Sensex climbs 500 points, but Nifty gains marginally. What lies ahead?

The Indian stock market opened with a sharp divergence between the benchmarks, with the Sensex rising around 0.7%, while the Nifty posted only marginal gains.

Sensex jumped over 500 points to begin the session at 76,657, while Nifty 50 rose over 37 points to open at 23,911 on Friday. Broader markets also traded in the green, with Nifty Midcap 100 recording only marginal gains and Nifty Smallcap 100 rising 0.35%.

Bajaj Finserv shares jumped around 2% to lead gains on Sensex, while those of BEL, Trent, IndiGo, Adani Ports, Bajaj Finance and Titan rose over 1% each. Bucking the trend, Axis Bank, Bharti Airtel, ICICI Bank and Eternal shares were trading with marginal losses.


All sectoral indices on NSE were trading with marginal gains and losses. The overall market breadth was positive, with NSE seeing 1,881 advances against 1,038 declines, while 102 stocks remained unchanged.

What lies ahead for Dalal Street?

Today’s market movement comes while the flow of positive and negative news continues, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that the latest CMIE report of a sharp 97% surge in private investment in Q1 FY27 over Q1 FY26 is an indication of a sharp turnaround in capex. After a long time, private capex is improving and this bodes well for economic growth, going forward.

However, the biggest negative is the rising bond yields, globally, according to the analyst. The U.S. 10-year yield continues to hover around 4.8%. In Japan the 10-year yield is at a 30-year high of 3%. In the UK, the 30-year yield is at 6%. In India, too, the 10-year yield is close to 7%. “Rising bond yields are negative for equity markets. Higher inflation and high possibility of interest rates going up will make fixed income investments more attractive. Prospects of capital flight from emerging markets also are bright. These factors will weigh on equity markets,” he said.

However, these negative factors are being countered by the positive news about the Indian economy, and particularly impressive are the ongoing high frequency data regarding GST collections, automobile sales and credit growth, Vijayakumar noted, adding that this complex macro construct of positive and negative factors will keep the market volatile in the near-term.

Technical view on Nifty

Nifty’s upswings in the previous session failed to signal strength, while the slippages also eased without penetrating the downside marker of 23,860, said Anand James, Chief Market Strategist at Geojit Investments.

“We are inclined to retain this downside marker and expect a stretch towards 23,960-24,080 and not much beyond. Meanwhile, the 24,150-24,215 region will continue to be our hurdle to cross before strength is confirmed,” the analyst further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)