Nifty Extends Gains for Third Straight Session; Broader Market Outperforms

The domestic equity market witnessed a cautious but positive session on Friday as investors balanced easing crude oil prices, bargain buying and global uncertainties. The benchmark indices moved in a narrow range during the first half of the session before gaining momentum in the afternoon.

The Nifty 50 opened at 23,334.70 and remained volatile in early trade, finding support near the 23,300 level. As buying interest strengthened, the index moved higher and touched an intraday high of 23,389.15 before giving up some gains towards the closing bell.

The Nifty 50 finally settled at 23,346.40, gaining 75.80 points or 0.33%, marking its third consecutive session of gains. However, the Sensex ended slightly lower, declining 19.63 points to close at 74,294.96.

The Bank Nifty also witnessed a positive trend and outperformed the broader benchmarks, ending 0.54% higher. Meanwhile, volatility eased significantly, with India VIX declining nearly 7.5% to around 11.3 levels.

Crude Oil Prices Ease; Brent Trades Near $102

Lower crude oil prices provided support to domestic equities during the session. Brent crude declined around 1.3% to $102 per barrel as expectations of alternative supply routes helped offset concerns surrounding geopolitical tensions in the Middle East.

The decline in crude prices offered some relief to markets, particularly as investors continued to monitor inflation risks and currency movements.

Broader Market Continues Strong Performance

The broader market continued to outperform the benchmark indices, reflecting improved participation from midcap and smallcap stocks.

The Nifty Midcap 100 index gained 1.23%, while the Nifty Smallcap 100 index surged 1.77%, extending their recent recovery.

Market breadth remained positive, with a larger number of stocks closing higher compared to declining stocks, indicating broad-based buying interest across segments.

Nifty Metal Leads Sectoral Gains; IT Remains Under Pressure

Sector-wise performance remained mixed, with 8 out of 11 major sectoral indices ending in positive territory.

The Nifty Metal index emerged as the top sectoral performer, rising 1.51% and extending gains for the third consecutive trading session. Eleven out of 15 constituents of the index closed higher, supported by strength in metal stocks.

On the other hand, the Nifty IT index witnessed selling pressure and declined 1.03%. The index slipped to a two-month low, with six out of ten constituents ending the session in negative territory.

Rupee Ends Lower on Weekly Basis

The Indian rupee ended the week on a weaker note, impacted by expectations of higher global interest rates and elevated crude oil prices.

The rupee closed at ₹95.8750 per US dollar on Friday, recovering marginally during the session but registering a weekly decline of around 0.3%.

Market participants are closely watching the ₹96 per dollar level, which remains an important support zone. Any further weakness in the currency could invite possible intervention from the Reserve Bank of India.

The rupee remained under pressure following rate hikes by major global central banks, including the US Federal Reserve and the Bank of Japan. However, the recent decline in crude oil prices provided some relief.

European Markets Witness Selling Pressure

European equity markets traded lower on Friday as investors remained cautious following recent global interest rate developments and geopolitical uncertainties.

Germany’s DAX declined 0.83% to 25,520.42, while the UK’s FTSE 100 slipped 0.71% to 10,739.04. France’s CAC 40 also remained under pressure, falling 0.80% to 8,121.55.

The weakness across European markets reflected cautious investor sentiment amid concerns surrounding global economic growth and monetary policy outlook.

US Futures Edge Higher Ahead of Market Opening

US stock futures traded slightly higher on Friday, indicating a cautious start for Wall Street.

Dow Jones futures gained 0.05% to 52,244, while S&P 500 futures advanced 0.13% to 7,717.50. Nasdaq 100 futures outperformed, rising 0.35% to 29,848.50, supported by strength in technology stocks.

Investors remained focused on global market movements, interest rate expectations and upcoming economic developments following recent actions by major central banks.