Indian Stock Market Ends Week On High Note With Strong Recovery

The Indian stock market surged on Friday, helping the benchmark indices end the week on a high note. Experts noted a strong 2,000-point rebound from the lows, indicating that the “buy-on-dips” strategy continues to work well in the market.

Vinod Nair, Head of Research at Geojit Financial Services, highlighted that inflation coming within the Reserve Bank of India’s (RBI) tolerance level, along with the expectation of easing food prices due to seasonal corrections in vegetable prices, has fueled optimism. He said, “This could build up the expectation for ease in monetary policy in February.”

Nifty’s Sharp Recovery And Sectoral Movements

On Friday, Nifty witnessed a remarkable recovery, bouncing more than 2% from the day’s low and closing with a gain of 220 points at 24,768 (+0.9%). The rally was supported by buying in FMCG, IT, and banking stocks, though broader market sentiment remained cautious.

Also Read: Indian Benchmark Indices Fall Over 1% Amid Market Turmoil

Siddhartha Khemka from Motilal Oswal Financial Services Ltd. noted that the intraday sell-off in Indian equities mirrored weakness across Asian markets, which posted steep losses. This was due to a stronger dollar, rising US Treasury yields, and ongoing concerns about China’s economic revival.

Weakness In Metal Stocks Amid China’s Uncertainty

The lack of clarity in China’s stimulus plans impacted metal stocks, pulling the Nifty Metal index down by 0.7%. Despite this, the overall market showed resilience, with the Sensex rising by 843.16 points or 1.04%, closing at 82,133.12. During the session, Sensex reached an intra-day high of 82,213 after recovering from a low of 80,082.

Midcap And Smallcap Stocks Underperform

While large-cap stocks led the rally, midcap and smallcap stocks underperformed. The Nifty Midcap 100 index closed at 58,991, down 30 points or 0.05%, and the Nifty Smallcap 100 index ended at 19,407, down 59 points or 0.30%.

Positive Outlook For H2 Earnings and FII Sentiment

Experts believe that gradual improvements in Industrial Production (IIP) and core sector data suggest a better earnings performance in the second half of FY25. There is also growing optimism that Foreign Institutional Investor (FII) selling has subsided, which could boost market sentiment in the short to medium term.

IT Sector Hits New Highs, Gold Faces Profit Booking

The Nifty IT index reached a new high and rallied around 3% during the week, buoyed by US inflation data that met expectations. This fueled hopes for a potential Fed rate cut next week. Meanwhile, gold saw a sharp sell-off as profit booking intensified. MCX Gold tumbled from Rs 79,000 to Rs 77,450. The current weakness suggests a trading range of Rs 76,000–78,000 in MCX, with a cautious short-term outlook amid ongoing market volatility.