Sensex and Nifty opened higher on Friday, extending gains from the previous session, as falling US Treasury yields and a regulatory reversal on the closing auction session lifted investor sentiment.
The Nifty 50 and BSE Sensex logged their biggest single-day gains in four months on Thursday, supported by a rebound in global AI-related stocks and optimism driven by corporate earnings, according to a Reuters report.
Benchmark stock index Sensex rallied 1,534 points, or over two per cent, to close at a three-week high on Thursday, driven by heavy buying in banking, IT and Reliance Industries shares amid easing crude oil prices.
The 30-share BSE Sensex jumped 1,533.72 points, or 2.11 per cent, to settle at 74,315.61, near the day’s high. During the session, it surged 1,548.4 points, or 2.12 per cent, to 74,330.29.
The 50-share NSE Nifty climbed 374.65 points, or 1.66 per cent, to close at 22,997.35, its highest level since September 25.
The Securities and Exchange Board of India (Sebi) said on Thursday it would use volume-weighted average prices from the final 30 minutes of regular trading to settle expiring stock and index derivatives contracts. The move reverses its earlier decision to use the closing auction session (CAS) following pushback from traders.
Global brokerage Jefferies said the move should reduce expiry-day volatility under CAS, benefiting brokers whose orders remain below pre-CAS levels.
Meanwhile, longer-dated US Treasury yields fell to their lowest levels since September amid concerns over slowing AI growth and expectations that the Federal Reserve would keep interest rates unchanged at its next meeting.
However, the recovery could remain fragile, with elevated oil prices and inflation risks likely to keep investors cautious, two analysts said.
Brent crude futures hovered around $106 per barrel as investors weighed risks in the Middle East and possible US steps to ease restrictions on the world’s “shadow fleet” of tankers linked to Iran.