Indian Stock Market Sees Significant Gains, Sensex Rises 800 Points Amid Strong Demand in Financial Sector

Indian Equity Benchmark Indices Sensex and Nifty Rebound on Friday

The Indian equity benchmark indices, Sensex and Nifty, rebounded on Friday, buoyed by gains in banking shares and positive global cues. At around 10:30 am, the Sensex rose 831.62 points or 1.09 percent to 77,463.27, while the broader Nifty advanced to 24,013.95, up 238.85 points or 1 percent.

The broader market also saw gains, with the Nifty Smallcap100 and Nifty Midcap100 advancing 1.58 percent and 0.85 percent, respectively. Of the 16 major sectoral indices, 14 traded higher, with pharma and IT being the laggards. The IT index declined 1.5 percent, weighed down by TCS, which fell 2 percent after reporting a 9.7 percent rise in revenue and a 12.2 percent increase in net profit for the March quarter.

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Analysts pointed out that while TCS's fourth-quarter operating performance was in line with expectations, macro uncertainties and softness in BFSI cloud visibility remained concerns. The Sensex and Nifty have gained about 5.5 percent each so far this week and are on track to break a six-week losing streak following reports of a temporary two-week ceasefire agreement between the United States and Iran.

Strong buying in financial stocks supported the market rally, with financials rising 1.6 percent during the session and 8.2 percent for the week. The Nifty PSU Bank index and private bank index gained 1.48 percent and 1.78 percent, respectively.

Positive global cues also aided sentiment, with Asian markets, including South Korea's Kospi, Japan's Nikkei 225, China's SSE Composite, and Hong Kong's Hang Seng, trading higher. US markets had ended in positive territory on Thursday.

The rupee appreciated 10 paise to 92.41 against the US dollar in early trade, marking a gain over its previous close. Forex traders said volatility may persist during the day amid global developments and as the deadline for RBI's directive on banks' overnight positions approaches.

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Market participants are also awaiting the outcome of US-Iran talks scheduled for Saturday. The outcome of the talks will influence crude prices, which in turn will guide market trends. A de-escalation could support markets like India, while any spike in crude may weigh on sentiment.

On Thursday, the Sensex had declined 931.25 points or 1.20 percent to close at 76,631.65, while the Nifty fell 222.25 points or 0.93 percent to settle at 23,775.10.

According to Anand James, Chief Market Strategist at Geojit Investments Limited, the Nifty is expected to resume its upward movement, supported by a flag formation pattern. The 23,822-23,930 zone remains a key hurdle, and a breakout above this range could push the index towards 24,400. Failure to sustain above 23,930 may lead to a decline towards 23,465.