Stock Market Rally: Sensex Soars Over 950 Points; Nifty Near 24,900 — Key Drivers Behind Market Surge

A day after crashing over 600 points, the domestic equity benchmark, Sensex, jumped nearly 800 points in intraday trade on Friday. Nifty 50 gained almost 1% to reclaim the 24,900 level. The broader segment of the market also witnessed buying as the BSE Midcap and Smallcap indices rising nearly 0.50%.

The recovery was broad-based, with all sectoral indices on the Nifty trading in the green except for Pharma.

"On the domestic front, upbeat quarterly earnings, a surge in HSBC’s April Services and Composite PMI to a one-year high above the 60 mark, and optimism around a potential US-India trade agreement—potentially removing the 26% tariff imposed by former President Donald Trump on select goods—are adding to the positive outlook," said Vikas Jain, Head of Research at Reliance Securities.

Asian markets traded mostly higher on Friday as investors assess a slew of economic data from the region, while US Treasury bonds held onto gains from Thursday amid easing concerns over US fiscal issues that had unsettled markets earlier in the week.

The S&P 500 and Dow Jones were flat on Thursday, and the Nasdaq was up 0.28%.

South Korea’s Kospi fell 0.04%, Australia’s ASX 200 advanced 0.29%, and Taiwan’s Taiex was down 0.21%. The Nikkei was up by 0.68%, Hang Seng by 0.38%, and China by 0.05%.

In Japan, inflation accelerated at its fastest pace in two years, driven by rising food and energy prices. The core consumer price index, which excludes fresh food, rose 3.5% year-over-year in April, up from a 3.2% increase in March. The Japanese yen strengthened slightly in response while Topix index was up 0.69%.

"Overnight, US markets ended flat after the House of Representatives passed a tax bill. Additionally, better-than-expected US PMI data, falling long-term bond yields, and positive initial jobless claims figures supported sentiment," said Vikas Jain, Head of Research at Reliance Securities.

The Indian rupee opened 4 paise stronger at 85.97 against the US dollar on Friday, recovering from its previous close of 86.01 on Thursday. This slight appreciation comes amid various global and domestic economic factors influencing the currency markets.