Indian equity markets closed higher on Friday, completing the final trading session of the week on a firm note despite geopolitical tensions between the United States and Iran.
The BSE Sensex rose 316.57 points, or 0.38 percent, to close at 82,814.71. The Nifty-50 advanced 116.90 points, or 0.46 percent, to settle at 25,571. After opening on a weak note, the market witnessed buying at lower levels, enabling the indices to recover bly.
Support from PSU Banks and Metals
The rally was primarily driven by buying in PSU bank and metal stocks. Gains in heavyweight counters such as L&T and Reliance Industries also supported the Sensex and Nifty. However, pressure in the IT sector limited the upside. Ponmudi R, CEO of Enrich Money, said that buying in power, metals, government banks, capital goods, FMCG and financial stocks improved overall market sentiment.
Intraday Movement
The BSE Sensex opened at 82,272 and traded in a flat range during early trade. By the afternoon, it had risen by as much as 600 points before closing at 82,814.71. Similarly, the Nifty-50 opened at 25,406 and touched an intraday high of 25,663 before ending the session at 25,571. Investors bought shares of companies at lower price levels through the day, offsetting initial weakness.
Top Gainers and Losers
Among Sensex constituents, NTPC, L&T, HUL, Power Grid and Tata Steel were the top gainers, with advances of up to 2.6 percent. On the other hand, Tech Mahindra, Eternal, Infosys, HCL Tech and Bharti Airtel declined, falling by up to 1.7 percent.
In the broader market, the Nifty Midcap 100 closed 0.48 percent higher, while the Nifty Smallcap index recorded a marginal decline of 0.11 percent. On a sectoral basis, the Nifty PSU Bank and Metal indices gained more than 1 percent each. FMCG, Private Bank, Oil and Gas and Auto sectors also closed higher. The Nifty IT index declined by about 1 percent.
Global Markets
Markets across the Asia-Pacific region traded mixed on Friday morning as investors assessed rising geopolitical tensions between the United States and Iran. Japan’s Nikkei 225 fell more than 1 percent, while South Korea’s Kospi rose over 1 percent. Mainland China markets remained closed for the Lunar New Year holidays.
US stock indices also ended lower amid rising tensions in the Middle East, prompting investors to move away from risk assets. US President Donald Trump said Iran has 10 to 15 days to reach an agreement on its nuclear programme, during which he will decide whether to pursue military action. The S&P 500 and Dow Jones Industrial Average closed down 0.28 percent and 0.54 percent, respectively, while the Nasdaq Composite declined 0.31 percent.
