Markets rebound as banking, metal stocks drive recovery

Stock markets rebounded on Friday, with the benchmark Sensex closing higher by 316 points after heavy buying in banking and metal shares, amid optimism over progress on a trade deal and India’s participation in Pax Silica.

The 30-share BSE Sensex climbed 316.57 points, or 0.38 per cent, to settle at 82,814.71. During the day, the benchmark appreciated by 633.94 points, or 0.76 per cent, to hit an intraday high of 83,132.08.

The 50-share NSE Nifty advanced 116.90 points, or 0.46 per cent, to close at 25,571.25, as 36 of its components ended in the positive zone and 14 in the red. In the intraday session, it jumped by 209.2 points, or 0.82 per cent, to hit a high of 25,663.55.

The Sensex, on Thursday, tanked 1,236.11 points, and the NSE Nifty slumped 365 points to close near 25,450, following across-the-board selling by investors amid growing geopolitical concerns.

NTPC, Larsen & Toubro, Hindustan Unilever, PowerGrid, Tata Steel, Kotak Mahindra Bank, Bharat Electronics Ltd, Bajaj Finance, Titan, Maruti Suzuki India, Axis Bank and IndiGo were the major gainers on Friday among Sensex stocks.

On the other hand, Tech Mahindra, Infosys, Eternal, HCL Technologies, Bharti Airtel, HDFC Bank, Mahindra & Mahindra and Adani Ports ended with losses.

“Indian equities rebounded after yesterday’s sharp correction, led by strong buying in large caps as investors favoured their better risk-reward over premium-valued midcaps.

Sentiment improved on clearer trade-agreement signals and India’s entry into Pax Silica, which is expected to strengthen supply-chain security in AI, semiconductors, and critical minerals,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

He added that banking and metal stocks drove the recovery, while IT lagged. Volatility stayed elevated, with the India VIX spiking even as geopolitical tensions still linger.

“Softer inflation data from Japan supported expectations of accommodative global policy. Structurally, markets remain constructive, though near-term moves are likely to stay flow-driven amid global uncertainties,” Nair said.

Broader indices ended higher, with the BSE Midcap Select Index rising 0.45 per cent, while the Smallcap Select Index edged up by 0.07 per cent.

Among sectoral indices, Power rose the most by 1.91 per cent, followed by PSU Bank by 1.83 per cent, Utilities by 1.53 per cent, Capital Goods by 1.51 per cent, Industrials and Metal by 1.27 per cent each, and Bankex by 0.77 per cent.Information Technology and Focused IT were the only laggards.

A total of 2,265 stocks declined, while 1,917 advanced and 167 remained unchanged on the BSE.