Sensex Gains 414 Points, Nifty Closes Above 23,100 as IT Stocks Lead Market Rally
MUMBAI — Indian stock markets ended higher for the second consecutive session Friday, supported by declining crude oil prices and strong buying in information technology shares.
The BSE Sensex rose 413.70 points, or 0.56%, to close at 74,729.27, while the NSE Nifty 50 gained 148.80 points, or 0.65%, to finish at 23,146.15.
Technology stocks led the advance, with Tech Mahindra, Tata Consultancy Services (TCS) and Infosys emerging as the top performers on the Nifty.
The Nifty IT index recorded the strongest gains among sectoral indices, helping offset losses in other areas of the market. Meanwhile, the Nifty Oil and Gas index was the weakest performer as energy stocks remained under pressure.
Market analysts said the Nifty’s continued recovery following Thursday’s breakout signaled improving short-term investor sentiment.
“If the index sustains above 23,000, the ongoing mean reversion rally could extend towards its 50-DMA in the 23,500–23,600 zone. However, the broader trend requires confirmation,” analysts said.
They identified immediate support at 22,800 and resistance at 23,200, noting that the index must remain above 23,000 to maintain its upward momentum.
“The immediate support is placed at 22,800, while resistance is seen at 23,200. Sustaining above 23,000 remains crucial for further upside momentum,” market watchers added.
Despite gains in the benchmark indices, the broader market remained relatively subdued.
The Nifty Midcap 100 index declined 0.11%, while the Nifty Smallcap 100 index slipped 0.01%, indicating that buying interest was concentrated primarily in large-cap stocks.
Analysts attributed the positive market sentiment partly to easing crude oil prices, which helped reduce concerns about inflation and improved investor confidence.
A stronger rupee also provided some support, although market participants remained cautious about global economic uncertainty and geopolitical developments.
“The sectoral divergence reflects investors’ preference for earnings visibility amid persistent cost pressures. While rupee appreciation and easing crude prices provide near-term support, global inflationary and geopolitical risks warrant caution,” analysts said.
They cautioned that a sustained market recovery would depend on stronger corporate earnings across a wider range of industries rather than continued gains in technology stocks alone.
“Sustaining the recovery will require broader earnings growth beyond IT, supported by an improvement in domestic demand and easing margin pressures,” market watchers noted.
The latest gains extended the market’s two-session recovery, although analysts said a more convincing upward trend would require broader participation from midcap and small-cap stocks. (Source: IANS)
