Indian stock markets staged a strong recovery on Friday afternoon, reversing early losses to trade significantly higher. The benchmark Sensex surged 729.46 points or 0.88 per cent to 83,226.56 at 12.31 PM, while the Nifty climbed 191.80 points or 0.76 per cent to 25,441.90.

This upward momentum comes after a weak start, with markets opening lower for the fifth consecutive session due to geopolitical tensions and foreign institutional investor (FII) selling. The Sensex had opened at 82,244.25, down from its previous close of 82,497.10.

The market breadth remained positive, with 2,284 stocks advancing against 1,529 declines on the BSE. 174 stocks hit 52-week highs, while 50 touched 52-week lows. 292 stocks reached the upper circuit limit, and 222 hit the lower circuit.

Top gainers on the NSE at 12:30 PM included Infosys (3.03 per cent), Tech Mahindra (2.61 per cent), Tata Motors (2.39 per cent), Sun Pharma (2.03 per cent), and Titan (2.03 per cent). On the flip side, Cipla (-1.42 per cent), Hero MotoCorp (-1.33 per cent), Shriram Finance (-1.13 per cent), BPCL (-1.10 per cent), and Apollo Hospitals (-0.86 per cent) were the top losers.

Sectoral indices also showed strength, with the Nifty Bank up 453.30 points or 0.87 per cent at 52,298.50, and Nifty Financial Services gaining 135.35 points or 0.57 per cent to 24,016.90. The Nifty Next 50 and Nifty Midcap Select indices rose 0.31 per cent and 0.26 per cent respectively.

The market’s reversal comes despite ongoing concerns about the Iran-Israel conflict and its potential impact on crude oil prices, which could affect inflation and India’s fiscal deficit. Earlier in the day, experts had pointed to global factors, including FII withdrawals to cheaper markets like Hong Kong, as reasons for the initial weakness.

Investors are now closely watching US job data and further geopolitical developments for cues on market direction. The sharp intraday turnaround suggests a possible change in sentiment, although it remains to be seen if this momentum will sustain until market close at 3.30 PM.

As trading continues, market participants will be keenly observing whether key support levels can be maintained and if the recovery can offset the losses from previous sessions.

Published on October 4, 2024