Stock Markets End Higher, Sensex Ends At 74,596, Nifty Tests 23,134 

The Indian benchmark indices ended higher on Friday as the Sensex ended over 413 points higher at 74,596 and the Nifty ended more than 132 points higher at 23,134 at 3:30 PM.

Previously, during the morning session, the BSE Sensex opened the day above 74,800, rallying more than 600 points, while the NSE Nifty50 started trading around 23,200, climbing a little over 200 points, as of 9:15 AM.

Markets Rebound After Sharp Sell-Off

Domestic markets opened with early gains after witnessing a steep correction on Thursday, as easing crude oil prices and signs of de-escalation in West Asia lifted investor sentiment.

The rebound was broad-based, with strong participation across sectors, signalling a positive undertone following recent volatility.

PSU Banks, IT and Energy Stocks Drive Gains

All major sectoral indices traded in the green, led by PSU bank stocks, which rose more than 2 per cent.

Information technology and energy stocks also attracted buying interest, gaining around 2 per cent and 1.7 per cent, respectively. Auto, metal and consumer durable stocks registered healthy advances, reflecting robust market breadth.

Easing Geopolitical Tensions Boost Sentiment

Investor confidence improved after signals from the United States and Israel pointed towards a possible de-escalation in tensions involving Iran.

Reduced concerns over disruptions to global energy supplies helped restore risk appetite across markets.

Institutional Flows Remain Divergent

Foreign Institutional Investors (FIIs) continued to offload equities in the previous session, selling shares worth Rs 7,558 crore.

Domestic Institutional Investors (DIIs), however, offered support, buying stocks worth Rs 3,864 crore and helping cushion the downside.

Global Cues Mixed; Oil Prices Retreat

Global markets presented a mixed picture. Wall Street ended lower, with the S&P 500 slipping 0.27 per cent and the Nasdaq declining 0.28 per cent.

In Asia, trends remained uneven, with Japan’s Nikkei falling over 3 per cent and Hong Kong’s Hang Seng declining 0.35 per cent, while South Korea’s Kospi gained nearly 1 per cent.

In the commodities market, crude oil prices eased sharply. Brent crude futures dropped 3.39 per cent to $104.96 per barrel, while US WTI crude declined 3.22 per cent to $92.47, reflecting reduced fears of supply disruptions.

Markets Saw Sharpest Fall In Months On Thursday

On Thursday, benchmark indices logged their steepest decline in months, snapping a three-day winning streak.

The Sensex plunged nearly 2,500 points, or 3.26 per cent, to close at 74,207.24, its lowest level since early April 2025. During the session, it fell as much as 2,753.18 points, or 3.58 per cent, to an intra-day low of 73,950.95.

The Nifty also dropped close to 800 points, or 3.26 per cent, to settle at 23,002.15, erasing gains from the previous three sessions, during which the Sensex had risen 2.8 per cent and the Nifty had gained 2.68 per cent.

Oil Spike Triggered Broad-Based Sell-Off

The sharp correction was driven by a surge in global crude oil prices amid escalating attacks on energy infrastructure in West Asia.

Brent crude jumped 6.75 per cent to $114.8 per barrel after Iran targeted key energy facilities in Qatar and Kuwait, heightening fears of supply disruptions. The escalation also included strikes on a Saudi refinery and liquefied natural gas infrastructure.

Analysts noted that the spike in oil prices significantly altered risk perception, particularly for energy-importing economies like India, triggering a broad-based sell-off.

Investor Wealth Takes A Hit

The market downturn led to a sharp erosion in investor wealth. The market capitalisation of BSE-listed companies declined by Rs 12,87,273.89 crore in a single session to Rs 4,26,13,557.95 crore ($4.61 trillion).

Since the escalation of the West Asia conflict on February 28, investors have lost over Rs 37 lakh crore in market value.

Volatility Likely To Persist

Despite the rebound in the pre-open session, market participants remain cautious.

Analysts expect volatility to continue, with crude oil prices, geopolitical developments and foreign fund flows likely to remain key drivers of near-term market direction.