Sensex settles 500 pts higher, Nifty above 25,700: Buying in heavyweight stocks among key factors behind market rise

Sensex, Nifty see strong buying in Friday's trade. 

The equity benchmark indices settled higher for the third consecutive day on Friday, supported by sustained foreign fund inflows, firm buying in heavyweight stocks and easing crude oil prices.

The BSE Sensex advanced 484.53 points or 0.58 percent to close at 83,952.19. The NSE Nifty gained 124.55 points or 0.49 percent to end at 25,709.85. During the day, the Sensex had touched a high of 84,172.24, up 704.58 points or 0.84 per cent.

Asian Paints, Mahindra & Mahindra, Bharti Airtel, Max Healthcare and Hindustan Unilever were among the top gainers in the Nifty pack, rising up to 5 percent.

Key factors behind the market rise

1) Foreign fund inflows: Foreign Institutional Investors (FIIs) continued their buying for the second straight session, purchasing equities worth Rs 997.29 crore on Thursday. Domestic Institutional Investors (DIIs) also bought shares worth Rs 4,076.20 crore. Sustained FII inflows strengthen market liquidity and investor sentiment.

2) Crude oil prices: Global oil benchmark Brent crude declined 0.25 percent to USD 60.94 a barrel. Lower crude prices ease inflationary pressures and reduce India’s import bill, providing support to the domestic market.

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3) Rupee appreciation: The rupee rose 21 paise to 87.75 against the US dollar in early trade, helped by a weaker American currency and likely intervention by the Reserve Bank of India. A stronger rupee makes imports cheaper and often boosts foreign investor confidence.

4) Buying in heavyweights: Gains in frontline stocks such as Reliance Industries, Asian Paints and major banking shares lifted overall market sentiment. Buying in large-cap shares typically improves market breadth and supports index performance.

5) Banking index strength: The Bank Nifty index crossed its previous peak of 57,628, touching a new high of 57,651 on optimism over upcoming results from major lenders HDFC Bank and ICICI Bank. The index has gained about 10,000 points since its March 2025 lows, reflecting strong sectoral performance.

Analyst view

Anand James, Chief Market Strategist at Geojit Financial Services, said oscillators suggest the need for a breather after Thursday’s sharp rally. "Dips to 25,400 appear likely today. However, if Nifty sustains above 25,520 after initial declines, it may push towards 25,670, though the move may not be sustainable," he added.

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