Indian shares experienced a significant rebound on Friday, driven by easing crude oil prices, softer bond yields, and positive global developments, although broader sentiment remains cautious amid ongoing foreign investor sell-off.
Indian shares recovered sharply on Friday after a weak start, as easing crude oil prices and softer bond yields helped steady sentiment. The rebound followed reports of efforts to secure a temporary Iran-US arrangement, which eased some concern about supply disruption and fed into a broader pull-back in global rates pressure. Even so, the main indices still finished lower: the Sensex closed at 74,782 after recovering much of an earlier slump, while the Nifty 50 ended near 23,400 after briefly slipping below 23,250.
The turnaround was led by financial and technology names. HDFC Bank, which had earlier fallen to a 52-week low, erased its losses and then rose further, while Tech Mahindra, HCL Technologies, Eternal, Infosys and Bharat Electronics also firmed. Tata Steel fell, and shares of Reliance Industries, Sun Pharma, Bajaj Finance, NTPC, Power Grid and Larsen & Toubro also traded weaker. Broader indices improved from their worst levels of the day, but mid-cap and small-cap shares still ended slightly in the red.
Market breadth remained negative, a sign that the recovery was selective rather than broad-based. On the National Stock Exchange, declining stocks outnumbered advancers by 2,042 to 1,476, with 120 unchanged. Sectorally, realty and metals were the weakest areas, while information technology and financial services moved into positive territory.
Vinod Nair, head of research at Geojit Investments, said the session reflected pressure from higher crude, concerns about a tighter global rate backdrop and continued foreign investor selling. He added that buying in some beaten-down names, particularly in IT, and a firmer start in Europe helped the market recover from intraday lows. The broader pattern still points to consolidation, but domestic fundamentals and institutional support continue to limit deeper losses, according to Geojit.
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