Indian stock benchmarks posted their biggest gains in over a month on Friday, with the Sensex closing 965 points higher. The rally was driven by heavyweight stocks and positive global sentiment, though overall market breadth remained cautious.
Indian equity markets staged a sharp recovery on Friday, snapping a recent trend of losses. The BSE Sensex rose by 965 points to settle at 78,152, while the NSE Nifty gained 262 points to finish at 24,334. This performance marks the single largest daily gain for both indices in over four weeks, helping investors recover some ground after a volatile week.
Heavyweight Stocks Drive Gains
The market’s upward move was primarily led by gains in large-cap stocks that carry significant weight in the indices. Reliance Industries shares climbed 2.6% following official disclosures that the promoter group increased its stake in the company to 50.48% as of the end of June. HDFC Bank also supported the benchmark indices with a 1.4% gain. Despite the rise in headline indices, the broader market showed signs of underlying weakness, as the number of declining stocks outnumbered those that advanced on the national exchanges.
Earnings and Sectoral Performance
Financial services emerged as a key performing sector, with the Nifty Financial Services index rising 1.3%. Jio Financial Services reported a strong financial result for the June quarter, with net profit surging 156% year-on-year to ₹830 crore. Following this update, the stock gained 3.1%. Technology stocks also received support from cooling inflation data out of the United States, which helped reduce concerns regarding potential interest rate hikes by global central banks.
Global Cues and Potential Risks
Investor sentiment was largely lifted by positive global cues, specifically the easing of inflation fears in the US. However, external pressures remain a factor for the domestic market. Brent crude oil prices rose 1.14% to reach $85.5 per barrel, driven by ongoing geopolitical tensions in West Asia. Higher oil prices can increase import costs for India and exert pressure on the rupee. While market sentiment improved on Friday, the weekly market capitalization of BSE-listed firms recorded a decline of ₹83,000 crore, highlighting the impact of the earlier volatility.
Looking ahead, market participants will likely monitor the 24,500 to 24,550 range on the Nifty, which acts as a key resistance level. Sustained trading above this zone may dictate the next trend for the indices, while support levels are currently positioned near the 24,150 to 24,200 range. The primary monitorable for the coming weeks will be the ongoing corporate earnings season, which will provide clearer signals on demand trends and margin stability across sectors.