breakthrough in the US-Iran conflict, which has rattled global markets since late February. The Strait of Hormuz, through which roughly 20 per cent of global oil supply passes, remains effectively closed following Iran’s retaliation to a US-Israeli military operation on its nuclear facilities — a crisis that sent Brent crude surging from $78 to over $115 a barrel in just over a month.
“Indian equity markets ended higher, supported by positive global cues and optimism surrounding geopolitical de-escalation efforts in West Asia… auto and realty stocks advanced, while banking stocks posted firm gains… IT stocks underperformed as concerns over AI-related disruptions prompted profit-booking,” said Vinod Nair, Head of Research, Geojit Investments.
The session’s tone was broadly constructive. Auto and realty led sectoral gains, rising over 2.5 per cent, with Nifty Auto and Nifty Realty both clocking pull-backs of nearly 13 per cent and 19 per cent from their recent lows. Eicher Motors and Asian Paints were the top Nifty gainers. IT was the session’s lone laggard, falling 1.7 per cent, dragged by TCS results and lingering concerns about AI-led disruption to India’s headcount-driven services model — a theme that triggered a historic 19.5 per cent single-month collapse in the Nifty IT index back in February.
Broader markets continued to outperform benchmarks, with Nifty Midcap 100 and Smallcap 100 gaining 1.52 per cent and 1.65 per cent, respectively. The BSE advances-declines ratio hit 3.54, marking seven consecutive sessions of positive breadth. For the week, both indices surged nearly 8 per cent.
was the session’s biggest drag, as concerns mounted over margin compression from rising input costs — fuel and explosives — that the company has chosen to absorb rather than pass on, raising near-term earnings visibility concerns.
“Nifty continued its upward momentum… the index sustained above key levels through the session, reinforcing the positive structure and suggesting that dips are being actively bought… traders should watch how the index behaves near resistance, while staying cautious about any global cues,” said Gaurav Udani, Founder, Thincredblu Securities.
On the currency front, the rupee depreciated mildly for the second straight session, trading around 92.7 against the dollar, though it posted its second consecutive weekly gain — a tentative stabilisation from the sharp slide to 94 seen in late March. Domestic institutional buying and strong mutual fund inflows — equity MF flows rose 8 per cent month-on-month in February — continued to cushion the market against persistent FII outflows, which moderated in intensity from Wednesday.
India VIX cooled over 6 per cent to around 18.8, though it remains elevated. Technically, Nifty now faces immediate resistance in the 24,200–24,250 zone; a sustained close above could open the door to 24,400 and 24,600. Bank Nifty, which surged 8.47 per cent for the week, faces resistance at 56,400–56,500.
“Indian markets are likely to remain volatile next week, with the outcome of peace talks over the weekend expected to be a key driver… any easing of tensions could provide further support; however, the durability of the recovery will hinge on meaningful progress in negotiations and stability in global energy markets,” said Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services.
All eyes now turn to Islamabad this weekend, where US Vice-President JD Vance is set to lead talks with Iranian officials — a make-or-break moment for markets that have been whipsawed by the energy shock and are desperate for a credible de-escalation signal.