Indian Stocks Rally on Easing Oil Prices and Positive Earnings
Indian benchmark indices surged over 1% on Friday, adding ₹6 lakh crore in market capitalisation as falling crude oil prices and easing geopolitical tensions boosted investor confidence ahead of key corporate earnings.
Indian equities posted strong gains on Friday, with the Sensex climbing 1.08% to 77,569.39 and the Nifty 50 advancing 1.02% to 24,206.90. The rally added approximately ₹6 lakh crore to the cumulative market capitalisation of BSE-listed companies, bringing the total to nearly ₹482 lakh crore. Despite the robust daily performance, both benchmarks posted a marginal 0.25% decline for the week, ending a four-week winning streak.
The upward momentum was driven by a combination of softer global macroeconomic headwinds and encouraging domestic earnings. Reports that the US and Iran will continue technical talks eased geopolitical concerns, while declining crude oil prices and a stronger rupee provided additional support. On the corporate front, in-line first-quarter results from Tata Consultancy Services lifted the IT sector, and positive business updates from the banking sector reinforced broader market confidence.
From a technical standpoint, the market's risk profile improved markedly following a two-session recovery that saw the Nifty rise 1.4%. The India VIX fell 8.31% to 12.25, while a put-call ratio of 1.14 pointed to moderately bullish sentiment among derivatives traders. Sumeet Bagadia, Executive Director at Choice Broking, noted that the Nifty formed a strong bullish candle and expects immediate support at the 23,920–24,000 zone, with resistance at 24,450–24,500.
The banking index demonstrated similar technical strength, closing above a junction of its 50-day and 200-day exponential moving averages. Bagadia indicated that as long as the Bank Nifty sustains above the 57,300–57,450 support zone, the overall bias will remain positive. A decisive move above the 58,400–58,700 resistance level is required to trigger the next leg of the rally.
Sector-specific momentum is currently focused on key index heavyweights across defense, financials, and materials. Bagadia highlighted Bharat Electronics as a technically sound play, citing a target of ₹450 against a strict stop-loss of ₹399. In the banking space, Axis Bank was recommended with a target of ₹1,418, supported by its 200-day exponential moving average near ₹1,270. UltraTech Cement rounded out the selections, with a target of ₹12,600 predicated on the stock holding above the ₹11,200 support level following a recent rebound from ₹10,706.
