Indian stock markets rebounded on Friday following a sharp drop the previous day, with benchmark indices BSE Sensex and Nifty50 showing strong upward movement. As traders adjusted their positions during the monthly derivatives expiry, the indices made a significant recovery, led by gains in key sectors like pharmaceuticals, telecom, and metal stocks.
Market Overview: Sensex and Nifty50 Surge
At 11:05 AM on Friday, the BSE Sensex was trading at 79,752.69, up 709 points or 0.90%, while the Nifty50 was at 24,115.95, gaining 202 points or 0.84%. This surge comes after a sharp decline the day before, marking the biggest drop in nearly two months.
The market sentiment was largely positive as traders focused on monthly derivatives expiry adjustments. The indices rallied back, showing resilience after Thursday’s decline, which was attributed to profit-taking in IT stocks and position adjustments.
“Strong resistance remains at the 24,350-24,360 level for Nifty50,” noted Hrishikesh Yedve of Asit C. Mehta Investment Intermediates, referring to the technical resistance levels that traders will be watching for further movement in the market.
Sectoral Performance: Pharma and Telecom Stocks Lead
Among the Sensex components, Sun Pharma and Bharti Airtel were standout performers, both advancing by around 3%. Other major gainers included Mahindra & Mahindra (M&M), Reliance Industries, Larsen & Toubro (L&T), Adani Ports, and JSW Steel, all of which gained approximately 2%.
On the other hand, Power Grid, IndusInd Bank, and State Bank of India (SBI) faced declines during the trading session. Despite these losses, the overall trend remained positive across most sectors, with Nifty Media leading the charge with a 2.1% gain. Other sectors like Nifty Pharma, Healthcare, Banking, Auto, Financials, IT, and Oil & Gas also saw upticks of up to 0.5%.
Market Capitalization and Foreign Investment Trends
As the market surged, the total market value of BSE-listed companies increased by Rs 2.27 lakh crore, bringing the total market capitalization to Rs 445.54 lakh crore, as reported by Economic Times.
Foreign Institutional Investors (FIIs) had been net sellers on November 28, offloading equities worth Rs 11,756 crore, while Domestic Institutional Investors (DIIs) supported the market by purchasing equities valued at Rs 8,718 crore. This mixed foreign and domestic investment trend highlights the continued volatility in global markets, especially amid concerns over inflation and global economic growth.
Global Market Dynamics: Asian Markets Decline
While Indian markets showed resilience, Asian markets declined on Friday, reflecting broader global concerns. The MSCI Asia-Pacific Index, excluding Japan, dropped by 0.3%, leading to a 0.5% weekly decline. The Japanese yen was heading towards its strongest weekly performance in four months, adding another layer of complexity to market movements in the region.
Despite these global trends, India’s strong market performance was largely driven by domestic factors, with sectoral rallies providing a boost.
Oil Prices and Currency Movements
Oil prices showed a mixed performance on Friday amid concerns over potential supply risks. Brent Crude Futures were priced at $73.21 per barrel, while US WTI Crude stood at $69.10. These fluctuations in oil prices are largely tied to market uncertainties, including geopolitical tensions and potential production cuts from major oil-producing countries.
The Indian rupee weakened slightly by 2 paise to 84.49 against the US dollar in early trading, reflecting the pressure on emerging market currencies. The Dollar Index fell by 0.2% to 105.83, suggesting some dollar weakness in the global currency market.
Looking Ahead: Market Sentiment and Economic Outlook
With the market showing signs of recovery, the outlook for Indian equities remains cautiously optimistic. The key resistance level of 24,350-24,360 for Nifty50 will be a crucial point to watch in the coming sessions. If the indices manage to break through this level, further gains could follow, although volatility is expected as global uncertainties persist.
The National Retail Federation’s (NRF) forecast for holiday spending growth, along with improved consumer sentiment in India, could provide positive catalysts for the market in the short term. However, investors will need to keep an eye on global economic indicators, oil price movements, and domestic inflation levels, which could affect market trends in the weeks ahead.
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