Indian equity markets recorded their second consecutive session of gains on Friday, supported by strong demand for information technology shares and a decline in crude oil prices.
The BSE Sensex advanced 413.70 points, or 0.56 per cent, to close at 74,729.27. The NSE Nifty 50 gained 148.80 points, or 0.65 per cent, to finish at 23,146.15.
Tech Mahindra, Tata Consultancy Services (TCS) and Infosys led the Nifty gainers. Strong performance across technology stocks helped offset losses in other sectors and lifted the benchmark indices.
Market experts observed continued buying interest around the 22,900 level after Thursday’s breakout from a consolidation phase. They said the movement indicated improving near-term 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 stated.
They identified 22,800 as immediate support and 23,200 as resistance. Market watchers stressed that the index must remain above 23,000 to sustain its upward momentum.
Sectoral Performance Remains Uneven
The Nifty IT index recorded the strongest sectoral gains during the session. Meanwhile, the Nifty Oil and Gas index underperformed as energy-related shares faced selling pressure.
Broader markets failed to match the benchmarks’ performance. The Nifty Midcap 100 declined 0.11 per cent, while the Nifty Smallcap 100 edged down 0.01 per cent.
Easing crude prices helped reduce inflation concerns and encouraged investors to take on more risk. However, analysts cautioned that global inflationary pressures and geopolitical uncertainties could limit further gains.
“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 stated.
Market watchers said a sustained recovery would require stronger earnings growth beyond IT, alongside improved domestic demand and lower pressure on corporate margins.
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