Sensex Opens Higher Despite Fuel Price Hike, IT Stocks Rebound

Benchmark stock market indices opened higher on Friday despite the government increasing petrol and diesel prices amid the ongoing energy crisis triggered by the West Asia conflict.

At around 9:46 am, the BSE Sensex was up 344.19 points or 0.46% at 75,744.91, while the NSE Nifty50 gained 121.20 points or 0.51% to trade at 23,810.

The opening gains came a day after markets witnessed a sharp recovery driven by short covering and hopes of possible measures to support the rupee and attract capital inflows.

However, broader markets continued to remain under pressure. The Nifty Midcap100 index declined 0.16%, while the Smallcap100 index fell 0.73%, indicating caution among investors outside benchmark counters.

Among frontline stocks, Tata Motors PV, Adani Enterprises, Power Grid, Adani Ports & Special Economic Zone and JSW Steel emerged as top gainers in early trade.

IT Stocks Rebound

Information technology shares witnessed a rebound after facing heavy selling pressure in recent sessions. The Nifty IT index rose 2.29% in early trade, emerging as one of the strongest-performing sectors.

Analysts said the recovery largely reflected short covering and bargain buying after the recent correction in technology counters. The sector had remained under pressure amid concerns around global AI-led disruptions and sustained foreign institutional investor selling.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets continue to differentiate sharply between earnings winners and losers.

According to him, strong quarterly earnings are witnessing double-digit stock gains, while weak results are being punished with steep declines.

He also pointed out that the market continues to favour pharmaceutical companies while IT stocks remain under structural pressure.

Fuel Price Hike

The government increased petrol and diesel prices by ₹3 per litre across metro cities, marking the first fuel price hike in four years. CNG prices were also raised by ₹2 per kilogram.

The move comes amid rising global energy prices and prolonged disruptions linked to the West Asia conflict.

According to Vijayakumar, the government appears to be taking a calibrated approach by opting for gradual increases rather than large hikes that could trigger a sudden spike in inflation.

He said the move indicates authorities are trying to balance fiscal concerns while limiting pressure on consumers and the broader economy.

Analysts believe fuel prices and their impact on inflation will remain a key factor for markets over the coming weeks.

Metal, PSU Bank Shares Under Pressure

While benchmark indices traded higher, sectoral trends remained mixed. Metal and PSU banking stocks remained under pressure, with Nifty Metal and Nifty PSU Bank indices trading in the red.

In contrast, auto stocks remained strong, with the Nifty Auto index gaining 1.11%.

Market participants said sectoral rotation continues to remain visible, with investors moving selectively across segments depending on earnings visibility and macroeconomic developments.

The market is also likely to remain sensitive to global oil prices and developments surrounding the West Asia conflict.

Rupee Weakness Continues

The Indian rupee opened weaker once again and slipped 10 paise to 95.86 against the US dollar. The domestic currency has remained under pressure due to elevated crude oil prices and continued foreign fund outflows.

Vijayakumar said Thursday's nearly 790-point rally in the Sensex was largely driven by short covering as FIIs were heavily positioned on the bearish side.

He added that markets are currently reacting to speculation around possible measures to support the rupee and improve capital inflows, although clarity on such initiatives is still awaited.

Investors will also closely track earnings announcements from companies including SAIL, Tata Steel, Amber Enterprises, Balrampur Chini, Cochin Shipyard, Hindustan Copper, NCC and NHPC later in the day.