CHENNAI: Indian equity markets ended Friday’s session on a firm note, snapping a four-day losing streak as investors returned to risk assets amid supportive global cues and selective buying in heavyweight stocks. The rebound reflected improving sentiment after recent volatility, though underlying caution persisted as markets continued to trade within a broader consolidation range.
The BSE Sensex closed higher by around 450 points, settling near the 84,950 mark, while the Nifty 50 advanced by about half a percent to finish above 25,950. Both indices had spent much of the week under pressure due to profit-taking and global uncertainty, but Friday’s session saw steady gains through the day, aided by positive cues from Asian markets and a calmer global macro backdrop.
Gains were led by banking and financial stocks, which recovered after recent declines and provided strong support to the benchmarks. Select heavyweight stocks in energy, autos and IT also contributed to the upside, helping the indices maintain momentum into the close. Broader markets participated in the rebound, with mid-cap and small-cap stocks showing improved buying interest, indicating a return of risk appetite after days of cautious trading.
Investor sentiment was supported by easing concerns around global interest rates following signs of moderating inflation in the US, which strengthened expectations that major central banks could move towards a more accommodative stance next year, say market analysts.
"Investor sentiment remained steady and constructive, supported by favourable global cues as renewed optimism around further monetary easing by the US Federal Reserve—following lower-than-expected November inflation data—boosted global risk appetite. A recovery in the Indian rupee against the US dollar further added to confidence, leading to broad-based buying through the session. Realty, healthcare, auto, and oil & gas stocks outperformed, closing the day with impressive gains," said investment advisor and CEO of Enrich Money, R Ponmudi.
This improved outlook encouraged foreign institutional investors to step in as net buyers, lending additional support to domestic equities. The rupee’s relatively stable performance against the dollar also helped ease concerns around imported inflation and capital outflows.
Despite the positive close, market participants remained selective, focusing on fundamentally strong stocks rather than engaging in broad-based buying. Volatility levels eased compared with earlier in the week, but traders indicated that key resistance levels on both the Sensex and the Nifty remain crucial for confirming a sustained upward trend. Until those levels are decisively crossed, markets are expected to remain range-bound with intermittent bouts of profit-taking.
In summary, Friday’s session marked a relief rally for Indian equities, driven by supportive global cues, renewed foreign inflows and recovery in key sectors. While the close was encouraging and helped arrest the recent decline, investors are likely to stay cautious in the near term, closely tracking global developments, institutional flows and domestic macro signals for clearer direction.