Benchmark stock indices closed higher on Friday, despite ongoing concerns related to national elections and foreign investor sell-offs, which have impacted market sentiment. The S&P BSE Sensex rose by 0.36% to settle at 72,664.47, while the NSE Nifty50 gained 0.44% to reach 22,055.20 points by the closing bell.
However, despite Friday's gains, this week marked the worst performance for these indices since mid-March, with both witnessing declines of approximately 1.8%. The volatility index surged sharply during the week, reaching 18.47, its highest level in 19 months.
Foreign investors have been actively selling Indian shares this month, with outflows totaling $1.2 billion so far. This trend represents the highest Foreign Portfolio Investment (FPI) sell-off since January, impacting overall market sentiment.
Anita Gandhi, founder and head of institution at Arihant Capital Markets, attributed foreign investors' withdrawals to perceived higher risks and valuations in India, coupled with the absence of immediate rate cuts in the U.S. Additionally, the strong performance of Chinese indices has diverted foreign funds away from the Indian market, according to Santosh Pandey, president and head of Nuvama Professional Clients Group.
Despite the challenges, nine out of the 13 major sectors ended in the green on Friday. Energy stocks closed 1.64% higher, with Bharat Petroleum Corp leading the charge with a 4.48% increase, buoyed by positive quarterly results that outshone its peers. BPCL emerged as the top gainer on the Nifty50 index for the day, surging by 5% and contributing to the overall positive finish for the market.
