Sensex, Nifty End Higher as Crude Prices Ease, US-Iran Pact Hopes Lift Sentiment
Mumbai — Indian equity markets ended higher Friday as easing crude oil prices and reports of progress toward a phased U.S.-Iran agreement helped improve investor sentiment.
The Sensex gained 315 points, or 0.43 percent, to close at 73,895, while the Nifty rose 77 points, or 0.34 percent, to settle at 23,140.
The Nifty Bank index added 389 points, or 0.26 percent, to close at 55,762.
Indian equities rebounded after Thursday’s sharp decline as reports of movement toward a phased agreement between the United States and Iran supported market sentiment.
Brent crude slipped toward $105.60 a barrel during the session after gaining more than 7 percent over the previous two trading days. West Texas Intermediate crude traded below $94 a barrel amid expectations that Middle East oil flows could improve as discussions reportedly took place on the sidelines of the United Nations General Assembly.
However, U.S. Treasury yields above 5 percent, continued foreign investor selling and broader global macroeconomic risks remained concerns for the market.
Broader indices were mixed. The Nifty Midcap 100 fell 0.23 percent, while the NSE Smallcap 100 gained 0.17 percent. The Nifty Next 50 rose 0.39 percent.
Most sectoral indices on the NSE ended higher, with IT, media, pharma and healthcare among the exceptions.
The Nifty Auto index gained 0.76 percent, while consumer durables advanced 0.87 percent and realty rose 0.70 percent.
The rupee remained volatile during the week, trading in a range of 95.57 to 95.97 against the U.S. dollar before ending largely unchanged near 95.85.
Movements in crude oil and gold prices, along with a stronger dollar, limited the rupee’s ability to sustain gains.
Analysts said the market rebound appeared to be driven more by selective value buying than by a broad improvement in investor risk appetite.
The difference in performance between large-cap stocks and weaker mid- and small-cap shares also indicated that investors remained selective.
Market participants said the sustainability of the rebound would depend on crude oil prices stabilizing, global bond yields easing and foreign investor selling pressure moderating. (Source: IANS)
