Mumbai, Sep 25: Indian stock markets staged a measured recovery on Friday, with the benchmark Sensex and Nifty ending higher as easing crude oil prices and hopes of a phased US-Iran agreement helped improve investor sentiment.
The Sensex gained 315 points, or 0.43 per cent, to close at 73,895, while the Nifty 50 rose 77 points, or 0.34 per cent, to 23,140. The Nifty Bank index also advanced 0.26 per cent to settle at 55,762.
The rebound came a day after a sharp sell-off in the domestic market. Investors found some relief as crude prices moderated and reports of discussions around a phased US-Iran arrangement raised hopes of improved stability in energy supplies.
Brent crude slipped towards $105.6 a barrel during Friday’s session after rising sharply over the previous two trading sessions, while West Texas Intermediate remained below $94. The movement in crude has become a major factor for Indian markets because sustained high oil prices can increase the country’s import bill and add pressure on inflation.
The possibility of a phased agreement between Washington and Tehran also helped ease some geopolitical concerns. However, investors remained cautious as the situation in the Middle East continues to evolve and any fresh disruption to oil supplies could quickly affect global markets.
The broader market performance was mixed. The Nifty Midcap 100 declined 0.23 per cent, while the Nifty Smallcap 100 gained 0.17 per cent and the Nifty Next 50 rose 0.39 per cent, indicating that the recovery was stronger in the large-cap segment.
Apart from crude prices, elevated US Treasury yields and continued foreign selling remained key concerns for investors. These factors could keep market volatility elevated even as geopolitical developments provide occasional relief.
For India, a sustained decline in crude prices could provide some support to inflation, the trade balance and corporate input costs. At the same time, a stable energy environment could improve visibility for businesses and strengthen investor confidence.
Friday’s market recovery therefore reflected a combination of lower oil prices and improved geopolitical expectations, although investors are likely to continue tracking crude movements, global bond yields, foreign fund flows and developments in the Middle East closely.