The Indian stock market made a significant comeback on Friday, joining a global rally following US President Donald Trump’s surprising decision to postpone tariffs for 90 days, excluding those on China. This announcement sparked a surge in Asian markets, leading to their largest rise in over two years. While the US markets had previously reached multi-year highs, the Indian markets had remained closed the day before.
Sensex Surges as Markets Rally
Starting the day with a remarkable gain of nearly 1,000 points, the Sensex soared to a peak of 75,467.33 before settling into a narrower trading range. Ultimately, it closed at 75,157.26, marking an impressive increase of 1,310.11 points or 1.77%—the most significant single-day rise since February 4. Meanwhile, the Nifty surpassed the 22,800 mark, closing at 22,828.55 with a gain of 429.40 points or 1.92%, its best performance since January 2.
- Key Highlights:
- Sensex closed at 75,157.26, up 1.77%.
- Nifty ended at 22,828.55, gaining 1.92%.
- Strong performance across all sectors.
“The Indian stock market finally wrapped up the week positively after a tumultuous period, thanks to the unexpected deferment of US tariffs, which provided some relief amidst ongoing uncertainties,” commented Vinod Nair, head of research at Geojit Financial Services. He emphasized the need to watch the ongoing trade negotiations between India and the US, as they might crucially impact the domestic market’s future.
Positive Global Cues Drive Market Sentiment
“Finishing the week strongly, with a nearly 2% gain, the markets were buoyed by favorable global trends. The US’s decision to delay tariffs—excluding China—mitigated recession fears, enhancing overall market sentiment,” noted Ajit Mishra, Senior Vice President of Research at Religare Broking.
In addition, the India VIX Index fell by 6.17%, settling at 20.11, a sign of declining market volatility. The market breadth was notably positive, with 3,115 stocks gaining compared to 846 that lost ground on the BSE. Broader market indices also performed well, as the BSE Midcap index climbed by 1.84% and the BSE Smallcap index surged by 3.04%. Overall, investors saw their wealth increase by a substantial ₹7.85 lakh crore.
Diverse Investor Activity on the BSE
On Friday, foreign portfolio investors (FPIs) sold shares worth ₹2,519.03 crore, while domestic institutional investors (DIIs) were net buyers, acquiring shares valued at ₹3,759.27 crore, according to provisional data from the BSE.
Sector Performance Overview
All sectoral indices on both the BSE and NSE finished in the positive territory. Notably, metals, commodities, consumer durables, utilities, and power sectors were the standout performers, with gains of up to 4.29%.
Despite this daily success, the benchmarks faced challenges over the week, registering losses for the second consecutive time, with declines of 0.28% and 0.33%, respectively. Broader indices like BSE Midcap and BSE Smallcap also experienced setbacks of 0.58% and 0.15%, marking their third straight week of losses.
In conclusion, while Friday’s trading session brought much-needed optimism to the Indian markets, the focus will remain on international developments and domestic trade negotiations that could further shape market dynamics in the coming weeks.
