Indian stock benchmarks extend gains for the third straight session, with Sensex and Nifty posting modest advances in early Friday trade. The rally persists amid a weakening rupee, climbing oil prices, and sharp declines in Asian markets.
Key Index Movements
Sensex surges 300 points to 75,720, while Nifty 50 climbs 88 points to 23,779. Market volatility eases as India VIX drops 1% to 18.42.
Top performers on Sensex include Adani Ports, Infosys, TCS, Power Grid, HCL Tech, Tech Mahindra, and Maruti Suzuki, each rising up to 2%. Decliners feature State Bank of India, Asian Paints, UltraTech Cement, and Reliance Industries, down as much as 2%.
Optimism spreads across segments, with Nifty Midcap 100 and Nifty Smallcap 100 opening higher. Nifty IT leads sectoral gains at over 1%, while Nifty PSU Bank slips 0.5%. On the NSE, 1,050 stocks advance against 1,276 decliners, with 116 unchanged.
Analyst Perspectives
Following Thursday’s sharp 789-point Sensex rally, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, attributes the move to short covering amid heavy FII short positions. “Rumours circulate of measures to support the rupee and draw capital inflows, though clarity awaits,” he notes.
Vijayakumar views the government’s recent petrol and diesel price hike of Rs 3 per litre and CNG by Rs 2 per kg as a cautious step to avoid inflation spikes, calling it a “welcome development” for markets.
He highlights key trends: strong reactions to Q4 earnings, with double-digit surges for solid results and crashes for weak ones; ongoing IT sector softness contrasted by pharmaceutical resilience amid challenges.
Rupee Weakens Further
The rupee slides 29 paise to 95.93 against the US dollar, approaching a record low of 96. Jateen Trivedi, VP Research Analyst for Commodities and Currency at LKP Securities, expects support if policy actions boost foreign investment. “Near-term range: 95.25–96.00, despite import pressures and global risks,” he forecasts.
FIIs Turn Buyers
Foreign institutional investors end a seven-session selling streak, netting purchases of Rs 187 crore in Indian equities on Thursday, per NSE data.
Oil Prices Climb
Brent crude rises over 1% to $107 per barrel, with WTI crude up similarly to $102. Prices hover above $100 following Middle East tensions earlier this year.
Global Cues Mixed
Asian markets tumble: South Korea’s Kospi plunges over 3%, Japan’s Nikkei drops more than 1%, and Hong Kong’s Hang Seng falls over 1%, though China’s Shanghai Composite edges higher.
European indices and Wall Street closed positively Thursday, but Dow Jones futures point to a subdued US open.
