Indian equity benchmarks recovered sharply from intraday lows, supported by FMCG and banking stocks.
late-session buying lifts benchmarks after volatile start
Domestic equity markets staged a strong intraday recovery on Friday as benchmark indices reversed early losses to close in positive territory. The Sensex ended the session 266 points higher at 83,580, while the Nifty50 rose 51 points to settle at 25,694, close to the psychological 26,700 level.
The rebound came after a volatile start to the session, during which both indices slipped to their respective intraday lows amid cautious investor sentiment. The Sensex had fallen sharply earlier in the day before rebounding by as much as 687 points from the session’s bottom. The Nifty50 followed a similar trajectory, touching a low of 25,491.90 before climbing to an intraday high of 25,703.95 as buying interest emerged in heavyweight stocks.
Gains were driven largely by strong performances in select index heavyweights, particularly in the FMCG and private banking spaces. Stocks such as ITC, Kotak Mahindra Bank, ICICI Bank, Bharti Airtel, Hindustan Unilever and Reliance Industries attracted steady buying, helping lift overall market sentiment in the second half of the trading session.
Market participants noted that investors used the early dip as an opportunity to accumulate quality large-cap stocks, especially those that had underperformed in recent sessions. The recovery reflected selective buying rather than broad-based risk appetite, as traders remained mindful of global cues and domestic macroeconomic signals.
sectoral trends mixed as policy clarity and stock-specific action dominate
Sectoral performance was mixed, with nine of the fifteen sectoral indices on the National Stock Exchange ending the day in positive territory. The FMCG sector emerged as the top performer, with the Nifty FMCG index gaining over two percent, supported by renewed interest in defensive consumption-oriented stocks. Consumer durables, private banks, oil and gas, realty, and financial services indices also posted moderate gains ranging between 0.4 percent and 0.9 percent.
In contrast, auto, information technology, pharmaceutical, and public sector bank stocks faced selling pressure. IT stocks underperformed as investors remained cautious about global demand trends and currency movements, while auto stocks saw profit booking after recent gains.
Broader markets lagged behind frontline indices. The Nifty Midcap 100 index ended largely flat, while the Nifty Smallcap 100 index declined by around 0.3 percent, indicating continued risk aversion toward mid- and small-cap stocks. Market breadth remained negative, with more stocks declining than advancing on the exchange.
Policy clarity from the Reserve Bank of India also influenced sentiment. The central bank’s Monetary Policy Committee, led by Governor Sanjay Malhotra, unanimously decided to keep the repo rate unchanged at 5.25 percent while maintaining a neutral policy stance. The decision marked the conclusion of the final policy meeting of the current financial year.
The governor highlighted the resilience of the global economy in 2025, citing factors such as trade front-loading, a softer-than-expected impact of tariffs, fiscal support, and accommodative monetary conditions. Investors interpreted the policy outcome as supportive of stability, though not immediately growth-stimulative.
Stock-specific action added momentum to the session. Shares of Life Insurance Corporation of India surged sharply, recording their best single-day gain in nearly nine months after the company reported strong December-quarter earnings. The stock rose as much as 7.68 percent during the session, driven by higher-than-usual trading volumes and positive earnings sentiment.
LIC reported a significant year-on-year increase in consolidated net profit for the October–December quarter, alongside strong growth in net premium income. The results boosted confidence in the stock and contributed positively to overall market sentiment.
Meanwhile, select cigarette manufacturers such as Godfrey Phillips and VST Industries also saw notable gains following reports of price hikes across cigarette packs. Market participants reacted positively to expectations of improved margins resulting from higher pricing.
Among Nifty50 constituents, ITC emerged as the top gainer, rising over five percent, while Kotak Mahindra Bank, Bajaj Finance, Bharti Airtel, Power Grid, and Titan posted gains between one and three percent. On the losing side, stocks such as HDFC Life, Tech Mahindra, TCS, SBI Life, Tata Motors PV, Bajaj Auto, and Adani Ports weighed on the index.
Overall, the session reflected a cautious yet resilient market mood, with investors favouring large-cap stability and stock-specific opportunities while remaining selective amid mixed sectoral cues and broader market underperformance.
