Sensex, Nifty Close Higher Amid Mixed Global Cues; Auto Stocks Lead

Indian equity benchmarks closed in the green on Friday, extending gains for a second straight session, as buying in auto and broader market stocks outweighed caution from mixed global cues. The BSE Sensex settled 274 points higher, while the Nifty 50 closed comfortably above the 24,300 mark, according to provisional data from stock exchanges.

The session saw the broader indices outperform their large-cap peers, a trend that market participants said reflected improving risk appetite among domestic investors. However, gains were capped by uncertainty in global markets, where investors continued to assess interest rate trajectories and corporate earnings.

Auto Stocks Drive the Rally

Auto stocks emerged as the clear leaders of the day, with sectoral indices posting robust gains. Traders attributed the strength to expectations of healthy demand recovery and easing input cost pressures, though no specific company announcements were cited during the session.

The rally in auto shares helped offset weakness in select heavyweight stocks, keeping the indices afloat despite a tepid start. Analysts noted that the sector has been a consistent driver of market momentum in recent weeks, supported by improving domestic sales data.

Broader Markets Outperform

The midcap and smallcap indices rose more than the benchmarks, underlining the breadth of the uptick. This broader participation is often seen as a sign of underlying strength, though some traders cautioned about stretched valuations in select pockets.

Market breadth remained positive, with more stocks advancing than declining on the BSE. The Nifty's movement above the key psychological level of 24,300 was watched closely by traders, who see it as a near-term support zone.

Mixed Global Cues Weigh

Global cues were mixed through the day, with Asian markets trading unevenly and European indices opening without a clear direction. Investors globally are grappling with uncertainty over monetary policy, particularly after recent data hinted at inflationary pressures in major economies.

Foreign institutional investors have been net sellers in recent sessions, though domestic institutional buying has largely absorbed the outflows. This tug-of-war has kept the market range-bound, with dips being bought and rallies facing resistance at higher levels.

Coal India in Focus

Coal India was among the notable movers, though specific details of its price action were not immediately available. The stock has been in focus amid broader discussions on energy security and production targets, with the company's output numbers being tracked by investors.

State-owned enterprises have seen mixed trading in recent weeks, with some gaining on policy support and others lagging on profit-booking. The coming sessions will likely see continued stock-specific action as the earnings season progresses.

Looking ahead, market participants will keep a close watch on global cues, particularly the US Federal Reserve's commentary and crude oil prices, which have a direct bearing on India's inflation and fiscal outlook. Domestic institutional flows and the progress of the monsoon will also be key determinants of sentiment in the near term.