Indian stock markets continued to gain profit for the third consecutive day on Friday. The rise in indices was driven by falling crude oil prices, active purchases of shares in the IT and metallurgy sectors, as well as a favorable technical picture.
Dynamics of Major Indices
The BSE Sensex index increased by 655 points, which is 0.85 percent, reaching the level of 78,157. Simultaneously, the NSE Nifty50 index advanced by 202 points, or 0.83 percent, in early trading sessions, reaching 24,378.
Impact of Global Factors
Investor sentiment was further supported by positive global signals. The US employment report for June, which was weaker than expected, strengthened expectations of a softer policy from the Federal Reserve, leading to a new record high for the Dow Jones index. At the same time, the Nasdaq fell by more than 1 percent amid ongoing selling in stocks related to artificial intelligence and semiconductors.
Analysis of Market Growth Causes
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, India's relative advantage is supported by the weakness of the KOSPI index and the general weakness of global chip trade. He noted that the continued slowdown in the outflow of funds from foreign institutional investors (FIIs) is another significant factor supporting the market. Nevertheless, Vijayakumar warned that fundamental support is necessary for this rally to be sustainable.
Factors Contributing to Growth
One of the key factors was the decline in crude oil prices, as transit through the Strait of Hormuz resumed, reducing supply concerns. The price of Brent crude dropped below $71 per barrel—the lowest level since late February—which eased inflationary concerns for a major oil-importing economy like India. In the last check, Brent fell by 0.01 percent to $71.75 per barrel, and WTI fell by 0.09 percent to $68.63 per barrel.
The IT sector became the biggest beneficiary, as investors accumulated shares in this sector due to attractive valuations. The Nifty IT index rose by 2.79 percent in the early trading session before correcting its gains, ultimately showing an increase of 1.96 percent, reaching 27,493. Shares of HCL Technologies rose by approximately 4 percent, while Persistent Systems, Mphasis, and Tech Mahindra traded more than 2 percent higher.
Support from Large Issuers
The rise in benchmark indices was also ensured by purchases in the shares of large companies, including ICICI Bank, HDFC Bank, Bharti Airtel, Infosys, and HCL Technologies. In the last check, these stocks showed a rise of up to 2 percent.
Technical Analysis and Forecasts
According to analysts, the overall market trend remains constructive, supported by improving momentum indicators, a strong position in the derivatives market, and a sharp decrease in volatility. Aakash Shah, Technical Research Analyst at Choice Broking, suggested that the immediate trading range for Nifty is between 24,000 and 24,300, and a decisive breakthrough above 24,300 could trigger the next phase of the rally towards the 24,500–24,600 level.
Anand James, Chief Market Strategist at Geojit Investments, was more optimistic about the prospects, believing that the 24,600 scenario looks more promising. However, he added that the inability to exceed the 24,170 zone could undermine these hopes, and they are waiting for a dip below the 24,000 zone to change their position.
