Indian equity benchmarks ended higher on Friday, supported by strong buying in banking heavyweights such as ICICI Bank, HDFC Bank and Axis Bank, although elevated crude oil prices and inflation concerns capped the upside.
The Sensex closed 232 points, or 0.31 percent, higher at 75,415.35, while the Nifty 50 gained 65 points, or 0.27 percent, to settle at 23,719.30.
Broader markets underperformed the benchmarks. The BSE 150 Midcap index edged up 0.11 percent, while the BSE 250 Smallcap index slipped 0.26 percent.
Among Sensex stocks, Trent, Axis Bank, ICICI Bank and Asian Paints emerged as the top gainers. On the losing side were Sun Pharma, ITC and Power Grid Corporation of India.
Banking and financial shares led the rally on the NSE. The Bank Nifty index climbed 1.15 percent, while the Financial Services index rose 1.17 percent. The Private Bank index gained 1.49 percent and the PSU Bank index advanced 0.22 percent.
However, healthcare and media stocks witnessed selling pressure. Nifty Healthcare declined 1.52 percent, Media fell 1.47 percent and Pharma dropped 1.27 percent.
Brent crude surged more than 2 percent to trade above $105 a barrel amid uncertainty surrounding a possible US-Iran peace agreement. Despite diplomatic efforts, both countries are yet to resolve major differences.
The Indian rupee, meanwhile, appreciated sharply by 63 paise to close at 95.73 against the dollar.
Vinod Nair of Geojit Investments said domestic markets traded with a mildly positive bias, supported by buying at lower levels and moderately positive global cues amid hopes of easing tensions in the Middle East.
“Globally, the AI investment theme remained the key driver, while domestically, financial stocks led the gains, along with selective buying in auto and consumption shares,” he said.
Nair added that the market continues to follow a “buy-on-dips and sell-on-rallies” trend.
“A sustained uptrend will likely require geopolitical stability and softer oil prices, which would strengthen macroeconomic conditions and improve FII sentiment, especially as corporates head into a weak first quarter of FY27,” he said.
Market experts said the Nifty 50 has been moving in a narrow range over the past four to five sessions and requires a decisive breakout for the next major move.
Rupak De of LKP Securities said the RSI has entered a positive crossover but remains largely flat on the daily chart, signalling weak momentum.
According to him, immediate support for the Nifty is placed at 23,600. A break below this level could drag the index towards 23,400, while a decisive move above 23,800 may trigger a fresh short-term rally.
Sudeep Shah of SBI Securities said immediate resistance for the Nifty is seen in the 23,870-23,900 zone.
“A sustained move above this zone could push the Nifty towards 24,050 and later 24,200 in the short term. On the downside, immediate support is placed in the 23,570-23,550 range,” Shah said.
