The Sensex and Nifty made a strong recovery on Friday, ending higher after rebounding from initial losses of over 1 per cent at the open. Gains in financial services, telecom, IT, FMCG, oil and gas, and automobiles helped reverse the earlier downturn.
At the close, the Sensex rose by 843 points, or 1 per cent, to 82,133, while the Nifty gained 219 points, or 0.9 per cent, to 24,768. Of the total shares traded, 1,741 advanced, 2,086 declined, and 114 remained unchanged.
On Friday, Bharti Airtel, Kotak Mahindra, ITC, HUL, and UltraTech led the gains on the BSE Sensex. Bajaj Finance, JSW Steel, IndusInd Bank, and Tata Steel were the top losers.
Market analysts attributed the volatility to the weekly expiry of Sensex derivatives contracts. The Sensex saw a dramatic recovery, surging nearly 1,950 points from its intraday low of 80,000 to an intraday high of 82,000.
Sectorial Update
Sector-wise, financial services led the recovery, with the Nifty Bank and Nifty Private Bank indices rising by 0.8 per cent, driven by gains in ICICI Bank, HDFC Bank, and Kotak Mahindra.
Telecom stocks also provided crucial support. Bharti Airtel soared 4 per cent after Jefferies included the company in its top picks for Asia in 2025, citing sustained earnings momentum from tariff hikes.
The IT sector extended its rally, with the Nifty IT index climbing to a fresh high of 46,088.90 for the fifth consecutive session, led by HCLTech, Infosys, and TCS.
Meanwhile, although recovering from its lows, the Nifty Metal index ended 0.7 per cent lower due to concerns over the strength of the US dollar and uncertain stimulus measures from China. Shares of Tata Steel, Vedanta, and NMDC were the main contributors to the index’s decline.
Broder Market
The broader market lagged behind, with the BSE Midcap index closing flat and the BSE Smallcap index slipping by 0.3 per cent.
The morning session’s decline mirrored losses across Asian markets, which were hit by a stronger dollar, rising US Treasury yields, and concerns about China’s economic outlook. The renewed selling by Foreign Institutional Investors (FIIs), who offloaded Indian equities worth Rs 4,572 crore on December 11 and 12, added to the market pressure.
While India’s Consumer Price Index (CPI) inflation eased to 5.48 per cent in November from 6.21 per cent in October, concerns about persistently high food prices remain. This could potentially delay the Reserve Bank of India’s (RBI) interest rate cuts.
