Mumbai: Indian equity benchmarks surged on Friday, defying weak global cues and fresh worries over the Strait of Hormuz, as strong corporate earnings and heavyweight buying helped investors look beyond rising crude oil prices.
At 2:17 pm, the BSE Sensex stood at 78,234.34, up 1,047.48 points or 1.36 percent. The index opened at 77,370.77, touched a high of 78,282.55 and slipped to a low of 77,308.
The NSE Nifty 50 was at 24,342.90, higher by 270.15 points or 1.12 percent. It opened at 24,127.60 and moved between 24,099.05 and 24,367.30 during the session.
Earnings Lift Mood
The rally was led by information technology and financial shares after encouraging June-quarter results. Tech Mahindra gained following better-than-expected earnings, while Jio Financial Services advanced after reporting a sharp rise in profit.
Heavyweights Reliance Industries, HDFC Bank and ICICI Bank also attracted buying ahead of their results. Their gains gave strong support to the benchmarks because these stocks carry significant weight in the indices.
Oil Fears Persist
The rise came despite Brent crude trading near USD 85 a barrel as US-Iran hostilities intensified. Oil has climbed sharply this week amid fears that fighting could disrupt supplies through the Strait of Hormuz, a crucial global energy route.
Expensive crude is a major risk for India, which imports most of its oil needs. A prolonged increase can widen the import bill, weaken the rupee, lift inflation and squeeze company margins.
Why Bulls Returned?
Investors focused instead on company earnings, value buying after recent weakness and a technical breakout above 24,200 on the Nifty. A firmer rupee during early trade also supported sentiment.
However, the rally was concentrated in large-cap shares. Broader mid-cap and small-cap indices remained under pressure, showing that confidence was not uniform across the market.
Analysts expect earnings commentary, crude prices and developments around Hormuz to guide the next move. Sustaining above 24,200 could keep the near-term bias positive, but another oil spike may quickly revive volatility.
