Indian stock indices rebounded on Friday, snapping a four-session losing streak with modest gains supported by positive Asian cues and easing US Treasury yields. The S&P BSE Sensex jumped 362.57 points or 0.48% to 76,515.43, while Nifty 50 index added 24.25 points or 0.10% to 23,897.70. In the past four sessions, the Sensex and Nifty had declined 1.44% and 1.25% respectively. Gains were led by metal and private banking stocks, with Tata Steel (up 2.49%), Reliance Industries (up 1.50%) and HDFC Bank (up 0.77%) boosting the Nifty higher. The BSE 150 MidCap Index shed 0.01% and the BSE 250 SmallCap Index rose 0.24%, while market breadth remained positive with 2,016 shares rising and 1,517 shares falling on the NSE. The NSE's India VIX tumbled 6.50% to 10.60, indicating reduced market volatility expectations.
Wall Street's overnight rebound and gains across Asian equities are providing significant support to Indian markets, with Japan's Nikkei 225 up 0.65% and South Korea's Kospi rallying 1.23% in early trade. According to Business Standard, US Treasury yields retreated for a second consecutive session as expectations of an imminent Federal Reserve rate hike moderated. Federal Reserve Governor Christopher Waller's comments that he would support keeping the federal funds rate unchanged if upcoming data confirms that inflationary pressures are easing helped lift investor sentiment. Following his comments, the probability of a September rate hike fell to around 50% from 63.2% on Wednesday, according to CME FedWatch. US equities rallied sharply on Thursday, with the Dow Jones gaining 1.18% to 53,686.11, the S&P 500 rising 1.06% to 7,747.71 and the Nasdaq advancing 1.40% to 26,584.06. The US 10-year Treasury yield also retreated to 4.757%, providing additional support to global markets.
India's economy delivered a robust performance in the April-June quarter of 2026-27, with GDP growing 7.8%, significantly beating the RBI's projection of 7%. According to the Ministry of Statistics and Programme Implementation (MoSPI), real GDP at constant 2022-23 prices is estimated at ₹81.36 lakh crore in Q1 FY27, up from ₹75.46 lakh crore in the year-ago period. Nominal GDP at current prices grew 10.3% to ₹88.27 lakh crore from ₹80 lakh crore a year earlier. The upside surprise for Asia's third-largest economy came even as geopolitical tensions from the US-Israeli war on Iran continued to rattle global markets. Prime Minister Narendra Modi called the 7.8% GDP growth a herculean feat, while the ministry noted that "Indian economy has sustained growth momentum despite global headwinds." The stronger-than-expected growth comes after the Reserve Bank of India raised its GDP growth forecast for the full financial year to 6.7% from 6.6% earlier.
The Securities and Exchange Board of India (SEBI) has introduced CAS in the equity cash segment from August 3, 2026, through its January 16, 2026 circular, for determining the closing price of securities. However, SEBI is proposing certain changes in the methodology for determination of settlement prices of derivative contracts following the initial implementation period and feedback from stakeholders. As reported by Business Standard, after monitoring the mechanism during its first month and receiving feedback from stock exchanges, brokers, traders, mutual funds, FPIs and other market participants, SEBI said it may propose changes to the settlement-price methodology and plans to issue a consultation paper in about a week. Kirit Somaiya, former Member of Parliament and BJP leader, welcomed the decision to review CAS, noting he has been advocating for a comprehensive review following the CAS-induced trading disorders. The framework has been a source of significant market confusion, with experts calling for improved clarity and stability in the closing auction process.
According to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti, the Nifty 50 formed a small negative candle with a long lower shadow on the daily chart, indicating a bullish hammer-type formation. As reported by LiveMint, the 24,000 level remains a crucial support zone as it coincides with the recent swing low and the previous opening upside gap formed on July 29. Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, noted that "the 24,000 level remains an important support despite continued external headwinds. The price action suggests that, although external headwinds continue to weigh on sentiment, the 24,000 level remains a key line of defence that market participants are not yet willing to concede." However, Angel One's Hitesh Rathi highlighted that the Nifty has breached a key upward-sloping trendline and the 10-column moving average on the Daily 0.1% × 3 and 0.25% × 3 Point & Figure charts, signalling a downside reversal. The Nifty is likely to remain in a consolidation phase with the 24,000-23,950 zone emerging as a crucial support area and 24,170-24,200 acting as the immediate resistance band, according to technical analysts.
According to Kotak Securities' Head of Equity Research Shrikant Chouhan, the Nifty could potentially rebound towards 24,200–24,300 if the key support levels hold. As reported by LiveMint, on the downside, selling pressure could intensify below 24,000 on the Nifty 50, which could drag the index towards 23,850–23,800. Similarly, Angel One's Rathi expects the immediate resistance zone at 24,150–24,200, followed by a stronger hurdle at 24,300–24,360. For the Sensex, Chouhan expects the index could move up to 77,300–77,500 if the Sensex holds above 76,600, while Rathi identified 58,200–58,300 as immediate resistance for Bank Nifty. However, experts remain cautious about aggressive positioning, with Angel One's Hitesh Rathi advising participants to "continue to adopt a cautious approach and avoid the urge to venture into aggressive overnight positions, until a trend reversal is confirmed." The market volatility gauge, India VIX, spiked nearly 5% to 11.18 points during intraday trading, reflecting heightened uncertainty despite the positive global cues.
