Post Session: Quick Review

Indian equity benchmarks ended sharply higher on Friday, with both the Nifty and Sensex surging around 2% amid easing geopolitical tensions after U.S. President Donald Trump announced that Washington reached a framework agreement with Iran, raising hopes that the Middle East conflict could be nearing its end. Markets made a gap-opening and extended gains throughout the session, supported by broad-based buying across sectors, with banking and financial stocks leading the advance.

Some of the important factors in trade:

Bank credit grows over 17% in May: Traders took support with the Reserve Bank data showing that bank credit grew 17.44 per cent year-on-year in May, marking the ninth consecutive month of double-digit expansion, reflecting sustained demand for loans from both retail and corporate borrowers. 

India protecting industry from unfair trade practices of certain countries: Traders took a note of Commerce and Industry Minister Piyush Goyal’s statement that countries, including India, protect their domestic industries from unfair trade practices and dumping, but India remains committed to navigate global trade challenges through dialogue, cooperation, and mutually beneficial engagement.

India to remain fastest-growing major economy at 6.6% in FY27: Traders assessed the World Bank's projection the India will remain the world's fastest-growing major economy, expanding at 6.6 per cent in fiscal year 2026-27, a sharp moderation from 7.7 per cent in the previous year.

On the global front: European markets were trading in green, while Asian markets closed higher, after oil prices tumbled and concerns about Middle East tensions eased following U.S. President Donald Trump calling off his planned attacks on Iran.

The BSE Sensex ended at 75527.95, up by 1695.40 points or 2.30% after trading in a range of 74453.39 and 75608.02. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.55%, Industrials up by 3.45%, Bankex up by 2.94%, Telecom up by 2.69% and Consumer Durables up by 2.59%, while there were no losing indices on the BSE (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 5.62%, Larsen & Toubro up by 4.86%, Interglobe Aviation up by 4.64%, Titan Company up by 3.85% and Eternal up by 3.85%. On the flip side, Tech Mahindra down by 2.24%, Power Grid Corp down by 0.58% and Tata Steel down by 0.10% were the few losers. (Provisional)

Meanwhile, finance Minister Nirmala Sitharaman has called for coordinated global action to deal with the adverse impact of conflicts and uncertainty. She pointed that while the prosperity and challenges are shared in today’s interconnected world, the consequences of conflicts and uncertainty fall disproportionately on developing countries and the Global South. She added that some imbalances globally reflect differences in demographics, development stages, resource endowments, or economic structures. Therefore, the focus should be on excessive and persistent imbalances while recognising that the scale of domestic needs varies significantly across countries.

Moreover, she has emphasized the need of strengthening multilateral cooperation to build resilient economies, accelerate sustainable development, and ensure inclusive growth that benefits all. Besides, she noted that the recent developments have highlighted the importance of resilient, diversified and geographically distributed supply chains, particularly for critical minerals, and focus on circularity, recycling and urban mining can address some of the sourcing challenges being collectively faced by the world.

Highlighting India’s economic progress, the minister said India continues to be among the world’s fastest-growing major economies, with GDP growth projected to remain robust at around 7% over the medium term. She added that GDP growth is primarily domestic-demand led, with a largely market-determined exchange rate.

The CNX Nifty ended at 23622.90, up by 461.30 points or 1.99% after trading in a range of 23313.90 and 23645.35. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shriram Finance up by 8.10%, Bajaj Finance up by 5.49%, Larsen & Toubro up by 4.87%, Interglobe Aviation up by 4.60% and Tata Motors Passenger up by 4.28%. On the flip side, Nestle down by 3.25%, ONGC down by 2.53%, Tech Mahindra down by 2.18%, SBI Life Insurance down by 0.81% and Tata Consumer Products down by 0.71% were the top losers. (Provisional)

European markets were trading higher; France’s CAC rose 160.6 points or 1.96% to 8,361.40, Germany’s DAX gained 360.79 points or 1.49% to 24,570.50 and UK’s FTSE 100 increased 114.21 points or 1.11% to 10,418.09.

Asian markets settled higher on Friday tracking Wall Street’s gains overnight after US President Donald Trump called off new military strikes on Iran and said a peace deal could be signed in a few days, helping ease concerns about conflict-driven inflation and potential interest rate hikes. Moreover, falling crude oil prices also boosted market sentiments. Chinese shares rallied as e-commerce stocks rebounded after falling in the previous session following Beijing’s regulatory warning to major online shopping platforms over misleading sales tactics during the country’s major 618 shopping festival. Seoul shares surged over 4% as foreign investors turned net buyers for the first time in 25 trading sessions.