Indian stock market update: What’s driving the recent rise and sector shifts?

New Delhi: Indian stock markets opened flat on Friday but soon moved higher, supported by positive global sentiment. Easing geopolitical tensions in the Middle East and signs of a potential trade deal between the US and India bolstered investor confidence.

The Sensex rose 148 points, or 0.18 per cent, to trade at 82,320, while the Nifty gained 40 points, or 0.16 per cent, to 25,221 shortly after the opening bell.

“Though yesterday's push higher in the second half failed to clear the week's high, it did serve to invalidate the bearish bias of the evening star candlestick pattern,” market experts said. They added that the market could aim for 25,460 in the coming days, noting that the inability to rise above 25,215 or fall below 25,113 could keep the trend sideways without immediately testing 24,982.

In the broader market, the Nifty Midcap 100 index inched up 0.18 per cent, while the Nifty Smallcap 100 advanced 0.28 per cent, signalling healthy participation from mid- and small-cap stocks.

Among sectoral indices, Nifty Metal was the worst performer, slipping 1.4 per cent, followed by losses in Auto, Pharma, and Healthcare stocks. In contrast, Banking, Energy, FMCG, IT, Consumer Durables, Oil & Gas, and Realty sectors were trading with gains.

On the Sensex, top gainers included Power Grid, State Bank of India, NTPC, Adani Ports, and Asian Paints, while Tata Steel, TCS, Bajaj Finance, M&M, and HCL Tech traded in the red.

“The overall market environment is turning positive. Globally, the GAZA peace accord signals the end to the conflict and reduction of geopolitical risk from the region,” analysts said. “Domestically, there are indications of a trade deal between the US and India with India 'rebalancing' its oil purchases.”

Analysts noted that these developments, along with Foreign Institutional Investors turning net buyers in the cash market over the past three trading days, bode well for the market in the near term.

IANS