Mumbai- Indian benchmark equity indices staged a strong rebound on Friday, snapping a two-session losing streak as buying across sectors, gains in information technology stocks and softer global oil prices lifted investor sentiment.
The BSE Sensex surged 879.09 points, or 1.23 per cent, to close at 72,472.33, while the NSE Nifty50 advanced 288.65 points, or 1.3 per cent, to settle at 22,520.45.
The recovery was supported by strong buying in heavyweight stocks, with Apollo Hospitals Enterprise, ITC and Eicher Motors emerging among the top gainers on the Nifty. Lower crude oil prices also eased concerns about inflation and pressure on corporate profitability.
The rally extended to broader markets, indicating wider participation by investors. The Nifty MidCap index rose 1.56 per cent, while the Nifty SmallCap index gained 0.54 per cent.
Among sectoral indices, the Nifty IT index led the gains, supported by renewed interest in technology stocks. In contrast, the Nifty Oil and Gas index underperformed and ended as the weakest sectoral gauge.
Market analysts said the rebound helped benchmark indices recover a significant portion of their recent losses, with value buying and short covering contributing to the recovery after the recent correction.
“Immediate support is placed at 22,450, followed by 22,300, while resistance is seen around 22,600. A sustained breakout above 22,600 could extend the recovery towards 22,800,” analysts said.
Investors are now awaiting domestic Consumer Price Index (CPI) inflation data due on Monday for further indications of the interest-rate outlook following the Reserve Bank of India’s shift towards calibrated tightening. The performance of companies in the second-quarter earnings season is also expected to influence the sustainability of the recovery.
Market watchers said the rally reflected renewed confidence following a strong start to the Q2 earnings season, with information technology stocks gaining support from expectations of revenue opportunities linked to artificial intelligence.
Meanwhile, the rupee strengthened by around 20 paise to 96.73, supported by improving capital-market flows and optimism over the possibility of US-Iran diplomatic discussions following US President Donald Trump’s comments on a potential diplomatic approach.
–IANS