Brent crude hovering near $105 a barrel and persistent foreign outflows did little to dent Dalal Street on Friday, as private sector banks anchored a broader recovery and the rupee posted its sharpest two-day gain in weeks — giving investors a rare reason to exhale.
“…the positive undertone in the market was primarily supported by gains in private banking counters, recovery in the rupee against the US dollar, and resilient corporate earnings, which helped offset concerns arising from elevated crude oil prices,” said Ajit Mishra, SVP Research at Religare Broking.
The advanced 231.99 points, or 0.31 per cent, to close at 75,415.35, while the gained 64.60 points, or 0.27 per cent, to settle at 23,719.30. The session, however, was not without turbulence. After gaining as much as 164 points in the first half, the Nifty surrendered 135 points from its intraday peak as profit-booking kicked in near the key 23,800 resistance zone — a level the index has now failed to sustain above for the seventh consecutive session. NSE cash market turnover fell 7 per cent from the previous session.
On the sectoral front, Nifty Private Bank and Financial Services led the gains, followed by Metal and PSU Bank indices. Healthcare, Media, and Pharma were the day’s underperformers. At the stock level, Shriram Finance and Trent topped the gainers’ list, while Max Healthcare, Sun Pharma, and ONGC weighed on sentiment. The Nifty Midcap 100 ended marginally higher by 0.14 per cent, whereas the Nifty Smallcap 100 slipped 0.15 per cent, reflecting cautious positioning in the broader market. Market breadth remained neutral, with 249 stocks in the Nifty 500 universe closing in the red and the BSE advances-declines ratio settling at 1.12.
The rupee extended its recovery for a second consecutive session, strengthening 51 paise to close at 95.69 against the US dollar. The rebound follows the Reserve Bank of India’s active intervention in the currency market through its USD/INR buy-sell swap mechanism, which helped cap excessive weakness. A softer tone in imported commodity prices, aided by easing US-Iran tensions, provided additional tailwind for the domestic currency. On spot USDINR, resistance is seen at 96.20 and support at 95.40.
Gold softened domestically. While COMEX Gold stabilised around $4,535, MCX Gold fell nearly ₹400 to ₹1,59,200, as the rupee’s 0.70 per cent appreciation compressed the landed cost of the metal. Bullion markets are expected to remain sensitive to the US-Iran talks, dollar index movement, and rupee direction.
On a weekly basis, the Nifty ended 64 points higher and the Sensex added 232 points, with IT gaining 4.25 per cent and the Digital index up 2.75 per cent. Media was the week’s biggest loser, shedding over 4 per cent. Separately, the government flagged that peak electricity demand crossed 270 gigawatts for the fourth straight day amid a nationwide heat wave.
“…markets remained volatile on Friday and ended marginally higher amid mixed cues,” Mishra added, noting that “…continued foreign institutional outflows and broader global macroeconomic uncertainties kept investors cautious.”
For the coming sessions, analysts at Kotak Securities see the 23,700–23,750 zone as immediate support, equivalent to the 50-day SMA. A clean breakout above 23,850 on the Nifty could open a move toward 24,000–24,200, while a slip below 23,700 risks a pullback to 23,300–23,400. For Bank Nifty, support is clustered around 53,000–53,500; a hold above those levels could extend the pullback toward 54,500 and potentially 55,000. Broader direction will hinge on RBI policy cues, crude oil trajectory, the pace of FII flows, and any breakthrough — or breakdown — in US-Iran negotiations.