The Indian equity markets saw slight gains early on Friday, following positive global cues and optimism surrounding US-Iran peace talks. The Sensex rose by 307 points, reaching 75,491, while the Nifty gained 89 points, reaching 23,744. Notably, the Nifty Midcap 100 added 0.06%, while the Nifty Smallcap 100 lost 0.02%.
Sectoral indices on NSE displayed mixed trends, with Nifty PSU bank and Nifty private bank showing gains of 0.53% and 0.75%, respectively. Conversely, Nifty media and realty sectors experienced losses of 0.83% and 0.75%, respectively. Market analysts pointed out that the immediate support for Nifty is around 23,500–23,550, with resistance near 23,850–23,900. For Bank Nifty, support is seen around 53,300–53,500, with resistance near 54,400–54,500.
Market activity is characterized by a pattern of buying on dips and selling on rallies, largely influenced by institutional activities. Positive developments such as Brent crude falling below $105 and the rupee appreciating to 96.20 from 96.96 have been noted by analysts. The broader market sentiment remains optimistic, buoyed by positive quarterly earnings from small and midcap companies.
In the Asia-Pacific region, markets traded higher on Friday, driven by investor optimism regarding diplomatic efforts to secure a peace deal in the Middle East. However, challenges may arise as Tehran reaffirmed its commitment to retaining enriched uranium stockpiles within the country, potentially impacting negotiations with the US. Asian markets reflected this sentiment, with gains in China’s Shanghai index (0.33%) and Shenzhen (1.2%), Japan’s Nikkei (2.29%), Hong Kong’s Hang Seng Index (0.9%), and South Korea’s Kospi (0.17%).
The US markets closed positively, with Nasdaq rising by 0.09%, the S&P 500 by 0.17%, and the Dow Jones by 0.55%. On May 21, foreign institutional investors (FIIs) sold equities worth Rs 1,891 crore, while domestic institutional investors (DIIs) bought equities worth Rs 2,492 crore.
