Strong Recovery Following Previous Session Loss
Indian equity benchmark indices ended Friday’s session on a buoyant note, recovering a significant portion of losses from the previous trading session. The BSE Sensex rallied over 300 points to settle at 73,881, while the broader NSE Nifty 50 climbed more than 77 points to close around the 23,140 level. Market sentiment improved as bargain hunting emerged across select index heavyweights following a steep drop on Thursday, when multiple macroeconomic concerns unsettled investors.
Impact of Bond Yields and Elevated Crude Prices
The market rebound unfolded despite persistent global headwinds, particularly elevated US Treasury yields and high crude oil prices. Market analysts noted that the US 10-year Treasury yield hovering near 5.2% continues to act as a primary challenge for international risk assets. Additionally, Brent crude prices remained elevated around $106 per barrel, posing an ongoing economic hurdle for major oil-importing nations like India, even as energy prices showed mild signs of cooling off from local peaks.
Mixed Global Signals Across Asian and US Markets
Global cues presented a mixed landscape during Friday’s trading hours. Asian benchmark indices closed on a divergent note; Japan’s Nikkei 225 managed to trade in positive territory, whereas Hong Kong’s Hang Seng and China’s Shanghai SSE Composite Index closed lower. Overnight trade in the United States ended mostly lower as investors reassessed the macroeconomic environment and interest rate expectations amid firming yield levels.
Foreign Institutional Investors Maintain Selling Streak
Institutional flows revealed continued caution among foreign portfolio investors. Exchange data showed Foreign Institutional Investors (FIIs) remained net sellers in the domestic equity market, offloading shares worth ₹5,027.36 crore in the preceding session. Persistent institutional outflows continue to cap sharp upside momentum, creating a cautious trading environment across mid-cap and small-cap segments.
