Indian markets gained over 1% on Friday, recovering part of the week's losses as strong earnings from TCS and Indian Bank boosted sentiment. Falling crude oil prices and active buying by foreign and domestic investors further supported the recovery in PSU banks and IT stocks.
Indian equity markets closed the trading week on a positive note, with benchmark indices recording their second straight session of gains. The Sensex climbed 827.57 points to settle at 77,569.39, while the Nifty rose 244.10 points to end at 24,206.90. This performance helped investors recover a significant portion of the wealth lost earlier in the week, with the total market capitalization of the BSE increasing by Rs 5.80 lakh crore to reach Rs 481.75 lakh crore.
Earnings-Driven Buying in IT and PSU Banks
The rally was largely attributed to positive investor reactions to quarterly financial results from major players like Tata Consultancy Services (TCS) and Indian Bank. Strong performance reports from these companies provided a fillip to their respective sectors. The Nifty PSU Bank index led the sectoral charge with a 3.03% rise, reflecting optimism toward public sector lenders, while the Nifty IT index gained 1.96%. Market breadth remained robust, as nearly 2,883 stocks advanced on the BSE, significantly outpacing the 1,377 that declined.
Easing Crude Prices and Volatility
External factors also played a crucial role in stabilizing investor sentiment. Global crude oil prices fell to approximately $75 per barrel, down from the $79 levels seen earlier in the week. For India, which imports a large portion of its oil needs, lower crude prices help ease concerns regarding inflation and the country's import bill. Furthermore, the India VIX, which measures market volatility, dropped 8.33% to 12.25, suggesting that investors are feeling more confident compared to the heightened nervousness witnessed in the previous sessions.
Institutional Participation
Market movement was backed by sustained interest from both institutional categories. Provisional data shows that foreign portfolio investors (FPIs) net-purchased shares worth Rs 2,603.72 crore, while domestic institutional investors (DIIs) invested Rs 2,019.68 crore. Reliance Industries emerged as a major support for the benchmark, contributing roughly one-fifth of the Sensex's total gains, while other large-cap stocks like ICICI Bank, HDFC Bank, Axis Bank, and Larsen & Toubro provided significant momentum.
Despite Friday’s sharp recovery, the indices ended the week with marginal losses of roughly 0.25%, breaking a four-week winning streak. Moving forward, market participants will likely track how sustained earnings reports from other major corporations influence sector-specific valuations. Investors may also monitor whether the current trend in crude oil and geopolitical developments provides a stable base for the markets in the coming week.