Closing Bell: Sensex jumps over 500 points, Nifty tops 24,350 - Anil Singhvi explains drivers behind market recovery

Benchmark indices ended higher on Friday, with the BSE Sensex rising 504.86 points, or 0.65 per cent, to close at 78,493.54, and the Nifty 50 gaining 156.80 points, or 0.65 per cent, to settle at 24,353.55.

In the past five sessions, the Sensex has advanced 1,011.42 points, or 1.31 per cent, to 78,344.84. Every month, the index has climbed 2,274 points, or 2.99 per cent.

Similarly, the Nifty 50 has risen 706.25 points, or 2.99 per cent, over the last five days to 24,310.10. For the month, the index is up 728.95 points, or 3.09 per cent.

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Top gainers and losers

Among the gainers, Hindustan Unilever rose 4.75 per cent, followed by Power Grid Corporation of India up 1.86 per cent and Reliance Industries gaining 1.61 per cent. Bharat Electronics Limited advanced 1.56 per cent, while Tech Mahindra climbed 1.41 per cent.

Other notable gainers included Titan Company up 1.34 per cent, Adani Ports and Special Economic Zone rising 1.31 per cent, and State Bank of India adding 1.20 per cent. ITC Limited gained 1.10 per cent, while Kotak Mahindra Bank rose 1.08 per cent.

Among others, Maruti Suzuki India, Asian Paints, NTPC Limited and Axis Bank also traded with gains.

On the losing side, Infosys was marginally down 0.02 per cent, while Larsen & Toubro fell 0.54 per cent. HCL Technologies declined 0.57 per cent, Mahindra & Mahindra dropped 0.68 per cent, and Sun Pharmaceutical Industries slipped 1.06 per cent.

Broader markets outperform

Broader markets traded higher along with benchmark indices, indicating strength across segments. The Nifty Next 50 gained 1.40 per cent to 70,273.80. Midcap indices also saw firm buying, with the Nifty Midcap 50 up 1.25 per cent, Nifty Midcap 100 rising 1.27 per cent, and Nifty Midcap 150 advancing 1.22 per cent.

Smallcap stocks outperformed, with the Nifty Smallcap 50 climbing 1.64 per cent, while the Nifty Smallcap 100 and Nifty Smallcap 250 gained 1.48 per cent each.

Among broader indices, the Nifty MidSmallcap 400 rose 1.30 per cent. The Nifty 100 advanced 0.79 per cent, while the Nifty 200 was up 0.88 per cent. The Nifty 500 gained 0.94 per cent.

Other indices also ended higher, with the Nifty LargeMidcap 250 rising 1.00 per cent, Nifty Midcap Select up 1.13 per cent, and Nifty Total Market gaining 0.95 per cent. The Nifty Microcap 250 advanced 1.18 per cent, while the Nifty FPI 150 rose 0.88 per cent.

Sectoral trends

Sectoral indices ended mostly higher, with buying seen across key segments. The Nifty FMCG led the gains, rising 2.65 per cent, followed by the Nifty Oil and Gas up 1.38 per cent and Nifty Media gaining 1.34 per cent. The Nifty Metal advanced 1.10 per cent, while the Nifty Consumer Durables rose 1.20 per cent.

Among others, the Nifty Bank gained 0.85 per cent, Nifty Private Bank rose 0.78 per cent, and Nifty PSU Bank added 0.74 per cent. The Nifty Financial Services and Nifty Fin Service 25/50 also ended higher.

The Nifty Realty climbed 0.94 per cent, while the Nifty Healthcare and Nifty Pharma rose 0.41 per cent and 0.14 per cent, respectively. The Nifty Auto was up 0.20 per cent. However, the Nifty IT remained largely flat with a marginal decline of 0.02 per cent.

What’s driving the recovery?

Market expert Anil Singhvi said the recent recovery is driven by easing selling pressure from foreign institutional investors (FIIs), lower volatility and improving global cues.

“The biggest reason for the recovery is that FII selling pressure has reduced. Over the last two sessions, there has been some buying seen in cash markets,” Singhvi said.

He added that although FIIs remain net sellers, the intensity of selling has declined sharply compared to the start of the April series. “Earlier, FIIs were selling aggressively every day. Now that selling has almost stopped. This itself is a big support for the market,” he said.

Singhvi said buying at lower levels and recovery in global markets have also supported sentiment. He added that the strength of the rupee has further improved confidence.

He pointed out that India VIX has declined below key levels. “India VIX has fallen below 18 and is down around 3 per cent. This is a positive signal for the market,” he said. He said the Nifty 50 has been holding strong support near 24,100, indicating resilience.

Key triggers and risks ahead

Singhvi said expectations around the results of HDFC Bank and ICICI Bank are also supporting the market.

“Both banks have become key movers. If their results are better than expected, they can push the indices higher,” he said.

However, he cautioned that crude oil prices remain a key risk. “If crude rises towards or above USD 100, it can hurt sentiment. If it cools towards USD 90, it will be positive,” he said.

He added that global developments and institutional flows also need to be tracked closely.

Singhvi warned that weak earnings or cautious guidance from banks could trigger downside. He said 24,100 remains a key support for Nifty, while resistance is seen in the 24,300–24,525 range.

“The trend is positive, but one should not become complacent. Keep an eye on crude, global cues and banking results,” he said.