Indian markets rebound after 3-day decline

Indian equity benchmarks rebounded sharply by over 1 per cent on Friday after sliding for the past three sessions, propelled by bargain hunting in Telecom, Realty and Utilities stocks amid a correction in global crude prices.  A largely supportive trend overseas and renewed foreign capital inflows along with easing tensions in the Middle East supported the domestic equities. 

Some of the important factors in today’s trade:

RBI issues project finance norms for banks, NBFCs: The Reserve Bank has issued norms to provide a harmonised framework for financing of projects in infrastructure and non-infrastructure sectors by banks, NBFCs and other regulated entities. 

Rupee rises against US Dollar: Indian rupee appreciated against the US dollar aided by a fall in global crude oil prices and a weakening greenback. A strong show in the domestic equity markets and FII inflows further supported the local unit.

Foreign investors extend buying spree in Indian equities: The exchange data showed Foreign Institutional Investors (FIIs) extended their buying spree for the third consecutive session, purchasing equities worth Rs 934 crore on Thursday. 

Govt imposes curbs on gold imported in certain forms: The government has imposed import curbs on certain colloidal precious metals, with an aim to check the illegal inflow of gold into India in liquid form. Colloidal precious metals are suspensions of gold or silver nanoparticles dispersed in liquid.

Global front: European markets were trading higher even as U.K. retail sales fell 2.7 percent on a monthly basis in May, in contrast to the revised 1.3 percent increase in April. Asian markets settled mixed after the White House said a final decision on whether to support Israeli military action against Tehran could come within two weeks. 

Finally, the BSE Sensex rose 1046.30 points or 1.29% to 82,408.17 and the CNX Nifty was up by 319.15 points or 1.29% to 25,112.40.  

The BSE Sensex touched high and low of 82,494.49 and 81,323.20 respectively. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.20%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were Telecom up by 2.73%, Realty up by 2.22%, Utilities up by 1.62%, PSU up by 1.59% and Power up by 1.43%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.27%, Mahindra & Mahindra up by 2.93%, Power Grid Corporation up by 2.38%, Reliance Industries up by 2.16% and Nestle India up by 1.97%. On the flip side, Maruti Suzuki down by 0.02% was the lone loser. 

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India is in trade dialogues with countries with whom it doesn't compete but can complement the economies involved. Addressing an India Global Forum (IGF) session on UK-India Science, Technology and Innovation Collaboration at the Science Museum, he elaborated on the opportunities that trade deals open up - bilaterally and to the wider global economy. 

Pointing to the UK-India FTA as well as deals concluded with Australia, the UAE and European Free Trade Association (EFTA), the minister said ‘our focus is on entering into robust trade agreements with the developed world’. He said ‘15 years ago, before their party's government came into power, India was more focused on doing trade agreements with countries that are our competitors. It really is silly, because (that is) opening up my market to my competitors, many of whom have now become the B team of China. So effectively and indirectly, I have opened up my market for goods that find their way from China into India’.

Referencing the ongoing trade negotiations with the US, New Zealand, the European Union (EU) and Gulf countries, the minister said ‘we are in dialogue with countries with whom we don't compete, with whom we complement each other; where they have certain things to offer, which India would love to have, as with the UK agreement, and we have certain things on offer. We don't hurt their economies’. Therefore, he said ‘these agreements will help us grow as an economy, help our innovation ecosystem get the right equipment, the right enabling environment. Our effort is to collaborate, co-create, co-operate and co-design. Let's work together as friends and allies of the democratic world’. 

The CNX Nifty traded in a range of 25,136.20 and 24,783.65. There were 44 stocks advancing against 6 stocks declining on the index.  

The top gainers on Nifty were Trent up by 3.96%, JIO Financial Services up by 3.31%, Mahindra & Mahindra up by 3.07%, Bharti Airtel up by 3.04% and Nestle India up by 2.77%. On the flip side, Hero MotoCorp down by 1.21%, Dr. Reddy's Lab down by 0.25%, Maruti Suzuki down by 0.15%, ONGC down by 0.14% and Axis Bank down by 0.11% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 41.65 points or 0.47% to 8,833.45, France’s CAC rose 41.42 points or 0.55% to 7,594.87 and Germany’s DAX gained 203.43 points or 0.88% to 23,260.81.

Asian markets settled mixed on Friday amid uncertainty around the Israel-Iran conflict. The White House has said the US President Donald Trump will decide whether or not the US gets directly involved in the Iran-Israel conflict within the next two weeks, while leaving the door open to negotiations. Chinese shares declined as the People’s Bank of China (PBoC) left its benchmark lending rates steady during the June fixing, in line with market expectations. Japanese shares fell slightly as data showed the country's core inflation rose to 3.7% in May, the highest since January 2023, raising concerns about tighter monetary policy. Meanwhile, the Bank of Japan's April 30 - May 1 policy meeting minutes showed the board was divided on the future inflation path. Seoul's Kospi index breached the 3,000-point mark for the first time in more than three years, supported by gains in big-cap tech shares. Data showed that South Korea's producer inflation slowed to 0.3% year-on-year in May 2025, down from 0.8% in April and the lowest since July 2023.