Markets recover on Friday but volatility to continue amid US-EU trade dispute

New Indian Express

23-05-2025

India's equity markets rebounded on Friday from sharp losses earlier in the week. The benchmark indices -- BSE Sensex and NSE Nifty -- each gained nearly 1%, buoyed by positive global cues and strong buying in FMCG stocks. At close, the Sensex rose 769.09 points (0.95%) to 81,721.08, while the Nifty climbed 243.45 points (0.99%) to 24,853.15.
The broader market mirrored the benchmark's performance, with the BSE Midcap and Small cap indices advancing 0.5% and 0.45%, respectively. Sectorally, Nifty FMCG outperformed, surging 1.6% on the back of upbeat earnings from index heavyweight ITC. Nifty Private Bank and Nifty IT each clocked gains of 1%, while Nifty Bank added 0.8%.
"Markets quickly rebounded after a subdued opening, as short-covering helped benchmark indices stay in positive territory thereafter. The market has been volatile throughout the week, as concerns over US fiscal health due to rising debt and interest rates seen unchanged weighed on sentiment," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Vinod Nair, Head of Research, Geojit Investments Limited, said that the FMCG stocks benefited from the early and above-normal monsoon forecast, while IT stocks saw a rebound following a healthy correction. "Optimism around a potentially record-high dividend from the RBI is boosting hopes for fiscal consolidation, reflected in falling Indian bond yields," he added.