Sensex settles 300 pts higher, Nifty ends above 23,100; 5 key factors behind market gain

Stock market today news: Sensex, Nifty rise in trade.

• Sensex and Nifty rebounded after Thursday's sharp decline.
• Lower oil prices and value buying lifted market sentiment.
• Reliance Industries, Tata Steel, and Coal India led gains.

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The domestic equity markets, Sensex and Nifty, witnessed a volatile session on Friday, however settled higher, taking a breather after the previous session’s sharp decline.

The Nifty opened on a firm note following positive global signals and maintained gains in the early hours. However, selling pressure resumed as the session progressed, leading the index to surrender most of its gains by the close. Despite this, it managed to end with gains of nearly half a percent. The Nifty edged higher by 112.35 points or 0.49 percent to end at 23,114.50. Intra-day, it jumped 343 points or 1.49 percent to 23,345.15.

The Sensex climbed 325.72 points or 0.44 percent to settle at 74,532.96. During the day, it jumped 1,079.15 points or 1.45 percent to 75,286.39.

Ajit Mishra – SVP, Research at Religare Broking, said "Sentiment improved as crude oil prices cooled off from recent highs following statements from the US and Israel indicating that energy infrastructure in Iran would not be targeted for now. The sharp decline in the previous session also triggered some bargain hunting across sectors. However, lingering geopolitical tensions, continued weakness in the rupee and persistent FII outflows remain key overhangs for the market."

The Nifty and Sensex fell 3.3 percent each on Thursday, their worst session since June 4, 2024. However, they ended the week down only 0.16 percent and 0.04 percent, helped by value buying earlier and a partial rebound on Friday.

Ten of the 16 major sectors posted weekly losses. Small-caps fell 1.1 percent, while mid-caps rose 0.2 percent.

HDFC Bank , the benchmarks' top weight, lost 4.5 percent this week after the abrupt exit of its part-time chairman. Reliance Industries, Tata Steel and Coal India were among the top gainers in the Nifty50 pack, rising up to 4 percent, while HDFC Bank and Bajaj Finance were among the top drags, declining up to 2 percent. Market breadth was positive as about 2798 shares advanced, 901 shares declined, and 133 shares unchanged.

Meanwhile, the price of premium or higher-grade petrol on Friday was increased by Rs 2 per litre, and the rate of bulk diesel sold to industrial users was hiked by about Rs 22 a litre, reflecting the spike in global oil prices amid conflict in West Asia.

Nomura’s Sonal Varma on India said, " that the fiscal impact of the war on India will be approx 0.6 percent of GDP. Govt may need to lower excise duty on petrol & diesel to limit the hit on OMCs.

Key factors behind market rise

1) Easing crude oil prices: Brent crude, the global oil benchmark, jumped 1.88 percent to USD 110.7 per barrel after surging to USD 119.13 in the previous session amid attacks on energy infrastructure in West Asia. The fall in oil prices provided relief to global markets.

"Indications that Israel may avoid targeting Iran's energy infrastructure have eased immediate fears of supply disruptions, bringing some relief to markets. Sentiment remains highly driven by events in the Middle East," said Ponmudi R, CEO, Enrich Money.

2) Value buying: Investors resorted to value buying after Thursday’s sharp sell-off. Analysts had also indicated the possibility of a technical rebound from the 23,000 level.

Prashasta Seth, CEO at Prudent Investment Managers, said "The rebound in markets can be explained by value buying following the brutal correction recently, supported by favourable global cues such as easing crude oil prices and a recovery in risk sentiment. Moves like these are not unusual after such a massive volatility, as investors step in when valuations turn more reasonable. However it is important to view this as a tactical recovery rather than a clear start of a sustained uptrend. Key overhangs such as inconsistent FII flows, global macro uncertainties, and sector-specific risks including supply-side dependencies in segments like pharma continue to influence market direction."

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3) Firm global cues: Asian markets such as South Korea’s Kospi and China’s Shanghai SSE Composite were trading higher. US markets ended lower on Thursday but recovered from intra-day lows after easing geopolitical concerns.

4) Hopes of easing geopolitical tensions: Investor sentiment improved after indications of possible de-escalation in the West Asia conflict, including comments suggesting no further attacks on energy infrastructure.

"Today there is potential for the market to move up since hope of de-escalation is back. This has cooled Brent crude to USD 106 from the peak of USD 118," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments.

5) Buying in index heavyweights: Shares of Reliance Industries rose more than 2 percent on value buying after the previous session’s decline, supporting the overall market.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said "The index remained volatile during the day as choppiness in crude oil prices rocked Indian equities. On the hourly chart, the rising Nifty faced resistance at the 21EMA and slipped lower. On the daily chart, a Bullish Harami Cross has formed, which is a bullish reversal pattern. In the short term, the trend may improve with the potential to rise towards 23400–23600. On the lower end, 22950–23000 remains a key support zone, below which bearishness may re-emerge."

(With inputs from Reuters)

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