Stock Markets Rally on Easing Geopolitical Tensions and FII Inflows

The domestic stock markets demonstrated resilience on Friday, rebounding from a weak start to end the session on a high note. Improved geopolitical sentiment, alongside a resurgence of foreign institutional investor inflows, underpinned this positive performance.

The NSE Nifty 50 index surged to close at 24,353.55, an increase of 156.80 points or 0.65%, while the BSE Sensex finished at 78,493.54, climbing by 504.86 points or 0.65%. Analysts attributed this positive momentum to easing tensions in West Asia and a reversal in FII flows. Vinod Nair, Head of Research at Geojit Investments Limited, highlighted the significance of a ceasefire between Israel and Lebanon, which helped keep crude oil prices below USD 100 per barrel, benefiting economies reliant on imports.

The local currency also saw gains, bolstered by Reserve Bank of India measures and a softening geopolitical landscape. All sector indices on the NSE reported positive close, with Nifty FMCG leading the charge, buoyed by price hikes and strong business updates. Other notable gainers included Nifty Media, Nifty Metal, and Nifty PSU Bank. Despite mixed global cues, market experts remain optimistic, although they emphasize that the Q4 earnings season will play a critical role in determining future market trends.