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The Indian equity market started Friday’s session in a cautiously positive mood. The BSE Sensex and Nifty 50 opened higher than their previous close level, indicating a gap-up opening. At 9:18 am, the Sensex is up 55 points at 77,983. The Nifty 50 is trading just about 24,350, with initial gains looking to be marginal. But the market is telling a different story under the surface. Financials, autos and domestic-focused sectors led the way at the open today, unlike recent sessions where technology stocks led the way for benchmark indices.
IT stocks also suffered badly but the market hung on to its gains, suggesting investors are moving their funds into sectors seen as winners for the improved domestic setting. The shift is something to follow closely in the days ahead.
Financial Stocks Emerge as IT loses steam
The biggest surprise of the morning was the strength in financial stocks.
Bajaj Finance jumped nearly 3%, while Bajaj Finserv gained over 2.7%. Axis Bank, SBI and ICICI Bank also traded higher, helping both the Bank Nifty and financial services indices to outperform the broader market.
The trend follows investors recalibrating sectoral leadership after recent earnings and shifting global interest rate expectations.
IT stocks, in the meantime, continued to face heavy pressure.
Infosys dropped by over 3%, while TCS, HCL Technologies and Tech Mahindra also fell heavily. The Nifty IT index was the biggest drag on the market, declining by more than 3%.
Such losses would typically have weighed heavily on benchmark indices. But strong buying in lenders and autos kept the slide from getting deeper.
Autos Offer Another Layer Of Support
Shares of automakers also did well.
Mahindra & Mahindra rose almost 2% and Maruti Suzuki continued to gain. Investors still had a taste for domestic consumption plays while healthcare, metals and PSU banks were also trading in positive territory.
At the sectoral level, the picture was clear:
Financial services are up about 0.7%
Auto jumped over 0.8%
Pharma was up almost 0.7%
Metals up more than 0.5%
IT was the biggest loser.
The divergence suggests that investors are becoming more selective and are not just buying the market broadly.
Three Global Tailwinds Boosting Market Sentiment
In addition to sector rotation, external factors also helped boost market sentiment.
The Indian rupee eased to 95.39 to the dollar – its highest in three weeks on account of dollar weakness, intervention by the RBI and easing crude prices. Oil prices for the May delivery of Brent shed as much as around $88 a barrel; WTI was trading lower than $83 to reduce some sting to the importing nation. Lower crude prices help ease inflationary pressures and improve India’s trade outlook.
Emerging markets also saw better risk appetite as the US dollar softened following the shift in expectations for US monetary policy.
What Investors Should Watch Next
The Friday opening indicates that the market is going into a fresh phase where leadership may shift from technology to domestic sectors like banking, finance, automobiles and healthcare.
If crude oil remains subdued and the rupee stable, financial stocks could continue to attract investor interest. But any new spike in global tensions or oil prices could change sentiment fast.
The biggest message for now is not the small gain in the Sensex but a changing mix of stocks making Dalal Street resilient despite weakness in one of its largest sectors.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
