Indian equity benchmarks closed higher on Friday, buoyed by strong gains in major banking stocks, including ICICI Bank, HDFC Bank, and Axis Bank. The Sensex rose 232 points, or 0.31%, to settle at 75,415.35, while the Nifty 50 gained 65 points, or 0.27%, closing at 23,719.30.
The market's performance was influenced by global geopolitical tensions, particularly the US-Iran situation, which investors are closely monitoring. Ponmudi R, CEO of Enrich Money, noted that markets are likely to remain volatile and sensitive to headlines in the coming week. He highlighted that any progress in diplomatic efforts or a decline in crude oil prices could boost risk appetite and global sentiment.
Ajit Mishra, SVP of Research at Religare Broking, advised investors to maintain a cautious and selective approach amid currency volatility and uncertain foreign flows. He emphasized the importance of disciplined risk management practices, suggesting a focus on sectors such as energy, pharma, and metals.
“Markets are likely to stay volatile and highly sensitive to headlines in the upcoming week, as investors closely track developments related to the US–Iran situation, wider diplomatic discussions and fluctuations in crude oil prices.”
Ponmudi R, CEO - Enrich Money
Despite recent improvements in market sentiment, persistent global uncertainty is expected to keep investors cautious. Ponmudi pointed out that the Sensex is trading with a cautious undertone, with immediate resistance around the 75,800–76,000 zone and support near 74,600–74,400.
Mishra added that the Nifty 50 is trading with a corrective bias, with key support around the 23,150–23,250 zone and resistance in the 23,800–24,000 range. The Bank Nifty has shown resilience, with potential for a rebound if it moves above the 20-DEMA near 54,400.
“We continue to prefer sectors such as energy, pharma, and metals, and recommend using market dips to accumulate quality names selectively.”
Ajit Mishra, SVP, Research, Religare Broking
Background
The Indian stock market has been experiencing fluctuations due to global geopolitical tensions, particularly the ongoing US-Iran situation. Elevated crude oil prices and inflation concerns have also contributed to market volatility, prompting investors to adopt a cautious approach.
Looking ahead, market participants should monitor geopolitical developments, crude oil price fluctuations, and macroeconomic indicators for further direction. The ongoing US-Iran tensions and their impact on global energy supplies will be critical factors influencing market movements.
