Sensex rose over 550 points as Nifty crossed the 24,300 mark.
Softer US jobs data eased Fed rate hike fears, boosting global risk appetite.
IT and metal stocks led gains, while lower crude supported market sentiment.
Indian benchmark indices opened sharply higher on Friday, tracking gains across Asian markets after softer-than-expected US jobs data eased concerns over additional Federal Reserve rate hikes and improved appetite for emerging-market assets.
At 9:30 am, the BSE Sensex was up 552.24 points, or 0.71%, at 78,062, while the NSE Nifty 50 gained 170.75 points, or 0.71%, to trade at 24,346.45.
1 June 2026
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Market breadth remained positive, with 1,962 stocks advancing, 860 declining and 149 remaining unchanged.
Among sectoral indices, all except Nifty Auto and Nifty PSU Bank traded in the green. Nifty Metal rose 1.63% to lead the gains, followed by Nifty IT, which advanced 1.45%. The broader market also remained firm, with the Nifty Midcap 100 and Nifty Smallcap 100 rising 0.4% and 0.5%, respectively.
Fed Relief Boosts Risk Appetite
Investor sentiment improved after a softer US jobs report reduced expectations of a near-term interest rate hike by the Federal Reserve.
US job growth slowed sharply in June, while payroll figures for the previous two months were revised lower, pointing to a cooling labour market. The data prompted investors to scale back expectations of tighter US monetary policy, improving the outlook for capital flows into emerging markets such as India.
Lower US interest rates generally support emerging-market equities by making risk assets relatively more attractive.
Global Markets Rally
Global markets also supported domestic sentiment after technology stocks rebounded in the US following two sessions of sharp losses linked to concerns that the artificial intelligence-driven rally had become overstretched.
The MSCI Asia Pacific Index climbed 1.1%, with gains across all 11 sector groups. Nasdaq 100 futures rose 0.6%, while benchmark indices in China, Hong Kong and Japan traded higher.
South Korea's Kospi index advanced around 3%, recovering after recent volatility. Samsung Electronics jumped 6.5% following reports that Anthropic was in discussions with the company to manufacture a customised artificial intelligence chip.
Lower Crude, Banking Strength Support Market
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said India's relative outperformance continues to be supported by weakness in South Korea's equity market and the ongoing correction in global semiconductor stocks.
He added that the continued moderation in foreign institutional investor outflows and the sharp fall in crude oil prices to pre-conflict levels have significantly strengthened India's macroeconomic outlook.
According to Vijayakumar, another important support for the market is the improving strength in banking stocks. He noted that the Reserve Bank of India's FCNR(B) deposit scheme is reportedly receiving strong interest, particularly from high-net-worth individuals in West Asia seeking safe investment avenues amid geopolitical uncertainty.
He said reports suggest the scheme could mobilise up to $60 billion, providing banks with additional resources to support robust credit growth. This, in turn, strengthens the investment case for banking stocks and could continue to support the Bank Nifty.
On the IT sector, Vijayakumar said the recent rally is largely valuation-driven after the sharp correction in technology stocks, although the sector still lacks strong fundamental triggers to sustain a prolonged uptrend.
