Indian stock markets traded positively on Friday, with the Sensex gaining 231.99 points, or 0.31%, to settle at 75,415.35 and the Nifty 50 rising 64.60 points, or 0.27%, to close at 23,719.30. According to latest market updates, the rally was driven by optimism over diplomatic efforts between the U.S. and Iran for a possible peace deal. As per NDTV reports, both sides are currently exchanging draft proposals and messages, with U.S. Secretary of State Marco Rubio noting there were 'some good signs' in the discussions, though issues related to Iran's uranium stockpile and control over the Strait of Hormuz remain key concerns. The positive sentiment was further supported by Asian markets trading higher and Wall Street ending with gains overnight, with the Dow Jones hitting a fresh record high of 50,285.66. As per Geojit Investments, the market tone remained range-bound with Nifty expected to move in the 23,500-23,800 range if Middle East tensions persist, but any improvement through talks could push markets higher. However, analysts warn that markets are expected to remain volatile and heavily headline-driven in the coming week, with investor attention firmly focused on developments surrounding the US–Iran situation.
Market experts are now eyeing a potential Nifty breakout above the crucial 24,000 resistance level in the coming sessions, with analysts noting signs of gradual recovery supported by banking sector strength. According to Zee News reports, the RSI on the weekly timeframe stands at 42.69, reflecting a gradual recovery in momentum while still remaining in the neutral zone. The technical analysis shows immediate resistance for the Nifty at 23,900 and 24,000 levels, with support seen at 23,250 and 23,000. As per market experts, a breakdown below the 23,000 mark could trigger fresh selling pressure in the near term, while on the downside, support is seen at 23,250 and 23,000 levels. For the Sensex, analysts expect immediate resistance around the 75,800-76,000 zone, while support is seen near the 74,600-74,400 region. A decisive breakout on either side could determine the next major directional move for the broader market, with experts advising traders to remain disciplined and follow strict stop-loss strategies amid ongoing market volatility.
Banking and financial stocks emerged as the standout performers, with the Nifty Private Bank, Nifty Bank, and Nifty Financial Services indices outperforming the broader market during the session. Among individual stocks, Trent, Shriram Finance, Axis Bank, ICICI Bank, Wipro and Asian Paints emerged as the top gainers on the Nifty, while Max Healthcare, ITC, Sun Pharma, ONGC and Power Grid were among the top losers. However, defensive sectors witnessed selling pressure, with the Nifty Pharma, Nifty Media, and Nifty Healthcare indices emerging as the top laggards. Earlier in the session, the Nifty 50 crossed the 23,700 mark and the Sensex opened nearly 300 points higher during early trade, indicating strong momentum from the opening bell. According to Geojit Investments, financial stocks led the gains with selective interest in autos and consumption sectors, while globally, the AI investment theme remained the primary driver. As per Enrich Money, markets are expected to remain selective and cautious despite the recent improvement in sentiment, with global uncertainty still elevated.
The latest session built on the modest weekly gains achieved earlier, with the Sensex rising 0.2% and the Nifty 50 adding 0.3% on a weekly basis. The Nifty IT emerged as the standout performer, climbing 4% during the week after declining nearly 6% in the previous week. As reported by Mint, the gains were on the back of value buying after a sharp correction amid concerns over artificial intelligence-led disruption. The sector benefited from the rupee's weakness, which boosts the sector's dollar-denominated earnings, along with renewed preference for globally-linked defensive sectors amid domestic uncertainty. Private financial stocks also gained ground, with Axis Bank and ICICI Bank rising 3.3% and 1.6% respectively during the week. Among individual stocks, Zudio-parent Trent, Axis Bank, ICICI Bank, Asian Paints, HDFC Bank, Kotak Mahindra Bank, Bajaj Finserv and Hindustan Unilever shares jumped 1-3% to lead gains on Sensex. Last week, the BSE benchmark climbed 177.36 points, or 0.23 per cent, and the NSE Nifty went up by 75.8 points, or 0.32 per cent.
The Reserve Bank on Friday announced a record dividend of ₹2.87 lakh crore to the government for the year ended March 2026, providing a significant financial boost for the exchequer amid rising import bills and supply chain disruptions due to the West Asia conflict. According to The Hindu BusinessLine, analysts said the RBI's record dividend transfer would have a positive impact on liquidity expectations, fiscal flexibility and government spending prospects going forward. Participants will closely assess the impact of the RBI's record dividend transfer on liquidity expectations, fiscal flexibility and government spending prospects, as noted by Ajit Mishra from Religare Broking Ltd. This development comes as the government faces mounting pressure from the ongoing West Asia conflict, which has disrupted supply chains and increased import costs. The rupee-dollar trend and global market sentiment would also be tracked by investors, according to analysts, as currency movements continue to influence market dynamics.
The Indian rupee staged a significant recovery, appreciating 18 paise to close at 96.18 against the US dollar on Friday, aided by cooling crude oil prices, easing geopolitical tensions and RBI intervention in the currency market. According to Mint, analysts said RBI's recent measures to stabilize the currency helped restore confidence and reduce volatility in the forex market. Brent crude oil eased to around $105 per barrel from $109.26 last Friday amid some modest progress in the US-Iran peace talks, though concerns around imported inflation, fiscal pressure and pressure on corporate margins remained elevated in India. On Friday, Brent crude futures for July and US West Texas Intermediate futures for June advanced around 2% in early Asia trading, resuming their rally after three straight sessions of declines as investors weighed mixed messaging on Iran peace deal negotiations. As per Geojit Investments, concerns over extreme oil scenarios were downplayed, with analysts noting that recent reports expecting Brent crude to touch $200 per barrel are based on extreme cases.
