Stock market news: Indian benchmarks started the day on a negative note amid weak Asian cues and escalating geopolitical tensions. However, both Sensex and Nifty surged midday on the bank of HDFC Bank, M&M, Bajaj Finance among others.

The benchmark BSE Sensex rose 599.34 points, or 0.83 per cent, to 73,088.33, while the broader NSE Nifty 50 gained 158 points, or 0.72 per cent, to 22,153.85, but posted a weekly loss on geopolitical tensions in the Middle East and US rate worries.

HDFC Bank, a key player in the Nifty, surged 2.45 per cent, propelling financial services. The bank is set to announce its quarterly results on Saturday. Conversely, US-rate sensitive IT stocks declined 0.39 per cent on the day and 4.71 per cent over the week, marking their second-worst week in 12 months.

This decline was attributed to diminishing hopes of early US rate cuts and disappointing reports from market leaders TCS, Infosys, and Wipro, the latter reporting revenue below expectations after the closing bell.

Additionally, escalating tensions between Israel and Iran globally impacted stock markets and triggered a surge in oil prices. This development raised concerns about inflation, particularly in net importers like India.

Saurabh Jain, Assistant Vice President of Research at SMC Global Securities, noted that worries about sustained high-interest rates, coupled with fears of enduring high oil prices, have rekindled inflation concerns, dampening investor sentiment. 

The week also saw small and mid-cap stocks decline by 1.37 per cent and 2.74 per cent, respectively, while volatility reached a one-month high. Jain predicts that volatility will remain high due to weak IT results, ongoing national elections, and uncertain global cues, keeping investors on edge.

(with Reuters inputs)