Sensex ends 315 points higher, Nifty above 23,100; Axis Bank up 3%

Benchmark indices ended higher on Friday, recovering partially after Thursday's sharp sell-off, but the rebound was not enough to prevent another weekly decline. Persistent concerns over elevated crude oil prices, high bond yields and foreign fund outflows kept gains in check.

The Sensex closed at 73,895.74, up 315.20 points or 0.43%, while the Nifty 50 gained 77.40 points or 0.34% to end at 23,140.50.

Despite Friday's recovery, both indices ended lower for the seventh straight week. The Nifty fell around 0.9% during the week, while the Sensex declined 0.5%.

The broader market saw a mixed trend. The Nifty 100 rose 0.38%, while the Nifty 200 gained 0.27% and Nifty 500 advanced 0.23%.

The Nifty Midcap 50 fell 0.25% and Midcap 100 declined 0.14%, while the Nifty Smallcap 100 gained 0.15%. India VIX fell 4% to 12.18.

FINANCIAL, AUTO STOCKS SUPPORT MARKETS

Financial and auto stocks helped the benchmarks recover after Thursday's sell-off.

Axis Bank was the top Sensex gainer, rising 2.82%, followed by M&M, which gained 2.24%. Asian Paints rose 1.93%, Bajaj Finance gained 1.21%, HCLTech advanced 1.17% and Titan rose 1.01%.

Other notable gainers included IndiGo, L&T, HDFC Bank, Power Grid and Reliance Industries.

On the other hand, Trent was the biggest Sensex loser, falling 1.41%. Infosys declined 0.81%, Tech Mahindra fell 0.06%, ICICI Bank dropped 0.41% and Kotak Mahindra Bank declined 0.47%.

SECTORAL PERFORMANCE

The Nifty Auto index rose 0.89%, while Realty gained 0.92%. Consumer Durables advanced 0.95%, Financial Services 25/50 rose 0.33%, FMCG gained 0.40% and Private Bank increased 0.45%.

Metal rose 0.35%, PSU Bank gained 0.28% and Chemicals advanced 0.23%.

IT was among the weaker sectors, falling 0.17%. Media declined 0.23%, Pharma fell 0.10% and Healthcare dropped 0.47%.

The Nifty MidSmall Financial Services index fell 0.52%, while the Financial Services Ex-Bank index declined 0.07%.

CRUDE REMAINS A KEY CONCERN

Brent crude was trading at around $105.39 a barrel, down 1.14%, while WTI crude fell 1.85% to $92.86.

Despite Friday's decline, crude remains at elevated levels and continues to be a key risk for Indian markets because of its impact on inflation, the import bill and corporate profitability.

Friday's gains came after the Nifty and Sensex recorded their steepest single-session fall in 10 weeks on Thursday. The previous session's sell-off was driven by rising crude prices, higher global bond yields and concerns over the proposed IRDAI changes to insurance commission structures.

Financial stocks faced particularly heavy selling during the week, while IT stocks also remained under pressure.

The Nifty Financial Services index fell 1.6% during the week, while the Nifty IT index declined 2.4%, marking their fourth consecutive weekly losses. The broader Nifty Midcap 100 and Smallcap 100 fell 2.1% and 0.9%, respectively, during the week.

The Nifty's seven-week losing streak is its longest in six years. Before the current streak, the index had recorded seven or more consecutive weekly losses only four times in the past 25 years — in 2020, 2008 and twice in 2001.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Volatile crude and bond yields at elevated levels kept the market recovery capped. Concerns over inflation, foreign fund outflows and pressure on EM currencies remained intact. Selective bargain hunting after the recent pullback helped the market retain a positive bias, though gains remained confined to a narrow trading range.

"The ability of benchmark indices to sustain above the psychologically important 23,000 level reflects domestic resilience and support from strong domestic liquidity. While elevated oil prices and global yields may continue to temper risk appetite in the near term, improving valuations and resilient domestic growth prospects are encouraging selective accumulation, helping the market absorb external pressures more effectively," he added.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)