Nifty rises 0.34% as crude eases and financials recover

Indian equities recovered in a volatile session after the previous day's sharp sell-off. Reports linked the rebound to softer crude, hopes of a US-Iran arrangement and value buying after the recent decline. Asian markets were mixed, leaving the domestic recovery dependent mainly on lower oil and a reversal in financial-sector pressure.

Axis Bank, Bajaj Auto, Mahindra & Mahindra and HCL Technologies were among the stocks reported higher during the session. Infosys and Max Healthcare were among the reported laggards. The available market reports did not provide a complete final list of the stocks that contributed most to the authoritative index close.

The strongest sectoral recovery came in NBFCs and insurance-related shares after the group had been hit by the previous session's reaction to IRDAI proposals on commissions and expense limits. The market's interpretation on Friday appeared less severe, with financial stocks recovering, although the proposals remain subject to consultation and could change before final rules are issued.

Auto shares benefited from the reported easing in crude prices and from the broader rebound after Thursday's selling. Cement and materials shares also advanced, but the material available does not identify a single sector-wide announcement or company-specific catalyst for that move. Oil and energy stocks lagged as crude remained elevated despite its day-on-day decline, while metals and telecom and internet shares underperformed without a clearly reported common trigger.

The Reserve Bank of India was reported to have supported the rupee through likely dollar sales before the local spot market opened. The central bank was also expected to set the cut-off yield for the government's benchmark 2036 bond near 7.15%, according to a Reuters poll of 11 traders. Separately, the RBI has announced Rs 1 lakh crore of open-market security sales for September, with a further Rs 25,000 crore tranche scheduled for September 28. That liquidity operation matters for banks and bond markets because it withdraws surplus liquidity while government borrowing remains active.

Sebi approved a framework enabling depository receipts against REIT and InvIT units, potentially widening access to foreign capital for those vehicles. The regulator also approved rules allowing portfolio managers to invest in foreign securities and direct mutual-fund plans, and expanded the range of exchange-traded commodity derivatives available to foreign portfolio investors. A common advertising code for several regulated entities was also approved, with prior approval removed for most advertisements but retained for celebrity endorsements.

The available material reported no fresh CPI, IIP, GST, trade or PMI release on September 25. It also reported no finance ministry announcement affecting the session. IRDAI's consultation on insurance distribution costs remained a market issue rather than a final policy decision; comments are invited until October 25.

Global cues were mixed. Japan's Topix rose while Hong Kong's Hang Seng fell, and US equity futures were little changed in the available Asian-session update. The reported improvement in sentiment came as Brent eased on hopes of a phased US-Iran arrangement, although the oil benchmark remained above $105 a barrel and therefore continued to matter for India's import bill and inflation sensitivity.

US Treasury yields remained elevated, supporting the dollar and weighing on risk appetite. Gold also softened as the stronger dollar and expectations of higher US interest rates reduced demand for the non-yielding asset. For Indian equities, the combination of high US yields, a fragile rupee and expensive crude remains a constraint on any recovery, even when domestic financials and autos rebound.

The latest available institutional-flow data, for September 24, showed foreign investors as net sellers of Rs 5,027.36 crore and domestic institutions as net buyers of Rs 4,301.18 crore. Final FII and DII figures for September 25 were not available in the material reviewed. The divergence explains why domestic buying could cushion the market without fully removing the pressure from foreign outflows.

Corporate news was mixed. Welspun Corp gained attention after reporting a $412.5 million pipe order through its US subsidiary. Vascon Engineers received a Rs 660.79 crore work order from Qualcomm India for an office facility in Bengaluru. Waaree Energies secured a 2 GW solar module supply order and guided to Rs 7,500 crore of EBITDA for FY27.

ESDS Software Solution was reported to have hit a 5% lower circuit after weak first-quarter FY27 results, although the available reports differed on the result details. One report said profit more than halved, while another reported consolidated profit of Rs 29.3 crore, up 14% year-on-year from Rs 25.7 crore, with revenue rising 7.3% year-on-year to Rs 133.7 crore. The discrepancy is material, and no single result figure should be treated as definitive from the available material.

Transport Corporation of India was reported to be considering a share buyback, while SpiceJet said it would introduce 22 new flights for the Durga Puja period. No ratings action or management change with a clear market-wide relevance was identified.

The primary market was active, with four mainboard issues opening: AceVector, the parent of Snapdeal; Orient Cables; German Green Steel and Power; and Runwal Enterprises. Together, the issues were reported to be seeking about Rs 1,776 crore. Five SME issues also opened, collectively seeking around Rs 177.16 crore. No IPO closing or listing was reported for September 25.

Adani Enterprises recorded the day's reported block transaction, with 86 lakh shares changing hands for Rs 2,498.30 crore. The identities of the buyers and sellers were not disclosed.