Sensex Rebounds 517 Points; Nifty IT Leads as Crude Concerns Persist

Benchmark indices in India staged a recovery on Friday, ending a run of three straight daily losses. The Sensex and Nifty 50 both opened in positive territory and, at their best levels during the session, rose by more than 500 points.

The Sensex started trade at 73,665.64, rising 416.25 points or 0.57 percent from its previous close of 73,249.39. The Nifty 50 opened 54.55 points, or 0.24 percent, higher at 22,742.20, after closing the previous day at 22,687.65.

Later in the session, the Sensex reached a high of 73,766.51, up 517.12 points or 0.70 percent. The Nifty 50 touched 22,787.25, a gain of nearly 100 points or 0.43 percent.

Mid-cap and small-cap stocks, however, came under pressure. The Nifty Smallcap 100 index shed 2 percent, while the Nifty Midcap 100 index fell 1.3 percent.

Sector performance was mixed. The Nifty IT index emerged as the only sectoral gainer, climbing 1.8 percent. Metal, consumer durables, realty, auto, PSU bank and media indices were among the worst performers.

The rupee opened 3 paise stronger at 94.79 against the US dollar, compared with Thursday's close of 94.82.

Global cues remained cautious. Asian markets slipped, and US stocks largely ended lower amid worries over AI investment and elevated crude prices.

Market analysts described Brent crude's rise toward 114 dollars as a significant negative for the economy and markets. On the other hand, the sharp decline of up to 4.96 percent in the US 10-year yield and the rupee's rise to 94.70 were viewed as encouraging signs that may slow foreign investor selling.

Liquidity was another focus. Analysts said over 3 lakh crore rupees of the 3.73 lakh crore rupees raised through the Jio Platforms IPO is likely to re-enter the system after share allotment by next Monday, a development that could push the market upward next week.

On the technical front, the Nifty's RSI is at 43.98, above its average of 38.86, while the put-call ratio dropped to 0.82. Support is placed at 22,600-22,650, and resistance at 22,900-23,000.

On Thursday, foreign institutional investors were net sellers to the tune of 3,459 crore rupees. Domestic institutional investors, however, net bought shares worth 2,891 crore rupees, providing support to the market.

In the US, the Nasdaq ended 2.6 percent lower as AI-based technology stocks faced selling pressure. Asian markets also began the day lower, with Japan's Nikkei down about 1.7 percent.