The NSE’s Nifty 50 rose 261.55 points, or 1.1%, to close at 24,334.3, while the BSE Sensex gained 964.58 points, or 1.25%, to end at 78,151.45 on Friday. Indian markets remained resilient despite a sell-off in Asian markets, driven by the lack of AI play and positive earnings expectations.
The Nifty IT index rose 1.75%, with Bank Nifty gaining 1.6% and the Auto index climbing 1.2%. The Indian market's strength was attributed to better-than-expected earnings in the IT sector and anticipation of robust results from major banks like HDFC, ICICI, Kotak, and Axis, which are set to announce their earnings on Saturday.
Elsewhere in Asia, markets experienced significant declines, with Japan falling 4.03%, Hong Kong declining 1.8%, China losing 3.05%, and Taiwan dropping 6.5%. South Korean markets were closed on Friday but had fallen 6.4% at Thursday’s close. In contrast, the Nifty advanced 0.5% and the Sensex gained nearly 0.8% over the week, buoyed by a rebound in oil prices amid fresh tensions in West Asia.
“Our markets were insulated from the Asian selling due to the lack of AI play.”
Sham Chandak, head of institutional equities at Elios Financial Services
Brent crude futures traded at $86 a barrel on Friday evening, up from $76 last week due to renewed tensions involving the Strait of Hormuz, a key oil transit route. Technical and derivative indicators suggest continued gains for Indian markets next week, with options data indicating strong support and resistance levels.
Broader markets underperformed the benchmarks, with the Nifty Midcap 150 falling 0.4% and the Nifty Smallcap 250 declining 0.6% on Friday. For the week, these indices lost 0.9% and 0.6%, respectively. Foreign portfolio investors were net sellers of shares worth 376 crore, while domestic institutional investors were net buyers of shares worth 1,018 crore.
“With the shaky AI trend trading globally, Indian IT services stocks have taken a breather and are partially aided by better-than-expected earnings.”
Sham Chandak, head of institutional equities at Elios Financial Services
Background
Indian stock markets have shown resilience in the face of global uncertainties, often buoyed by domestic factors such as corporate earnings and economic indicators. The current market performance highlights the decoupling of Indian markets from broader Asian trends, particularly in the context of AI-driven volatility.
Looking ahead, market participants will closely watch the upcoming earnings announcements from major banks and monitor geopolitical developments that could impact oil prices and market sentiment.
