Mumbai, September 25: Indian equity markets staged a measured recovery on Friday, with the benchmark Sensex and Nifty closing higher as easing crude oil prices and reports of progress towards a phased US-Iran agreement improved investor sentiment.
The BSE Sensex gained 315 points, or 0.43 per cent, to close at 73,895, while the NSE Nifty rose 77 points, or 0.34 per cent, to settle at 23,140. The Nifty Bank advanced 0.26 per cent, or 389 points, to 55,762.
The rebound came a day after the benchmark indices suffered their sharpest decline in several weeks, as investors responded positively to reports of diplomatic discussions between the United States and Iran. Easing crude prices also provided some relief to markets.
Crude prices ease
Brent crude moved towards $105.60 a barrel during Friday’s session after gaining more than 7 per cent over the previous two sessions. West Texas Intermediate (WTI) traded below $94 a barrel.
Market sentiment was supported by hopes that progress in US-Iran discussions could eventually help restore energy flows from the Middle East. However, elevated crude prices continued to remain a concern for oil-importing economies such as India.
Selective buying continues
The broader market performance remained mixed. The Nifty Midcap 100 declined 0.23 per cent, while the Nifty Smallcap 100 gained 0.17 per cent. The Nifty Next 50 advanced 0.39 per cent.
Most sectoral indices on the NSE ended higher, although IT, media, pharma and healthcare indices closed in negative territory. The Nifty Consumer Durables index gained 0.87 per cent, followed by Nifty Auto at 0.76 per cent and Nifty Realty at 0.70 per cent.
The divergence between large-cap and broader-market indices indicated that investors continued to adopt a selective approach rather than making broad-based purchases.
Rupee remains volatile
The Indian rupee remained volatile during the week, trading in the ₹95.57–₹95.97 per dollar range and ending around ₹95.85.
Movements in crude oil and gold prices, along with a stronger US dollar, continued to influence the currency. Elevated global bond yields and continued foreign selling also remained concerns for domestic equities.
Global risks remain
Despite Friday’s recovery, market participants continued to monitor several external factors, including US Treasury yields, crude oil prices, foreign investor flows and developments in the Middle East.
Analysts cited in market commentary said the sustainability of the rebound would depend on crude prices stabilising, global bond yields cooling and selling pressure from foreign investors easing. The Friday recovery was characterised largely as selective value buying, rather than evidence of a broad-based shift in risk appetite.
