Indices snap four day losing streak as global cues, FII buying lift sentiment

Domestic equity benchmarks ended Friday with solid gains, snapping a four day losing streak as sentiment turned upbeat. Global risk appetite improved after softer than expected U.S. inflation data revived hopes of Federal Reserve rate cuts.

Markets also drew support from fresh foreign institutional investor buying, a firmer rupee against the US dollar and the signing of the India Oman Free Trade Agreement. The Nifty closed above the 25,950 mark, led by strength in auto and healthcare stocks.

The S&P BSE Sensex climbed 447.55 points or 0.53% to 84,929.36. The Nifty 50 index added 142.55 points or 0.55% to 25,958. In the previous four sessions, the Sensex slipped 0.92% while the Nifty declined 0.89%.

Bharat Electronics (up 2.37%), Reliance Industries (up 1.34%) and HDFC Bank (up 0.64%)

In the broader market, the S&P BSE Mid-Cap index jumped 1.26% and the S&P BSE Small-Cap index added 1.25%.

The market breadth was strong. On the BSE, 2,731 shares rose and 1,445 shares fell. A total of 170 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 1.90% to 9.52.

India-Oman Trade Agreement:

India and Oman have entered into a Comprehensive Economic Partnership Agreement aimed at deepening economic engagement between the two countries. The pact was signed in Muscat during Prime Minister Narendra Modi's visit and is expected to significantly lift bilateral trade and investment flows. The agreement also reinforces India's growing economic footprint in the Middle East.

Parliament's Winter Session Concludes:

Parliament's 19-day winter session concluded on Friday with both the Lok Sabha and the Rajya Sabha adjourned sine die. Lok Sabha Speaker Om Birla said the House recorded productivity of about 111% across 15 sittings.

Rajya Sabha Chairman CP Radhakrishnan said the Upper House functioned for around 92 hours and achieved 121% productivity. The session saw the introduction of 59 private members' bills and featured high quality debates, including special discussions on the 150th anniversary of Vande Mataram and on election reforms.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 0.44% to 6.599 compared with the previous session close of 6.570.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 89.2500 compared with its close of 90.2000 during the previous trading session.

MCX Gold futures for 5 February 2025 settlement slipped 0.50% to Rs 133,850.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.20% to 98.65.

The United States 10-year bond yield added 0.68% to 4.142.

In the commodities market, Brent crude for February 2025 settlement fell 35 cents or 59% to $59.47 a barrel.

Global Markets:

European market advanced as a hectic week of economic data and central bank decisions comes to an end.

On Thursday, the European Central Bank (ECB) kept interest rates unchanged at 3.75%, while Norway's central bank held rates steady at 4% and Sweden's central bank left its key policy rate unchanged at 1.75%.. In contrast, the Bank of England (BoE) trimmed interest rates, with a small majority of the bank's nine-member monetary policy committee (MPC) opting for a 25 basis points cut, bringing the base rate down to 3.75%.

European traders will be watching news from France, where lawmakers are set to hold crunch budget talks. A joint committee of politicians is scheduled to negotiate the terms of the 2026 spending plan on Friday.

Most Asian markets ended higher on Friday as investors assessed the latest Bank of Japan decision.

The Bank of Japan raised its benchmark interest rate by 25 basis points to 0.75%, marking its highest level since 1995.

Japan's consumer inflation rate dropped to 2.9% in November, government data showed Friday. Core inflation, which strips out prices of fresh food, remained unchanged from 3% in October.

The annual inflation rate in the U.S. eased to 2.7% in November 2025, marking its lowest level since July. The reading came in below market expectations of 3.1% and was also lower than the 3% recorded in September, offering further relief on the inflation front.

Overnight in the U.S., the S&P 500 snapped a four-day slide Thursday, boosted by lighter-than-expected inflation data that brightened the outlook for lower interest rates in 2026 and blowout guidance from chipmaker Micron Technology.

The broad market index jumped 0.79% to settle at 6,774.76, while the Nasdaq Composite advanced 1.38% to 23,006.36. The Dow Jones Industrial Average gained 65.88 points, or 0.14%, to end the day at 47,951.85.

New Listing:

Shares of ICICI Prudential Asset Management Company were at Rs 2,586.70 on the BSE, representing a premium of 19.48% compared with the issue price of Rs 2,165.

The stock debuted at Rs 2,606.20 on the BSE, a premium of 20.38% over the issue price. The stock has hit a high of 2,662 and a low of 2,573.90. On the BSE, 36.34 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Reliance Industries advanced 1.34% after the company's FMCG arm, Reliance Consumer Products (RCPL) has acquired a majority stake in Udhaiyams Agro Foods (Udhaiyams), to expand its branded staples portfolio.

Shriram Finance rallied 3.74% after its board approved raising Rs 39,617.98 crore from MUFG Bank through a preferential allotment. The company will issue 47,11,21,055 equity shares, representing a 20% stake, to MUFG at an issue price of Rs 840.93 per share, a discount of 3.25% to the previous close of Rs 869.20 on Thursday, 18 December 2025.

Refex Industries rose 0.22%. The company said its subsidiary, Venwind Refex Power (VRPL), has signed a contract with a leading independent power producer for the supply of wind turbine generators (WTGs) aggregating 148 MW.

Park Medi World shed 0.23%. The company said that it has entered into agreements to acquire whole of existing shareholding of KP Institute of Medical Sciences (KPIMS), in an all-cash transaction amounting Rs 245 crore.

BLS International Services rallied 2.07% after the Delhi High Court quashed the debarment order imposed by the Ministry of External Affairs (MEA), which had barred the company from participating in tenders for two years.

Apollo Micro Systems hit an upper circuit of 5% after the company said that its subsidiary IDL Explosives has received industrial license for manufacturing of widely used explosives HMX and TNT.

Precision Electronics jumped 9.98% after the company announced that it has secured an order worth Rs 2.16 crore from a private entity operating in the defence segment.

Ather Energy surged 5.72% after the electric two wheeler maker announced plans to enter the auto insurance distribution space. The company said it will set up a wholly owned subsidiary that will operate as a Corporate Agent and offer auto insurance policies in partnership with multiple insurers across India.

Ola Electric Mobility hit the 10% upper circuit at Rs 34.40 after confirming that its promoter has completed a one time, limited stake monetisation. The stock rebounded after a sharp 16.34% fall over the previous three sessions, during which promoter Bhavish Aggarwal sold 2.19% equity worth Rs 324.27 crore. The company said the sale was undertaken solely to repay a Rs 260 crore promoter level loan and to release all pledged shares, eliminating promoter pledges.

NBCC (India) jumped 4.94% after the company announced that it has secured an order worth Rs 179.37 crore from the Indian Institute of Management (IIM), Sambalpur.

GPT Infraprojects rose 0.79% after the company announced that it has secured an order worth Rs 1,804.48 crore from the Municipal Corporation of Greater Mumbai (MCGM).

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