Indian benchmark indices ended sharply higher on Friday as investors accumulated heavyweight stocks, led by Reliance Industries and major private sector banks, ahead of a crucial round of June quarter earnings. The rally came despite weakness in the broader market, where mid-cap and small-cap shares remained under pressure amid rising geopolitical tensions in West Asia and higher crude oil prices.
Sensex rose 965 points (1.25%) to close at 78,151.45.
Nifty 50 gained 262 points (1.09%) to settle at 24,334.30, reclaiming the 24,300 mark.
Nifty Midcap 100 declined 0.41%.
Nifty Smallcap 100 slipped 0.21%.
Brent crude climbed above $85 a barrel (around ₹7,310), reflecting heightened concerns over the escalating US-Iran conflict.
The day's rally was driven mainly by heavyweight stocks expected to post strong June quarter earnings.
Reliance Industries advanced about 2.5%, while HDFC Bank, ICICI Bank and Axis Bank gained between 1.5 percent and 2.5 percent. Kotak Mahindra Bank also ended firmly higher.
Among Nifty 50 stocks:
Reliance Industries
Jio Financial Services
Tech Mahindra
ICICI Bank
Axis Bank
HDFC Bank
were among the top gainers.
On the losing side were:
Hindalco Industries
Dr Reddy's Laboratories
Wipro
Most major sectoral indices ended in positive territory.
Nifty Private Bank rose 2.12%.
Bank Nifty gained 1.6%.
Nifty IT advanced 1.75%.
Nifty Financial Services climbed 1.31%.
Nifty Auto added 1.24%.
Market participants rotated towards large-cap stocks ahead of a busy earnings weekend.
Reliance Industries was scheduled to announce its June quarter results after market hours on Friday. HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank are set to report earnings on Saturday.
Analysts expect healthy quarterly numbers from the banking sector, supported by robust credit growth, stable asset quality and improving deposit mobilisation.
Brokerages also expect Reliance to deliver resilient earnings, with strength in its oil-to-chemicals and telecom businesses likely to offset relatively weaker performance in retail and upstream operations.
According to market analysts, domestic institutional investors are increasingly shifting money from richly valued mid cap and small cap stocks into relatively attractive large-cap counters, particularly banking and IT companies.
Consumer durable stocks are also witnessing renewed buying interest on expectations of stronger domestic demand during the second half of the financial year.
The market's near-term direction will depend on several factors:
June quarter corporate earnings, especially from banking and financial stocks.
Reliance Industries' earnings and management commentary.
Crude oil prices amid the continuing Middle East conflict.
Global risk sentiment and foreign institutional investor flows.
Domestic inflation and interest rate expectations.
Despite continued foreign investor selling, analysts remain optimistic about India's medium-term equity outlook, supported by strong domestic institutional inflows, improving economic fundamentals, healthy credit growth and a sustained investment cycle.