Equity Markets Start Strong; Sensex Jumps 228 Points, Nifty Breaches 24,800

Sensex Jumps 749 Points, Nifty Reclaims 25,000 on RBI Boost for Infra Lending.

Indian stock markets rallied strongly on Friday after the Reserve Bank of India (RBI) introduced policy changes aimed at easing infrastructure financing norms. By noon, the BSE Sensex surged 749 points to reach 82,111.19, while the NSE Nifty50 jumped 235.70 points to cross the psychological 25,000 mark, trading at 25,028.95.

What Triggered the Rally?
The RBI’s new guidelines relaxed provisioning requirements for loans extended to under-construction infrastructure projects. This means banks and NBFCs now need to set aside less capital as buffer against potential defaults, freeing up funds for lending — particularly in capital-heavy sectors like power, housing, transport, and logistics.

Markets cheered the move, viewing it as a major positive for credit flow and economic growth.

Infra & Financial Stocks Lead the Charge
Infrastructure financiers and financial stocks led the rally:

Power Finance Corporation, REC, and IRFC recorded strong intraday gains.

Key contributors to index gains included Jio Financial, Shriram Finance, Mahindra & Mahindra, and JSW Steel.

Heavyweights like Reliance Industries and State Bank of India rose between 1–2%, reinforcing the market momentum.

Under the Surface: Mid & Small Caps Still Struggling
Despite the headline gains, concerns persist in the broader market. Small- and mid-cap stocks (SMIDs) continued to witness pressure, with some declining by up to 2% during the session.

According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services:

“The Nifty may stay range-bound between 24,500 and 25,000 unless geopolitical tensions — especially in the Middle East — ease.”

He also flagged caution around richly valued mid- and small-cap stocks, recommending a shift to stable, fairly valued large-cap names in sectors like financials, industrials, automobiles, and real estate.

Risks on the Radar
While RBI’s move has improved short-term sentiment, markets remain sensitive to:

• Geopolitical risks, especially the Israel-Iran conflict
• Volatile crude oil prices — any sustained move above $85/barrel could test the market’s lower bound
• Valuation pressures in broader segments

Institutional buying continues to support dips, but global headwinds mean volatility is likely to persist.

Bottom Line
Friday’s rally reflects market optimism around the RBI’s push to unlock infrastructure lending. It’s a policy-led bounce, but not without caution. With global uncertainty still weighing on investor sentiment, a selective, value-driven approach remains key.