The Indian stock market rebounded with vigor on Friday, shedding its three-day losing trend thanks to a surge in financial stocks. This performance followed the Reserve Bank of India’s decision to relax provisioning norms, specifically for project financing—sparking optimism among investors despite looming geopolitical concerns.

1. Strong Finish for Indian Markets

Friday saw the BSE Sensex soar by 1,046.30 points, a robust 1.29% increase, closing at 82,408.17. Similarly, the NSE Nifty rose by 319.15 points, also a 1.29% jump, settling at 25,112.40. Such gains were largely attributed to diminishing concerns over Middle Eastern tensions, as dialogues between the U.S. and Iran signaled a possible respite from immediate military escalation.

2. Impact of Eased RBI Norms

Vinod Nair, Head of Research at Geojit Investments, noted that the RBI’s policy shift favored the domestic markets, prompting a correction in crude prices and enhancing foreign investor sentiment. There’s an observable uptrend in rate-sensitive sectors such as Finance, Auto, and Realty, further fueled by diminishing inflation pressures and improved consumer spending expectations.

3. Global Markets Recap

Comparatively, the U.S. markets displayed caution, with the S&P 500 and Nasdaq recording slight declines amid escalating tensions in the Middle East. Nonetheless, the Dow Jones edged out relatively unscathed with a modest gain. Similarly, European markets showed resilience, ending on a positive note, reflecting steadier investor sentiment and potential U.S. diplomatic moderation.

4. Technical Analysis: Nifty’s Next Moves

Senior Technical Analyst at LKP Securities, Rupak De, suggests that after reclaiming the 21-day EMA, the Nifty is likely to sustain its rally. Analysts are optimistic, proposing a strategic ‘buy on dips’ approach as long as the index stays above 24,850, with expectations of upward momentum beyond 25,350.

5. Active Stocks Leading the Charge

Friday’s session spotlighted Trent, BEL, and Reliance Industries among the highest in value turnover, reflecting significant market activity and attention towards these counters. Similarly, on the volume front, stocks like Vodafone Idea and Vishal Mega Mart saw substantial traded shares.

6. Stocks in High Demand and Those Struggling

Investors showed significant buying interest in stocks like Waaree Energies and Premier Energies, while others like Concord Biotech faced selling pressure. Additionally, a noteworthy observation was that over 83 stocks achieved their 52-week highs, signaling strong performance in those areas.

7. Sentiment Overview

Overall, market sentiments appeared bullish. Of the 4,094 stocks traded on the BSE, a majority witnessed advances compared to declines. This bullish sentiment, as well as active participation in both large-cap and mid-cap stocks, suggests a positive outlook for the forthcoming week.

According to The Economic Times, these market movements provide a comprehensive landscape for investors and analysts anticipating Monday’s market dynamics.