Markets witnessed a sharp up move on Friday, supported by optimism surrounding a potential US-Iran agreement and the subsequent decline in crude oil prices. The Nifty gained 2% to close at 23,622, while the Bank Nifty surged 3%, reflecting strong buying interest in financial stocks. Broader markets outperformed, with the Midcap100 and Smallcap100 indices advancing 2.4% and 2.8%, respectively. Sectorally, all major sectors ended in the green, with Realty, Private Banks and Public Sector Banks emerging as the top gainers. Meanwhile, India VIX declined 5.7%, indicating easing volatility and improving investor confidence.
Going forward, the key monitorables will be India’s Consumer Price Index inflation data on Friday and Wholesale Price Index inflation data this week. Global cues will also remain important. Additionally, developments in the US-Iran negotiations, crude oil price movements and Foreign Institutional Investor flows will remain key factors influencing market sentiment,” says Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.