Sensex and Nifty Surge Over 1% Amid Easing Global Tensions
Market Recovery in Mumbai
In Mumbai, the equity benchmark indices, Sensex and Nifty, experienced a significant rebound of over 1% on Friday, recovering from a three-day decline. This surge was driven by investors capitalizing on lower prices in the financial, telecom, and technology sectors, coinciding with a drop in global crude oil prices.
Traders noted that a favorable trend in international markets and renewed foreign investment contributed to the positive performance of domestic stocks, especially as tensions in the Middle East began to ease.
After a slow start, the 30-share BSE Sensex regained momentum, climbing by 1,046.30 points, or 1.29%, to close at 82,408.17. At its peak during the day, it reached 82,494.49, marking a rise of 1,132.62 points, or 1.39%.
Similarly, the 50-share NSE Nifty rose by 319.15 points, or 1.29%, finishing at 25,112.40.
According to Vinod Nair, Head of Research at Geojit Investments Limited, the surge in equity indices was influenced by reduced military action risks in the Middle East, following anticipated US-Iran discussions. This development led to a correction in crude prices, positively impacting domestic markets and enhancing foreign investor confidence.
In the broader market, a notable decline in the VIX index was observed, with increased buying in sectors sensitive to interest rates and consumer-oriented industries such as Finance, Auto, and Realty. This optimism was fueled by expectations of improved Q1FY26 results, driven by anticipated rate cuts, reduced inflation, and a rebound in consumer spending.
Among the top gainers in the Sensex, companies like Bharti Airtel, Nestle, Mahindra & Mahindra, Power Grid, Reliance Industries, NTPC, Eternal, and HDFC Bank stood out.
Conversely, Axis Bank and Maruti were among the laggards.
In Asian markets, South Korea's Kospi and Hong Kong's Hang Seng closed positively, while Japan's Nikkei 225 and Shanghai's SSE Composite indices ended lower.
European markets were also trading higher during mid-session.
US markets were closed on Thursday in observance of the Juneteenth holiday.
The global oil benchmark, Brent crude, saw a decline of 1.93%, settling at USD 77.33 per barrel.
Data from exchanges indicated that Foreign Institutional Investors (FIIs) purchased equities worth Rs 934.62 crore on Thursday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 605.97 crore.
On the previous day, the BSE Sensex had decreased by 82.79 points, or 0.10%, closing at 81,361.87, while the Nifty fell by 18.80 points, or 0.08%, to 24,793.25.