Indian equity benchmarks posted a robust recovery on Friday, ending a three-session losing streak despite continued geopolitical uncertainty stemming from the Israel-Iran conflict. The rebound was broad-based, fueled by easing crude oil prices, strong institutional buying, and gains across most sectoral indices.
At last check, the BSE Sensex surged 690 points, or 0.85%, to close at 82,052, while the NSE Nifty 50 advanced 215 points, or 0.87%, to settle at 25,009.
The rally coincided with a notable dip in crude prices. Benchmark Brent crude dropped more than 2%, trading near $77 per barrel. As a net importer of over 80% of its oil, India typically benefits from lower crude rates, which tend to bolster investor sentiment and ease inflationary pressures.
“While geopolitical tensions persist, the domestic markets witnessed strong buying interest driven by easing crude oil prices,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. “If the Nifty manages to sustain above the 25,000 level, the upward momentum is likely to continue,” he added, according to Business Today.
Foreign Institutional Investors (FIIs) continued their buying streak for the third consecutive session, recording net purchases of ₹934.62 crore in the previous trading day. Domestic Institutional Investors (DIIs) also remained active, with net inflows of ₹605.97 crore, according to exchange data.
The recovery comes as global equity markets remain cautious amid geopolitical risks. Still, the resilience of Indian equities, supported by sustained institutional flows and moderating commodity prices, provided a boost to investor confidence.
Market participants are expected to keep a close eye on further geopolitical developments and global macroeconomic signals to gauge near-term market direction.
