Stock markets closed higher on Friday, supported by gains in banking and financial stocks, a stronger rupee and hopes of easing tensions in the Middle East after signs of progress in talks between the US and Iran.
The BSE ended 231.99 points, or 0.31%, higher at 75,415.35. The Nifty 50 gained 64.60 points, or 0.27%, to close at 23,719.30.
Markets stayed largely range-bound through the session but managed to hold gains as investors bought financial and select consumption stocks.
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic markets remained supported by lower-level buying and stable global cues.
“Domestic markets traded with a mild positive bias, supported by buying at lower levels and moderately constructive global cues expecting easing tensions in the Middle East,” he said.
He added that globally, the artificial intelligence investment theme continued to support sentiment, while financial stocks led gains in India along with selective buying in auto and consumption shares.
Private banks and financial stocks were among the biggest contributors to the rally.
Axis Bank rose 2.52%, while ICICI Bank gained 1.77%. HDFC Bank added 0.97%, and Bajaj Finance climbed 0.85%.
Among sectoral indices, Nifty Private Bank rose 1.49%, while Nifty Financial Services gained 1.13%, making them the top-performing sectors of the day.
Other notable gainers included Trent, up 3.01%, Asian Paints, which gained 1.56%, and UltraTech Cement, up 0.82%.
However, weakness in IT, pharma and media stocks limited the market’s upside. TCS fell 0.45%, while Infosys declined 0.61%. Sun Pharma dropped 2.43%, becoming one of the top laggards on the Nifty.
Sectorally, Nifty Media fell 1.47%, Nifty Healthcare slipped 1.52%, and Nifty IT was down 0.37%.
Investor sentiment improved after reports suggested some progress in talks between the US and Iran aimed at ending the nearly three-month-long conflict.
Markets also took support from expectations that easing tensions in the Middle East could help cool prices and reduce pressure on inflation.
Analysts said hopes of geopolitical stability helped improve risk appetite globally.
The Indian rupee also strengthened sharply against the US dollar, supporting overall market mood.
The rupee rose 0.53% to close at 95.69 against the dollar, moving above the 96-per-dollar mark for the first time in a week.
The recovery came after aggressive intervention by the Reserve Bank of India to support the currency. Reuters reported that the RBI stepped in to slow the rupee’s fall after it weakened from around 94.50 to nearly 97 against the dollar.
A stronger rupee is generally seen as positive for markets because it reduces imported inflation and supports foreign investor confidence.
Broader market indices showed mixed movement.
Nifty Midcap 100 ended 0.14% higher, while Nifty Smallcap 100 slipped 0.15%.
Among other sectors, Nifty Auto rose 0.12%, Nifty Metal gained 0.44%, and Nifty PSU Bank added 0.22%. Nifty Realty and Nifty Oil & Gas ended marginally lower.
India VIX, often called the market’s fear gauge, stood at 17.91, showing that volatility concerns still remain despite the market recovery.
Nair said markets continue to remain range-bound. “Strong DII inflows are cushioning the downside, while persistent FII selling is limiting the upside,” he said.
According to him, the market currently remains in a “buy-on-dips and sell-on-rallies” phase.
“A sustained uptrend will likely require geopolitical stability and softer oil prices, which would strengthen macro conditions and improve FII sentiment,” he added.
Overall, markets ended the week on a positive note, supported by financial stocks, rupee recovery and hopes of easing geopolitical tensions, though investors remain cautious due to continued uncertainty around oil prices and foreign fund flows.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)