After a weak start and a sharp fall in the previous session, the country’s stock market staged a measured recovery on Friday, with benchmark indices closing in positive territory.
Shaking off the decline, the country's stock market bounced back on Friday. In the last trading session, both benchmark indices had fallen by more than 1 per cent. Despite a weak start on Friday, the Sensex and Nifty50 began rising as the day progressed.
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In this week's final trading session on Friday, the Sensex rose 316 points, or 0.38 per cent, and the Nifty50 increased by 0.46 per cent, or 117 points. Following this growth, the Nifty stands at 25,571 points and the Sensex at 82,814 points.
Sensex and Nifty50 close higher
While the two benchmark indices grew, the small-cap index declined on Friday. The BSE 250 Small Cap Index fell by 0.19 per cent. However, the BSE 150 Mid Cap Index rose by 0.44 per cent. Most sectoral indices on the National Stock Exchange registered gains. Nifty PSU Bank (1.68 per cent) rose the most. Multiple sectoral indices in Nifty, including Energy, Metal, India Defence, Infrastructure, and FMCG, posted significant gains. However, the decline in Nifty IT continued on this day as well. This marks all trading sessions of the week in which the Nifty IT sectoral index lost points.
Sectoral indices show mixed trends
Vinod Nair, Head of Research at Geojit Investments, said Indian stock markets have bounced back after the previous day's sharp correction. Strong buying in large-cap shares is the main reason for this recovery. The risk-return ratio in large caps appears more attractive to investors compared to mid-caps with premium valuations.
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He said that clear messages regarding trade agreements and India’s entry into Pax Silica have lifted market sentiment. According to him, this is expected to enhance supply chain security in areas such as AI, semiconductors, and critical minerals.
Nair cautioned, however, that it would be premature to say market volatility has completely subsided. Geopolitical tensions have not fully eased, he noted, and their impact is reflected in the India VIX. In the short term, he added, markets are likely to remain largely flow-dependent amid ongoing global uncertainties.
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