The Indian equity markets posted notable gains on Friday over easing crude prices and a phased US-Iran agreement.

At the closing bell, the Sensex was up 315 points, or 0.43 per cent, at 73,895. The Nifty added 77 points, or 0.34 per cent, to close at 23,140.

Nifty Bank added 0.26 per cent or 389 points to settle at 55,762.

Indian equities staged a measured rebound following Thursday’s sharp decline, as reports of progress towards a phased US-Iran agreement improved sentiment.

Brent slipped toward $105.6 a barrel during the day after rising over 7 per cent over the previous two sessions, while West Texas Intermediate traded below $94, amid hopes of restored Middle East flows as discussions were reportedly taking place on the sidelines of the United Nations General Assembly.

US Treasury yields above 5 per cent and continued foreign selling along with global macro risks remain a key overhang over the markets.

The broader markets showed divergence with the benchmark indices, as Nifty Midcap 100 index lost 0.23 per cent, while the NSE Smallcap 100 added 0.17 per cent. Nifty Next 50 added 0.39 per cent.

All sectoral indices on NSE traded with gains except IT, media, pharma and healthcare index. Nifty auto, consumer durables and realty up 0.76 per cent, 0.87 per cent and 0.70 per cent respectively.

Rupee traded volatile this week, moving within the 95.57–95.97 range and ending largely flat near 95.85. Volatility in crude and gold, along with a rise in the dollar, limited the rupee’s ability to sustain gains.

Analysts said that the rebound was driven more by selective value buying than by a broad improvement in risk appetite. The divergence between large caps and weaker mid and small-caps also suggested that investors remain selective.

Market participants forecast that the sustainability of the rebound depends on crude stabilising, global yields cooling and selling pressure from foreign investors moderating.