Indian equity benchmarks managed to hold onto modest gains in afternoon trade on Friday, navigating a mixed sectoral landscape as investors positioned themselves ahead of the crucial US non-farm payrolls report due later in the day.
Support from key sectors like IT, Oil & Gas, and Banking helped offset weakness elsewhere, although broader market sentiment remained cautious.
While headline indices eked out gains, the market dynamics revealed underlying crosscurrents.
Around 3 pm IST, the BSE Sensex was trading higher by approximately 352.79 points (0.44%) at 80,595.03, while the NSE Nifty 50 index was up 43.05 points (0.18%) at 24,377.25.
However, declining stocks significantly outnumbered advancers (roughly 1,841 declines vs. 1,558 advances), indicating pressure beneath the surface.
The Nifty IT index continued its positive run, though it pared some earlier gains, while Banking and Oil & Gas stocks also provided significant support.
Conversely, Pharma, Metal, and Realty sectors faced selling pressure, capping the overall rally.
FII support battles geopolitical caution
Market resilience in recent sessions has been significantly bolstered by consistent foreign institutional investor (FII) inflows.
“The surprising resilience of the market has been primarily driven by sustained FII buying for eleven trading sessions in a row, taking the cumulative FII inflow during this period to Rs 37,375 crore,” explained VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, according to a report in Moneycontrol.
He attributed this trend to “weakness in the dollar and declining growth prospects in the US,” alongside domestic positives like falling interest rates, lower crude prices, and signs of demand recovery.
Vijayakumar also highlighted the potential boost from India possibly being among the first nations to secure a new trade deal with the US.
However, he cautioned that geopolitical risks stemming from India-Pakistan tensions remain an overhang, advising investors to “be cautious even while remaining invested,” especially given current market valuations.
Broader market feels the pinch
The caution was more evident in the broader market segments.
Both the Nifty Midcap 100 and Smallcap 100 indices traded lower, down around 0.7% and 0.1% respectively in the afternoon.
These segments have underperformed year-to-date (down 6% and 12.5% respectively).
While the recent correction provided some relief, experts like Rajesh Palviya of Axis Securities believe valuations aren’t yet deeply attractive, suggesting investors should prioritize “names with clear earnings visibility,” the report further said.
IT shines post-cognizant; banks consolidate
The Nifty IT index remained the standout positive sector, albeit off its highs, gaining over 1%.
This strength followed better-than-expected results and raised guidance from US-based Cognizant Technology Solutions, which cited strong demand for AI services, boosting sentiment for Indian peers like TCS, Infosys, and HCL Technologies (all up ~1%).
The Nifty Bank index, after hitting record highs earlier, cooled off during the session as investors digested quarterly results from various lenders.
State Bank of India (SBI) shares were up around 1% ahead of its own Q4 earnings announcement, with brokerages generally anticipating a profit decline due to margin pressures.
Corporate movers: Railtel, Adani Ports gain on results
Specific stocks reacted strongly to earnings news:
Railtel Corporation: Shares surged over 12% after the railway PSU reported robust Q4 results, including a 46.3% year-on-year jump in net profit (to Rs 113.4 crore) and a 57% rise in operating income (to Rs 1,308.28 crore).
Adani Ports: Shares climbed over 6% earlier in the session following a 50% year-on-year increase in its March-quarter net profit (to Rs 3,025 crore) and a strong revenue growth forecast for the current fiscal year.
Technical outlook: Nifty faces resistance
After briefly crossing 24,500 earlier, the Nifty 50 retreated below 24,400.
Moneycontrol quoted Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighting selling pressure near the 24,450 resistance zone.
He pointed to a potential “double-top pattern” on intraday charts, suggesting possible short-term weakness.
“The index may see further downside, potentially drifting toward 23,900,” Chouhan cautioned, unless it decisively sustains above 24,450.
Top Nifty gainers in the afternoon included Adani Ports, Bajaj Finance, IndusInd Bank, Maruti Suzuki, and SBI, while JSW Steel, Bajaj Auto, Nestle, Eicher Motors, and Hero MotoCorp lagged. All eyes now turn to the US jobs report for potential market direction cues.
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