Markets: Amid global chaos, resilient Indian stocks rebound by 1.29%
Virendra Pandit
New Delhi: Despite multiple global uncertainties, the escalating conflict between Israel and Iran, and fears of a wider war in the Middle East, Indian stocks showed their resilience on Friday and markets snapped a three-day losing run.
Equity benchmark indices Sensex and Nifty rebounded sharply by over 1 percent after sliding for the past three sessions. Their recovery was propelled by bargain hunting in financial, telecom and tech stocks amid a correction in global crude prices.
After a flat start, the 30-share BSE Sensex later found its mojo back on Friday and surged 1,046.30 points or 1.29 percent to settle at 82,408.17. The 50-share NSE Nifty climbed 319.15 points or 1.29 percent to 25,112.40.
From the Sensex stable, Bharti Airtel, Nestle, Mahindra & Mahindra, Power Grid, Reliance Industries, NTPC, Eternal and HDFC Bank were among the biggest gainers. In contrast, Axis Bank and Maruti were the laggards. Global oil benchmark Brent crude dropped 1.93 percent to USD 77.33 a barrel, amid speculation that it might climb to the USD 90 a barrel next week.
The national equity indices surged as Middle East tension moderated with risk of immediate military actions reduced as US dialogue with Iran is expected to take place in the two-week window President Donald Trump has offered.
The development led the crude price to correct, favouring domestic markets and boosting foreign investors’ sentiments. In the broader market, rapid fall in VIX index and buying was witnessed in rate sensitives and consumer-oriented sectors like finance, automobile, and reality and in anticipation of better Q1FY26 results led by rate cuts benefits, drop in inflationary pressure and rebound in consumer spending.
Nifty moved up sharply after three days of consolidation, resuming its short-term rally. Moreover, the index has reclaimed the 21-day exponential moving average (EMA), which could provide further momentum for an upward move. Support is now placed at 24,850, and the index remains a ‘buy on dips’ as long as it holds above this level. On the higher side, it may continue advancing towards 25,350 and beyond, market watchers said.
