Indian stock markets extended their recovery for a second consecutive session on Friday, October 16, as strong buying in information technology (IT) shares lifted benchmark indices despite mixed global signals. The BSE Sensex rose 413.66 points, or 0.56%, to close at 74,729.27, while the NSE Nifty 50 gained 148.80 points, or 0.65%, to settle at 23,146.15.
The rally was led by technology stocks following encouraging quarterly earnings from major IT companies. Buying in metal, media and automobile shares also supported the market. However, mid-cap and small-cap stocks struggled to match the gains recorded by the benchmark indices.
The Sensex initially faced selling pressure but recovered as the session progressed. The Nifty touched an intraday high of 23,149.85 before ending close to that level, reflecting sustained demand for large-cap stocks.
Friday’s gains extended the market’s weekly rally. The Sensex rose around 3.1% during the week, while the Nifty advanced approximately 2.8%. This marked the strongest weekly performance for both indices in six months, supported largely by a sharp rebound in IT stocks.
Technology shares remained the biggest drivers of the recovery. The Nifty IT index climbed 3.92% on Friday, extending its gains after investors responded positively to quarterly earnings and management commentary from major software services companies.
Tech Mahindra emerged as the top gainer on the Nifty 50, surging 8.48% to ₹1,790. The company reported a 32.7% year-on-year increase in second-quarter net profit to ₹1,585.6 crore. Its performance was supported by stronger business volumes and cost savings. The company’s board also recommended a 1:1 bonus issue, under which shareholders will receive one additional share for every share held.
Wipro shares gained more than 6% after its September-quarter results, while Tata Consultancy Services (TCS) rose nearly 4.9%. Infosys and HCL Technologies also advanced, adding to the strength across the IT sector. Investors have been looking for signs that technology companies can sustain earnings growth amid uncertainty over global client spending and the impact of artificial intelligence.
The Nifty IT index gained around 11.7% over the week, marking its strongest weekly advance in 18 years, according to market reports. TCS, Infosys, HCLTech and Tech Mahindra were among the sector’s strongest performers during the period.
The recovery follows a difficult phase for IT stocks, which had faced pressure from concerns about artificial intelligence, slower client spending and the future of traditional outsourcing services. Recent earnings have helped ease some of those worries, encouraging investors to return to stocks whose valuations had come under pressure.
Other major gainers on the Nifty included Bharti Airtel, Mahindra & Mahindra and Bajaj Finance. Metal stocks also advanced, with Hindalco and JSW Steel among the companies supporting the broader market. Public sector banks and infrastructure stocks recorded gains as well.
Not every sector participated in the rally. InterGlobe Aviation, the operator of IndiGo, was among the leading Nifty losers, falling around 1.9%. BSE Ltd, Max Healthcare, Tata Consumer Products and Jio Financial Services also ended lower. Selling pressure was visible in oil and gas, pharmaceutical, real estate and healthcare stocks.
The broader market remained subdued despite the rise in benchmark indices. The Nifty Midcap 100 declined 0.11%, while the Nifty Smallcap 100 slipped 0.01%. This divergence suggested that investors were favouring larger companies with clearer earnings visibility rather than buying across the market.
The Indian rupee also strengthened, ending at ₹94.95 against the US dollar compared with the previous close of ₹95.05. It marked the currency’s sixth consecutive session of gains. A stronger rupee can help ease imported inflation, although its impact on IT companies varies because many earn a significant share of their revenue in foreign currencies.
Crude oil prices remained a concern for investors, with Brent crude trading near $105 a barrel. Elevated oil prices can raise India’s import bill and add pressure to inflation, corporate costs and the rupee. Global inflation trends and bond yields also remain important factors shaping expectations for interest rates and equity valuations.
Attention now turns to upcoming quarterly results from major banks, including HDFC Bank and ICICI Bank, which could influence market direction in the coming week. Investors will also track the proposed Jio Platforms initial public offering, scheduled to open on October 21, as the large issue could affect liquidity and investor allocations.
Market analysts see the Nifty’s ability to hold above 23,000 as important for sustaining the recovery. A move beyond the 23,300 zone could support further gains, while renewed selling or disappointing earnings may trigger profit booking.
The latest rally has improved sentiment, particularly in technology stocks. However, investors will need broader earnings growth, stable global conditions and continued buying beyond a handful of heavyweight companies to determine whether the recovery can develop into a more durable market uptrend.