Indian stock indices are rising on Friday following a sharp sell-off that pushed Sensex to a 32-month low and Nifty to an 18-month low. All Nifty sectoral indices are trading in the green. Analysts attribute the rebound to the market being oversold, which could trigger a technical recovery; however, several factors may limit the growth: high oil prices, rising global bond yields, and a weakening rupee.
At 14:23, Sensex added 1,028.13 points, or 1.42%, to 72,611.40, while Nifty rose by 328.95 points, or 1.46%, to 22,555.11. This recovery is occurring amid ongoing uncertainty in global markets: investors are assessing whether the rebound can hold or will be short-lived. Commodity and currency factors are increasing pressure on the market. Brent oil is holding around $104 per barrel after a 4% rise on Thursday amid Middle Eastern tensions and supply disruption fears. High oil prices for India, a major energy importer, mean increased expenses and pressure on the trade balance. Additionally, global bond yields are rising, reducing the attractiveness of risk assets, and the rupee is weakening.
It is worth noting the dynamics of institutional flows separately. Foreign portfolio investors sold Indian stocks worth ₹12,944 crore on Thursday, marking the largest one-day outflow since May 29, 2026. Meanwhile, domestic institutional investors bought ₹10,703 crore, partially offsetting the pressure from foreign funds. The IT sector remains under pressure for two reasons. Firstly, TCS reported its weakest revenue growth in three years for the September quarter, disappointing investors. Secondly, the US has suspended access for large outsourcing companies to a key green card program, creating additional uncertainty for the industry, which is traditionally focused on the American market.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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