Stock indices gain 1.3%, mirroring Asian markets

Benchmark stock indices broke their three-day losing streak and gained 1.3%, buoyed by robust Asian market performance and advancing U.S. futures.

Despite opening marginally lower, the indices swiftly moved upwards and sustained momentum throughout the trading session. The S&P BSE Sensex closed at 82,408 points, up 1,046 points, or 1.29%, led by gains in heavy height stocks.

Bharti Airtel gained 3.27%, M&M and PowerGrid gained 2.93% and 2.38%, respectively while Reliance and Nestle surged 2.16% and 1.97% respectively. The NSE Nifty-50 index, too, gained 319% or 1.29% to close at 25,112 points.

“Market sentiment experienced a pronounced bullish shift following President Donald Trump’s announcement that he would determine within the forthcoming two weeks whether the United States would intervene in the Iran-Israel conflict. This geopolitical development provided the catalyst for renewed investor confidence,” said Devarsh Vakil, head of Prime Research, HDFC Securities. “The return of optimistic sentiment to Dalal Street manifested in a comprehensive buying surge, as bulls initiated broad-based accumulation across sectors. This renewed appetite for risk assets propelled both flagship equity benchmarks — the Nifty 50 and Sensex — to rally in excess of 1% during Friday’s trading session, underscoring the market’s renewed vigour and investor conviction,” he added.

Nifty Midcap 100 Index gained by 1.46%, while the Nifty Smallcap 100 Index rose over 1%. Market breadth turned positive after seven days, with advancing stocks sharply outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.67, highest since June 9.

The buying was broad-based, with all sectoral indices ending in the green. Amongst them, realty, PSU banks, metal, and auto sectors were the major outperformers, leading the charge from the front.

All major sectoral indices ended in the green, indicating widespread optimism. Notable gains were seen in metal, PSU bank, realty, power, telecom, and capital goods, with each sectoral index rising between 1% and 2%.