Indian stock markets bounced back on Friday, with the Sensex gaining more than 330 points and the Nifty 50 reclaiming the 24,150 mark as investors returned to information technology stocks. The recovery ended a two-session decline and offered some relief after a volatile previous trading session.
The Sensex closed at 77,264.51, gaining 330.92 points, or 0.43%. The Nifty 50 settled at 24,175.65, rising 84.80 points, or 0.35%. The Nifty touched an intraday high of 24,188.30 before giving up part of its gains towards the close.
Despite Friday’s recovery, both benchmarks finished the week lower, extending their losing streak to a third consecutive week. The Sensex declined around 0.4% during the week, while the Nifty slipped about 0.3%.
IT stocks drive the rebound
Information technology stocks were the clear winners of Friday’s session.
The Nifty IT index rose around 3.5%, attracting strong buying interest as investors responded positively to the outlook for global technology spending and artificial intelligence infrastructure.
TCS emerged as the biggest Nifty 50 gainer, climbing more than 4%. Tech Mahindra and Infosys also posted strong gains, while Wipro and HCL Technologies advanced sharply.
The rally came as global technology stocks remained supported by optimism surrounding artificial intelligence. Continued investment in AI data centres, cloud computing and advanced digital infrastructure has strengthened expectations for technology spending, providing a positive backdrop for Indian IT companies.
Top gainers and losers
Unlike yesterday’s closing results, among the top gainers, TCS led the Nifty pack, followed by Tech Mahindra and Infosys. Wipro and HCL Technologies were also among the stronger performers.
However, the market’s gains were limited by weakness in several heavyweight stocks.
Bharti Airtel, Reliance Industries and HDFC Bank were among the prominent laggards. Reliance Industries declined around 2%, while HDFC Bank also ended lower. Bharti Airtel faced selling pressure during the session. Asian Paints and ITC were among other notable losers.
Banking stocks fail to join rally
Banking stocks did not participate meaningfully in the recovery.
The Nifty Bank index remained largely flat, reflecting a lack of strong buying interest in financial stocks. Weakness in major banking counters also prevented the benchmark indices from gaining more ground.
The subdued performance of banks is important because financial stocks have a significant weight in both the Sensex and Nifty. A sustained market recovery is therefore likely to require participation from the banking sector alongside IT and other major sectors.
Mid- and small-caps edge higher
The recovery extended into the broader market, although gains remained moderate.
The BSE MidCap index rose around 0.16%, while the BSE SmallCap index gained about 0.33%.
Market breadth was relatively positive, with more stocks advancing than declining on the BSE. This suggested that buying was not restricted entirely to a handful of large-cap IT companies.
Still, investors continued to remain selective. Concerns over global interest rates, foreign fund flows and elevated valuations prevented a stronger risk-on move across the broader market.
Volatility follows expiry session
Friday’s trading followed a highly volatile Thursday session that coincided with the monthly derivatives expiry.
The previous session was particularly closely watched because it marked the first monthly expiry after the introduction of the Closing Auction Session on the BSE. Sharp movements towards the end of trading added to uncertainty among market participants.
The volatility eased on Friday, allowing investors to focus on global technology cues and sector-specific opportunities.
The India VIX, which tracks expected market volatility, also moderated, offering some stability after the previous day’s sharp price movements.
Global cues remain important
International developments continue to play a major role in determining the direction of Indian equities.
Investors were focused on the latest signals from the US Federal Reserve, particularly ahead of Fed Chair Kevin Warsh’s Jackson Hole speech. His comments on inflation and interest rates were expected to influence expectations for US monetary policy.
The outlook for US interest rates is particularly important for emerging markets. Higher-for-longer rates can strengthen the dollar, raise global bond yields and encourage foreign investors to move money towards US assets.
Rupee and crude oil watched
The Indian rupee strengthened against the US dollar, providing another modest positive for the domestic market.
The currency ended around ₹95.38 against the dollar, compared with the previous close near ₹95.54.
Crude oil prices were also in focus. Oil prices were heading towards a weekly decline, which could provide some relief for India because the country imports a large proportion of its crude requirements.
Investors remain cautious
Friday’s rebound was encouraging, but it did not completely change the market’s broader trend.
The Sensex and Nifty both recorded their third consecutive weekly decline, showing that investors remain cautious despite the day’s gains.
Market participants are likely to track US monetary policy, foreign institutional investor activity, crude oil prices, the rupee and developments in the domestic economy.