Sensex jumps 800 pts, Nifty nears 24,300 as banks, IT lead rally; RIL climbs 2% ahead of Q1
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Indian benchmark indices rallied sharply on Friday, shrugging off weak global cues, as gains in banking and IT stocks lifted sentiment ahead of Reliance Industries' June quarter earnings, slated to be released after market hours.
The BSE Sensex surged as much as 802 points, or 1%, to 77,989, while the NSE Nifty50 climbed 216 points, or 0.89%, to 24,289 in morning trade.
The broader market, however, remained subdued. The Nifty Midcap 100 slipped 0.4%, while the Nifty Smallcap 100 declined 0.6%, indicating that buying was largely concentrated in frontline large-cap stocks.
India VIX, the market's fear gauge, rose over 3% to 13.29, though volatility remained at relatively comfortable levels despite geopolitical uncertainties.
RIL tops Sensex gainers ahead of Q1 results
On the BSE Sensex, 23 of the 30 constituent stocks traded in the green, with Reliance Industries emerging as the top gainer. The stock climbed as much as 2.12% as investors accumulated shares ahead of the company's June quarter results, scheduled to be announced after market hours.
Reliance Industries was followed by Axis Bank (up 1.84%), Hindustan Unilever (1.73%), Infosys (1.71%) and Tech Mahindra (1.64%). Other notable gainers included Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv, HCLTech and Mahindra & Mahindra, which rose between 1.3% and 1.6%.
On the losing side, InterGlobe Aviation (IndiGo) was the biggest laggard, falling 0.64%, followed by UltraTech Cement (-0.43%), Bharti Airtel (-0.42%), Eternal (-0.30%), Maruti Suzuki (-0.22%), Sun Pharma (-0.18%) and NTPC (-0.09%). Tata Steel was largely unchanged.
Among the sectoral indices, Nifty Private Bank gained 1.3%, Nifty Realty rose 1.2%, Nifty IT advanced 1.1%, while Nifty Auto and Nifty Financial Services added nearly 1% each. On the other hand, Nifty Pharma fell 1.4%, Nifty Healthcare declined 1.2%, while Metal, Media and Consumer Durables also traded in the red.
Market likely to remain range-bound, say analysts
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, expects markets to remain range-bound despite Friday's rebound.
"The range-bound structure of the market is likely to continue. The depreciating rupee has weighed on sentiment this week, while weaker-than-expected FCNR(B) deposit mobilisation, amid elevated US bond yields, has made the rupee the worst-performing Asian currency this week, with a depreciation of over 1%. This has also impacted foreign investor flows, with FIIs turning net sellers again after a brief period of buying," he said.
Foreign institutional investors sold equities worth ₹4,206 crore on Thursday, a trend that could keep investors cautious. Vijayakumar added that Reliance Industries' June quarter earnings later on Friday, along with the results of major private sector banks over the weekend, could influence market direction next week.
"Private sector banks are expected to report healthy numbers," he said.
Rajesh Palviya, Head of Research at Axis Direct, said global sentiment has turned less supportive after renewed selling in US semiconductor stocks dragged the Nasdaq lower, while Brent crude hovering around $85 a barrel remains the biggest near-term concern for Indian equities.
"Higher crude prices raise inflation risks, squeeze corporate margins, pressure the fiscal balance and weigh on the rupee, making oil prices a more important market driver than global equity volatility at this stage," Palviya said.
From a technical perspective, Sachin Gupta, Vice President – Research at Choice Broking, said the broader recovery trend remains intact as the Nifty continues to trade above its key short-term moving averages.
"The RSI remains above the neutral 50 mark at 52.15, suggesting underlying bullish momentum, although the flattening MACD histogram indicates that the market may require a fresh trigger for the next directional move. The put-call ratio of 1.07 reflects a mildly bullish undertone, while India VIX remains at relatively comfortable levels despite geopolitical uncertainties," Gupta said.
He expects the Nifty to trade in the 23,800-24,000 range in the near term, with buying likely to emerge on dips and resistance around the 24,000 mark likely to cap immediate gains. Until a decisive breakout emerges, Gupta recommends a stock-specific, buy-on-dips strategy while closely monitoring key support and resistance levels.
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