The Indian stock market bounced back on Friday, March 20, after a sharp decline in the previous session. The Nifty 50 gained 243.55 points (1.06%) to close at 23,246.70, while the BSE Sensex, which had fallen nearly 2,500 points on Thursday, staged a partial recovery. The rebound comes amid easing oil prices, positive global cues, and broad-based buying, particularly in IT stocks. Investor sentiment was lifted after Thursday’s sharp sell-off, which saw the Sensex and Nifty fall 3.26%, marking their worst single-day decline since June 2024.
One of the key triggers for Thursday’s fall was a surge in crude oil prices, following attacks on energy infrastructure in the Middle East. Brent crude had spiked to $119.13 per barrel (roughly ₹9,760 per barrel) before easing to $106.87 (₹8,760 per barrel), down 1.63%, while WTI crude fell 1.92% to $93.72 (₹7,683 per barrel). Global efforts to secure shipping routes and increase oil supply, along with reassuring comments from world leaders, helped calm markets. U.S. President Donald Trump stated he had urged Israeli Prime Minister Benjamin Netanyahu to avoid further attacks on Iranian energy infrastructure. Israel’s Prime Minister also suggested that no additional strikes on oil and gas facilities were planned.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, “There is potential for the market to move up since hope of de-escalation is back. Israel PM’s remarks yesterday indicate that there won’t be further attacks on Iran’s oil and gas infrastructure. This has cooled Brent crude to $106 (₹8,760) from the peak of $118 (₹9,680) yesterday.” Broad-based buying drove Friday’s recovery, with investors looking to pick up stocks at relatively cheaper levels. The Nifty IT index emerged as one of the biggest gainers, rising 1.77% (506.40 points) to 29,086. Most frontline IT stocks traded in the green. Other major gainers included Tata Steel, Tech Mahindra, SBI, Larsen & Toubro, Power Grid, Reliance Industries, Adani Ports, ICICI Bank, and Axis Bank.However, some stocks continued to face pressure. HDFC Bank fell over 1%, extending its recent weakness.Analysts suggest that continued easing of geopolitical tensions and stable oil prices could support further recovery in the near term.