Indian equity benchmarks showed significant gains on Friday, following the positive trend in global markets, despite ongoing geopolitical tensions and worries about the closure of the Strait of Hormuz. The Sensex rose by 0.82% or 630 points to reach an intra-day high of 77,261, while the Nifty increased by 0.85% or 203 points to trade at 23,978.
In early trade, the Sensex started at 77,121, up by 0.64% or 489 points, and the Nifty began the session at 23,880, gaining 0.44% or 100 points. Key sectors such as banking, realty, auto, energy, and metal stocks performed well, while the IT sector experienced a decline. Notable losers included Infosys, Sun Pharma, Tech Mahindra, HCL Tech, and HUL.
Market analysts noted that the equity market’s reaction to recent events in comparison to the energy market’s volatility has been relatively mild. This suggests a belief that energy prices might stabilize in the near future. Analysts predict a gradual decline in energy prices over the next three to six months, which could positively impact equities.
Despite potential minor effects on growth and a slight rise in inflation, the overall outlook for equities remains favorable, particularly with a strong upcoming earnings season. Globally, Asian markets also saw gains, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI all trading in positive territory. Wall Street in the US closed positively, with the S&P 500 and Nasdaq both recording gains.
Crude oil prices experienced an increase, with Brent crude climbing by 1.13% to $97.01 per barrel, and US WTI crude rising by 1.39% to $99.24.
