Sensex, Nifty post solid gains on global optimism and FII inflows

Mumbai: Indian stock markets ended higher on Friday, with benchmark indices Sensex and Nifty rising nearly 1 per cent, supported by easing geopolitical tensions, falling crude oil prices and renewed foreign fund inflows.

The BSE Sensex climbed 504.86 points to close at 78,493.54, while the NSE Nifty gained 156.80 points to settle at 24,353.55. During the session, both indices touched higher intra-day levels before closing with solid gains.

Market sentiment improved after signs of de-escalation in West Asia, including hopes of a diplomatic resolution between the United States and Iran and a reported ceasefire between Israel and Lebanon. These developments reduced concerns over a prolonged spike in oil prices.

Brent crude prices fell over 3 per cent to around USD 96 per barrel, easing pressure on inflation and import costs, which supported equities.

Investor wealth also saw a significant jump, increasing by Rs 4.84 lakh crore on the BSE, reflecting broad-based market gains.

Among Sensex stocks, gains were led by Hindustan Unilever, Power Grid, Reliance Industries, Bharat Electronics, Tech Mahindra and Titan. On the other hand, Sun Pharma, Mahindra & Mahindra, Larsen & Toubro and HCL Tech were among the laggards.

Sectorally, all indices ended in positive territory, with FMCG, capital goods, power, energy and industrial stocks leading the rally.

Midcap and smallcap stocks also performed strongly, with the BSE SmallCap index rising 1.76 per cent and the MidCap index gaining 1.31 per cent.

Foreign Institutional Investors turned net buyers, purchasing equities worth Rs 382.36 crore, further supporting the upward momentum in markets.

Globally, while Asian markets ended mixed, European markets traded higher and US markets had closed in positive territory in the previous session.

On a weekly basis, both Sensex and Nifty recorded gains of over 1 per cent, indicating sustained positive momentum driven by improving global cues and expectations of further developments in ongoing diplomatic talks.

Analysts noted that while optimism remains, markets could continue to react to geopolitical developments, especially the progress of peace talks and movement in crude oil prices.
(With PTI inputs)