Sensex, Nifty rebound sharply on softer crude, renewed FII buying

Indian equity benchmarks staged a strong recovery on Friday, snapping a three-day losing streak despite persistent geopolitical concerns surrounding Iran and Israel. The rally was broad-based, supported by most sectoral indices, falling crude oil prices and sustained foreign investor buying.

Last checked, the 30-share BSE Sensex pack surged 690 points or 0.85 per cent to 82,052 level, while the broader NSE Nifty index jumped 215 points or 0.87 per cent to trade at 25,009.

Oil prices eased, with benchmark Brent crude declining over 2 per cent to settle around the $77 per barrel mark. India, which imports more than 80 per cent of its oil requirements, typically benefits from lower crude rates, which in turn boosts investor confidence.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said that while geopolitical tensions persist, the domestic markets witnessed strong buying interest driven by easing crude oil prices. "If the Nifty manages to sustain above the 25,000 level, the upward momentum is likely to continue," he added.

Meanwhile, foreign institutional investors (FIIs) remained net buyers for the third straight session. They purchased shares worth Rs 934.62 crore on a net basis in the previous trading day. Domestic institutional investors (DIIs) also continued to support the market, with net purchases amounting to Rs 605.97 crore, according to data from the exchanges.

The rebound comes at a time when global markets remain on edge due to escalating geopolitical tensions in the Middle East. However, investors appeared to take comfort in easing commodity prices and consistent institutional flows into Indian equities.

Market participants will now closely watch geopolitical developments and global macroeconomic cues for further direction.