Benchmark equity indices ended higher on Friday, recovering modestly from the previous session's sharp decline as oil prices eased on hopes of a possible US-Iran truce. The Nifty50 rose 77.40 points, or 0.34%, to 23,140.50, while the Sensex gained 315.20 points, or 0.43%, to 73,895.74. However, the Nifty fell 5.8%, or 1,430 points, over the week, marking its seventh straight weekly decline and its longest losing streak since the February-March 2020 Covid-19 sell-off.

Financial and IT stocks remained under pressure during the week. Nifty Financial Services and Nifty IT fell 1.6% and 2.4%, respectively, with both sectors recording their fourth consecutive weekly declines.

Financial stocks faced selling pressure on concerns that proposed insurance commission caps could weigh on earnings, while IT stocks were hurt by concerns over higher US interest rates and AI-related risks. On Friday, Axis Bank, Asian Paints and Mahindra & Mahindra were the top Nifty 50 gainers. The Nifty MidCap 100 fell 0.14%, while the Nifty SmallCap 100 rose 0.14%. Realty and Auto were the top-performing sectors, while IT and Pharma declined the most.

Brent crude hovered around $105.50 a barrel as markets weighed hopes of a US-Iran truce against continued attacks by Houthi rebels on Saudi Arabia. Oil prices have remained a key market focus since US and Israeli strikes on Iran triggered the conflict in West Asia in late February, raising concerns over energy supplies and inflation.

The Indian rupee strengthened to 95.8125 per US dollar from 95.9550 on Thursday, supported by easing oil prices and a softer dollar. The currency was little changed over the week as pressure from the dollar and higher oil prices prompted central bank intervention to limit sharper losses.

Government bond yields eased from the day's highs after a 340-billion-rupee government bond auction was received slightly better than expected, prompting some traders to cover short positions. The yield on the benchmark 6.94%, 2036 government bond ended at 7.1194% from 7.1067% on Thursday, after touching a session high of 7.1410%.

Top Movers of the Day

Coal India gained 0.81% to ₹425.40 as thermal power demand remained firm and due to a positive research report by Jefferies projecting target price of ₹500.

InterGlobe Aviation rose 1.19% to ₹4,948 due to buy ratings assigned from Jefferies stating that the company has over 20% upside potential. The shares rose on expectations of capacity expansion and steady domestic passenger demand.

Axis Bank gained 2.93% to ₹1,221.30, supported by buying in banking stocks after the recent market weakness. The bank emerged as one of the leading gainers today, recovering from recent pressures tied to proposed IRDAI guidelines on bancassurance commissions.

Titan Company rose 0.81% to ₹4,871.50 as consumer-discretionary stocks attracted buying ahead of the festive season. The shares also gained after Morgan Stanley projected robust quarterly sales growth for the company, anticipating strong jewellery demand momentum.

Dr. Reddy's Laboratories gained 0.05% to ₹1,201 as investors shifted towards defensive pharmaceutical stocks amid broader market volatility.

Asian Paints rose 2.27% to ₹2,447, tracking a rebound as lower domestic input costs supported sentiment and on defensive buying ahead of the 3% price hike plan effective November 1, 2026.

Max Financial Services shares rebounded to rise today by 2.60% to ₹1,446.60 from sell-off in the last few sessions. The shares had experienced sharp sell off on the previous day after the Insurance Regulatory and Development Authority of India proposed changes to insurance distribution commission rules.

Oracle Financial Services declined 1.79% to ₹10,729 following news that parent company Oracle Corp issued a force majeure notice regarding a major data centre project in New Mexico on power supply delays.

Infosys declined 1.55% to ₹998.80 as higher US Treasury yields and expectations of tighter US monetary policy weighed on IT stocks.

PB Fintech fell 3.51% to ₹1,164.80 amid concerns over the potential impact of proposed changes to insurance distribution commissions.

ONGC declined 1.57% to ₹235.25 despite elevated global oil prices, amid concerns over possible changes to windfall tax rules.

Futures & Options
The Nifty September 2026 futures closed at 23,190, a premium of 49.50 points over the Nifty 50's cash-market close of 23,140.50. The Nifty 50 rose 77.40 points, or 0.34%, during the session, while the NSE's India VIX, a gauge of expected near-term volatility, fell 4% to 12.18.

HDFC Bank, Axis Bank and Reliance Industries were the most-traded individual stock futures contracts on the NSE. The September 2026 F&O contracts will expire on 29 September 2026.

Bonds
The yield on India’s benchmark 6.94%, 2036 government bond ended up at 7.1194% on Friday from 7.1067% on Thursday, after touching a session high of 7.1410%. Yields eased from the day’s high after the 340-billion-rupee government bond auction was received slightly better than expected, prompting traders to cover short positions.

The Reserve Bank of India set the 10-year bond auction cutoff at 98.58 rupees, 2 paise above the 91bps poll estimate. Trading volumes remained thin as investors stayed cautious amid uncertainty over domestic supply and overseas triggers. The 10-year US Treasury yield was around 5.15%, while Brent crude fell below $105 a barrel, limiting the selling pressure on domestic bonds.

Forex
The Indian rupee strengthened to 95.8125 per US dollar on Friday from 95.9550 on Thursday, supported by easing oil prices and a softer dollar after both had pressured the currency through the week. The rupee was little changed on the week, with central bank intervention helping limit sharper losses.

Oil prices fell about 2% on Friday but remained above $100 a barrel as investors weighed continued Houthi attacks on Saudi Arabia against the possibility of a US-Iran truce amid ongoing diplomatic efforts. Elevated energy prices have pushed global bond yields higher as investors expect central banks to keep borrowing costs elevated to contain inflation, putting pressure on emerging-market currencies and equities.

Crypto
The cryptocurrency markets remained volatile Friday as Bitcoin traded around $84,000, while Ethereum held above $2,700. Bitcoin fell 0.41% over the past 24 hours and was down 8.32% over the week, with its market capitalisation at about $1.68 trillion and daily trading volume around $36.5 billion.

Higher US Treasury yields above 5% have weighed on risk appetite, while a $14 billion-$16 billion options expiry on Friday has added to derivatives-related volatility. Traders are also monitoring the recent Bitget security exploit and renewed inflows into spot crypto ETFs. Despite Bitcoin's weakness, XRP, Cardano, Chainlink and Dogecoin were up double digits over the week.

US Stock Futures
US stock futures were little changed early Friday as Treasury yields continued to climb. S&P 500 futures fell 0.05%, while Nasdaq-100 futures edged higher. Dow Jones Industrial Average futures gained 3 points, or 0.01%.

The S&P 500 and Nasdaq Composite both finished flat on Thursday. The rise in Treasury yields this week has been driven by hawkish comments from Federal Reserve Governor Michael Barr, persistently high energy prices linked to the Iran war and stronger-than-expected purchasing managers’ data. Fed funds futures indicate a roughly 68% probability of a rate hike in October.

US Treasury Notes
US Treasury note yields held near multiyear highs early Friday as the global bond-market sell-off showed signs of slowing. The 10-year Treasury yield eased to around 5.175% after rising above 5.20% on Thursday from about 5.11% on Wednesday, while the 30-year yield stood at 5.468%, near levels last seen in 2004.

The rise in yields has been driven by growing expectations of another Federal Reserve rate hike in October, following hawkish comments from Fed Governor Michael Barr and other central bank officials. A strong purchasing managers’ report and persistently high oil prices linked to the Iran war have added to inflation concerns. Investors are also demanding higher compensation amid rising US government debt and uncertainty over the inflation outlook.

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