Indian stock markets rebounded in early trade on Friday, recovering from recent losses, as a decline in global oil prices boosted investor sentiment. The benchmark BSE Sensex rose over 300 points, while the NSE Nifty50 gained around 90 points in initial trading.
Oil Prices Decline Amid US-Iran Talks
The positive momentum was driven by a sharp drop in crude oil prices, which fell over 2% in international markets. This decline came as reports indicated progress in negotiations between the United States and Iran, raising hopes of a potential easing of sanctions on Iranian oil exports. Lower oil prices are beneficial for India, a major crude importer, as they help reduce inflationary pressures and improve the country's fiscal position.
Market Recovery After Recent Slump
The rebound comes after a period of volatility, with markets having declined in the previous session due to concerns over global economic growth and rising geopolitical tensions. Analysts attributed the recovery to bargain hunting at lower levels and optimism over the US-Iran talks.
Among sectoral indices, auto, banking, and metal stocks led the gains, while IT and pharma stocks also traded higher. The broader market also showed strength, with the BSE Midcap and Smallcap indices rising over 0.5% each.
Global Cues Supportive
Asian markets also traded higher on Friday, tracking overnight gains on Wall Street, where the S&P 500 and Nasdaq ended in positive territory. Investors are now awaiting key US jobs data later in the day for further cues on the health of the world's largest economy.
Domestically, the focus will remain on corporate earnings announcements and the trajectory of foreign institutional investment flows. Analysts expect the market to remain range-bound in the near term, with a positive bias if oil prices stay lower.
