MUMBAI: Equity benchmark indices Sensex and Nifty staged sharp rebound by nearly 1 per cent on Friday on hopes of record RBI dividend.
There was strong buying in heavyweights such as Reliance Industries, HDFC Bank and ITC.
Investor sentiment was buoyed by hopes of a record RBI dividend transfer and easing US Treasury yields, according to traders.
After a subdued start, the 30-share BSE Sensex surged 769.09 points or 0.95 per cent to close at 81,721.08. During the session, it jumped 953.18 points or 1.17 per cent to touch an intraday high of 81,905.17.
On the NSE, the Nifty rallied 243.45 points or 0.99 per cent to settle at 24,853.15.
Broader market sentiment was positive, with 2,361 stocks advancing, 1,589 declining and 156 remaining unchanged on the BSE.
Despite Friday’s recovery, the indices ended the week in the red. The Sensex declined 609.51 points or 0.74 per cent and the Nifty lost 166.65 points or 0.66 per cent on a weekly basis.
“The domestic market has recouped nearly half of the week’s losses, supported by gains in FMCG and IT stocks. FMCG benefitted from the early and above-normal monsoon forecast, while IT stocks saw a rebound following a healthy correction,” said Vinod Nair, Head of Research at Geojit Financial Services.
RBI dividend
“Optimism around a potentially record-high dividend from the RBI is boosting hopes for fiscal consolidation, reflected in falling Indian bond yields,” he added.
Among Sensex stocks, top gainers included Eternal, Power Grid, ITC, Bajaj Finserv, Nestle, Axis Bank, Kotak Mahindra Bank and Adani Ports. Sun Pharma was the sole laggard, falling nearly 2 per cent after the company reported a 19 per cent drop in consolidated net profit for the quarter ended March 31, 2025.
In the broader market, the BSE midcap index rose 0.50 per cent while the smallcap gauge added 0.45 per cent.
Sectorally, FMCG led with gains of 1.49 per cent, followed by utilities (1.02 per cent), power (1.01 per cent), financial services (0.99 per cent), bankex (0.99 per cent), oil & gas (0.94 per cent), and energy (0.82 per cent).
In Asia, Japan’s Nikkei 225 and Hong Kong’s Hang Seng ended in the green, while South Korea’s Kospi and China’s Shanghai Composite closed lower. European markets were trading higher in mid-session deals. US markets ended largely flat overnight on Thursday.
Global oil benchmark Brent crude slipped 0.23 per cent to $64.29 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs5,045.36 crore on Thursday, according to exchange data.
US-India trade talks
“Investor attention is further revolving around US-India trade talks and strong domestic macroeconomic indicators. However, recent FII outflows, driven by rising US bond yields amid concerns over mounting US debt, may weigh on the market sentiment,” Nair said.
On Thursday, the Sensex had dropped 644.64 points or 0.79 per cent to 80,951.99, while the Nifty had shed 203.75 points or 0.82 per cent to 24,609.70.
“Markets quickly rebounded after a subdued opening, as short-covering helped benchmark indices stay in positive territory thereafter. The market has been volatile throughout the week, as concerns over US fiscal health due to rising debt and interest rates seen unchanged weighed on sentiment,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
