After opening higher, the Indian market rallied ahead as the session progressed and ended the day on a strong footing.
The Nifty50 and the Sensex resumed their gaining streaks after a one-day break as traders assessed the situation in West Asia.
At the closing bell, the BSE Sensex closed higher by 919 points (Up 1.2%).
Meanwhile, the NSE Nifty closed 275 points higher (Up 1.1%).
Asian Paints, ICICI Bank and Bajaj Auto are among the top gainers today.
Coal India, Sun Pharma and TCS, on the other hand, were among the top losers today.
The GIFT Nifty was trading at 24,096.5, up by 213 points at the time of writing.
The BSE 150 MidCap index ended 1.7% higher, and the BSE 250 SmallCap index ended 1.6% higher.
Barring IT sector, all other sectoral indices were trading on a positive note, with stocks in the banking sector and auto sector witnessing a buying spree.
The rupee is trading at 92.73 against the US$.
Gold prices for the latest contract on MCX are trading 0.8% lower at Rs 152,163 per 10 grams.
Meanwhile, silver prices were trading 1.3% lower at Rs 240,654 per 1 kg.
Here are three reasons why Indian share markets are rising:
#1 Optimism Ahead of US-Iran Talks
Domestic markets are witnessing strong buying interest amid optimism that the upcoming US-Iran talks this weekend could ease tensions in West Asia. A potential de-escalation may help stabilise crude oil prices and reduce global macroeconomic risks, boosting investor sentiment.
#2 Positive Global Cues
Global markets also supported the rally, with Japanese and South Korean benchmarks rising nearly 2% following overnight gains in the S&P 500 and Nasdaq. Sentiment improved after Donald Trump softened his stance on Iran, while Israel agreed to hold talks with Lebanon next week, raising hopes of easing geopolitical tensions.
#3 Strong Buying in Banking and Financial Stocks
Buying in banking and financial heavyweights further supported the benchmarks. The Nifty Bank and Financial Services indices surged nearly 2% during the session, driven by value buying ahead of the upcoming Q4 earnings season.
Nifty IT Falls 3%
In news from the IT sector, technology stocks extended their decline on Friday, with the Nifty IT index dropping sharply by as much as 3%. The index snapped a six-session gaining streak, even as the broader market continued to trade firmly in the green.
The fall marks a reversal after a steady uptrend in IT stocks, which had posted gains for six consecutive sessions. Despite the recent recovery, the IT pack had underperformed compared to the broader market rally seen earlier this week.
Friday's decline also reflects a shift in investor positioning, with funds moving toward domestic-focused sectors. Banking and financial heavyweights such as ICICI Bank, Axis Bank, Bajaj Finance, and SBI Life Insurance gained around 2-3%. Meanwhile, the auto and realty indices also advanced, rising up to 2-2.7%.
Why is Coal India Share Price is Falling?
Moving on to the news from the mining sector, shares of Coal India fell sharply on Friday, declining 4.2% to Rs 435, emerging as the top loser on the Nifty 50, even as the broader market traded firmly in the green.
The decline comes after the state-run miner indicated that it is absorbing a significant rise in input costs while adopting pricing measures to keep coal affordable for consumers.
Coal India highlighted that explosives prices have surged 44% to Rs 72,750 per metric tonne, while industrial diesel prices have risen 54% to Rs 142 per litre. Despite these cost pressures, the company has decided not to fully pass on the increased costs to customers.
As part of its pricing strategy, Coal India has also reduced the coal reserve price in single-window, mode-agnostic e-auctions. The move aims to ensure affordable coal supply and limit downstream cost escalation. However, this decision appears to have weighed on investor sentiment, with markets factoring in potential margin pressure due to higher cost absorption.
Defence Stocks Rally Up to 16%
Moving to the defence sector, defence-related shares surged by as much as 16% on Friday, supported by a broad-based rally in the domestic equity market. The Nifty India Defence index rose 1.4%, with 17 out of its 19 constituents trading in the green.
The index has remained on an upward trajectory over the past seven trading sessions, gaining more than 14% during this period, reflecting sustained investor interest in defence stocks.
Aequs emerged as the top gainer, surging 16%.
Meanwhile, Bharat Forge and Dynamatic Technologies followed, advancing 3.43% and 2.9%, respectively.
The rally in defence stocks was further supported by improving market sentiment after reports of a ceasefire between the US and Iran, easing geopolitical concerns and boosting investor confidence.
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