Domestic benchmark indices Sensex and Nifty surged 1.3 per cent on Friday as investors’ risk appetite improved after reports suggested de-escalation in Israel-Iran conflict.
The BSE’s Sensex rose 1.29 per cent, or 1,046.3 points, to close at 82,408.17. The broader Nifty climbed 1.29 per cent, or 319.15 points, to end at 25,112.4.
“Markets showed strength and gained over a percent after three sessions of lackluster movement. Sentiment improved after the news report indicated a possible de-escalation in the Iran-Israel conflict, with the US signaling a delay in potential action, which led to a softening in crude oil prices,” the said Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd.
US President Donald Trump has said that a decision on whether or not the US will get directly involved in the Iran-Israel conflict within two weeks, according to media reports.
Markets witnessed consolidation after the recent spell of subdued trend, as strong European cues and positive Dow Futures triggered a massive rally in local benchmarks.
“Investors also resorted to short covering ahead of next week’s monthly derivatives expiry. Despite the rebound, investors would still maintain caution due to the ongoing West Asia conflict, as any spike in crude oil prices owing to escalation in tension could fuel uncertainty and spook markets,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Additionally, consistent buying by FIIs in the cash segment further supported the market.
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All key sectors participated in the rally, with realty, financials, and metals emerging as top gainers. The broader indices also saw relief, posting gains in the range of 1-1.4 per cent. The Nifty Realty ended 2.11 per cent up and the Nifty Metal climbed 1.09 per cent.
The Nifty Midcap 100 rose 1.46 per cent and the Nifty Smallcap 100 gained 1.01 per cent.
India VIX, which is an indicator of the market’s expectation of volatility over the near term, declined 4.08 per cent to 13.67.
The NSE companies that gained the most included Trent (3.96 per cent), Jio Financial Services (3.31 per cent), Mahindra & Mahindra (3.07 per cent), Bharti Airtel ( 3.04 per cent) and Nestle India (2.77 per cent).
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According to Religare Broking’s Mishra, the outlook remains positive, and a decisive move above 25,200 on the Nifty would signal the end of the ongoing five-week consolidation phase and open the path toward the 25,600–25,800 zone.
In the absence of any major domestic events, global markets will continue to guide sentiment.
“We maintain our positive yet cautious stance and advise focusing on stock selection, particularly in line with sectoral trends,” he said.